GILS Employment Law: Georgia
GEORGIA
(1) Maternity and Family Leave Rights
1.1. How long is the duration of maternity leave?
Тhе employee, exclusively mother of the child, shall, upon her request, be granted paid maternity leave of 126 calendar days and in the case of childbirth complications or the birth of twins, maternity leave of 143 calendar days. Employees may distribute the period of maternity leave at their discretion over the pregnancy and postnatal periods.
1.2. What are the rights of a parent when returning to work after parental leave?
Maternity, Parental, Newborn Adoption and Additional Parental Leave represent the basis for suspending the employment relationship, upon the termination of which, the employee is entitled to retain his/her workplace and position and resume the previous job duties.
1.3. Do fathers possess the right to take paternity leave?
Under Article 37.4 of the Labour Code of Georgia, the use of leave due to pregnancy and childbirth is the exclusive right of the child's mother, although the father of the child has a right to enjoy the days of said leave which have not been used by the mother of the child.
1.4. Are there any additional parental leave rights that employers must adhere to?
The employee shall, upon his/her request, be granted parental leave of 604 calendar days and in the event of childbirth complications or the birth of twins - a parental leave of 587 calendar days. 57 calendar days of the leave shall be paid. The mentioned leave can be used in whole or in parts by the mother or the father of the child.
An employee who has adopted a child under 1 year of age is granted leave for the adoption of a newborn total limitation of 550 calendar days after the birth of the child. 90 calendar days of this leave shall be paid.
An employee may, upon his/her request, be granted, in whole or in parts, but not less than 2 weeks a year, additional unpaid parental leave of 12 weeks until the child turns 5. Additional parental leave may be granted to any employee who actually takes care of the child.
1.5. Do employees have the right to flexible working arrangements if they are responsible for dependents?
The Labour Code of Georgia does not provide for a special provision on flexible work schedules for employees who are responsible for dependents. However, the parties are not limited to establishing a preferred work schedule by mutual agreement, subject to compliance with the minimum standards for the protection of employee rights provided for by the Labor Code of Georgia.
In addition, according to Article 16.4a of the Labor Code of Georgia, as far as objectively possible, an employer shall, considering the employee's request, transfer the employee from full-time work to part-time work that becomes available in the establishment.
Moreover, employees who are breastfeeding infants under the age of 12 months may request an additional break of at least 1 hour a day. A break for breastfeeding shall be included in working time and shall be paid.
(2) Termination of Employment
2.1. Is it mandatory for employers to provide notice of termination of employment? How is the notice duration determined?
In the event of termination of the employment by the employer, the employer shall notify the employee at least 30 calendar days in advance by sending a written notice. In such case, the employee shall be granted severance pay in the amount of at least 1 month’s remuneration.
The employer is entitled to notify the employee on termination of the employment at least 3 calendar days in advance by sending a written notice provided that the employee is granted severance pay in the amount of at least 2 month’s remuneration.
2.2. Can employers enforce "garden leave" during the notice period, where the employee remains employed but does not have to attend work?
The Labor Code of Georgia does not provide the concept of “garden leave” although Article 60 of this Code establishes limitations under employment agreement.
An employment agreement may provide for an employee's obligation not to use the knowledge and skills acquired in the course of fulfilling the conditions of the employment agreement in favour of an employer competing with his/her employer. This limitation may be extended to 6 more months after terminating labour relations, on condition that during the period of said limitation the employer shall pay the employee remuneration of at least the amount that the employee was paid at the moment when labour relations were terminated. Such limitations may not be imposed on employees in the field of education, science or culture.
2.3. What safeguards do employees have against dismissal? Under what circumstances is an employee considered to be dismissed? Is consent from a third party necessary before dismissal by an employer?
Termination of labour relations shall be inadmissible on grounds other than those referred to in Article 47 of the Labour Code of Georgia.
The grounds for terminating employment agreements are:
a) economic circumstances, and/or technological or organisational changes requiring downsizing;
b) the expiry of an employment agreement;
c) the completion of the work under an employment agreement;
d) the voluntary resignation of an employee from a position/work on the basis of a written application;
e) a written agreement between parties;
f) the incompatibility of an employee’s qualifications or professional skills with the position held/work to be performed by the employee;
g) the gross violation by an employee of his/her obligations under an individual employment agreement or a collective agreement and/or of internal labour regulations;
h) the violation by an employee of his/her obligations under an individual employment agreement or a collective agreement and/or of internal labour regulations, if any of the disciplinary steps under the said individual employment agreement or collective agreement and/or internal labour regulations has already been taken against the employee during the last year;
i) long-term incapacity for work, unless otherwise determined by an employment agreement, if the incapacity period exceeds 40 consecutive calendar days, or the total incapacity period exceeds 60 calendar days within a period of 6 months, and, at the same time, the employee has already used his/her leave under Article 31 of this Law;
j) the entry into force of a court judgment or other decision precluding the possibility of performing the work;
k) a decision on declaring a strike illegal that was delivered by a court in accordance with Article 67(3) of this Law and that became final;
l) the death of an employer who is a natural person, or of an employee;
m) the initiation of liquidation proceedings against an employer who is a legal person;
n) other objective circumstances justifying the termination of an employment agreement.
The violation of an obligation under the internal labour regulations may serve as a basis for terminating an employment agreement only where the internal labour regulations are an integral part of the employment agreement.
Where an employment agreement is terminated on the ground of other objective circumstances an employer shall substantiate in the written notification on termination objective circumstance justifying the termination of the employment agreement.
The legal representatives of minors, or custody/guardianship authorities, may request the termination of an employment agreement with a minor if continuing work endangers the life, health, or other significant interests of the minor.
2.4. Are there specific employee categories enjoying special protection against dismissal?
Terminating labour relations shall be inadmissible:
a) In the event and from the notification to the employer from a female employee about her pregnancy and during the period of maternity leave, parental leave, new born adoption leave, or additional parental leave, except for the termination of an employment agreement on the grounds directly provided by the Labor Code of Georgia.
b) Due to an employee being conscripted into national conscript military service, or non-military, unarmed labour service or military reserve service, and/or during an employee’s period of national conscript military service, or non-military, unarmed labour service or military reserve service, except for the termination of an employment agreement on the grounds directly provided by the Labor Code of Georgia.
c) During the period of being a member of a jury in court, except for the termination of an employment agreement on the grounds directly provided by the Labour Code of Georgia.
d) On the grounds of discrimination.
2.5. Under what circumstances is an employer justified in dismissing employees: 1) due to individual reasons; 2) business-related grounds? Do employees receive compensation upon dismissal, and if so, how is it calculated?
The employment can be terminated only on the grounds listed above, which are directly provided by the Labour Code of Georgia.
The employee shall be granted severance pay in the amount of at least 1 month’s remuneration if employment agreement is terminated by an employer by sending written notification to the employee at least 30 calendar days in advance.
Where an employment agreement is terminated by an employer by sending written notification to the employee at least 3 calendar days in advance, the employee shall be granted severance pay in the amount of at least 2 month’s remuneration.
2.6. Are there particular protocols that employers must adhere to regarding individual dismissals?
The following protocols shall be adhered by the employer regarding dismissal of an employee:
a) Employer shall notify the employee in writing on the termination of employment at least 30 calendar days in advance and provide severance pay in the amount of at least 1 month’s remuneration or notify the employee in writing on the termination of employment at least 3 calendar days in advance and provide severance pay in the amount of at least 2 month’s remuneration as well as compensate the employee for unused leave in proportion to the duration of the employment.
b) Employer shall provide a written substantiation of the grounds for terminating an employment agreement within 7 calendar day after an employee submits a request. Such request shall be submitted to the employer within 30 calendar days from receiving an employer’s notification about terminating an employment agreement.
c) Employer is obliged to reflect information on termination of the employment with the employee in Labour Migration Information Portal if the employee is a citizen of a foreign state. The employer also has the obligation to provide information to the Service Development Agency of Georgia on the termination of the employment agreement with a foreign employee, if the labour relationship was the basis for the work residence permit issued to the employee.
2.7. What claims can an employee pursue if they are dismissed? What remedies are available for a successful claim?
An employee may, within 30 calendar days from receiving an employer’s written substantiation, appeal in court against the employer’s decision on terminating the employment agreement.
If an employer’s decision on terminating the employment agreement is declared void by the court, the employer shall, under the court decision, reinstate the person whose employment agreement was terminated, or provide the person with an equal job, or pay compensation in the amount determined by the court.
An employee may, in addition to being reinstated, or to receiving an equal job, or receiving compensation in exchange therefor, request compensation for lost earnings from the date when the employment agreement was terminated up to the date when the final court decision declaring void the employer’s decision on terminating the employment agreement was enforced. In determining compensation for lost earnings, a court shall take into account any severance pay granted to the employee by the employer.
2.8. Can employers resolve claims before or after they are initiated?
An individual dispute shall be resolved under conciliation procedures between the parties. this involves direct negotiations between an employee and an employer.
A party shall notify the other party in writing of the initiation of conciliation procedures. The notification shall specify the reasons for the dispute and the claims of the party. The other party shall review the written notification and inform the party of its decision in writing within 10 calendar days after receiving the notification. The parties or their representatives shall make decisions in writing, which shall become part of the existing employment agreement.
If the parties fail to reach an agreement over the dispute within 14 calendar days after receiving the written notification a party may refer the dispute to a court. The parties may agree to refer a dispute to arbitration.
The parties are not limited to settle the dispute after submitting the dispute to court or arbitration and at any stage of proceedings.
A collective dispute (a dispute between an employer and a group of employees (at least 20 employees) or an employer and an employees’ association) shall be resolved under conciliation procedures between the parties. This involves direct negotiations between an employer and a group of employees, or an employer and an employees’ association, or mediation, if one of the parties sends an appropriate written notification to the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia (the “Minister”).
A party shall notify the other party in writing of the initiation of conciliation procedures. The notification shall specify the reason for the dispute and the claims of the party. To reach agreement at any stage of negotiations, a party may apply to the Minister in writing to appoint a dispute mediator to initiate mediation. The notification shall be delivered to the other party to the dispute on the same day.
After receiving a written notification the Minister shall appoint, on the basis thereof, a dispute mediator in accordance with the procedure for reviewing and resolving collective disputes under conciliation procedures approved by a normative act of the Government of Georgia. In the case of high public interest, the Minister may, on his/her own initiative, appoint a dispute mediator at any stage of the dispute without a written application from a party. The fact of the appointment of a dispute mediator shall be notified in writing to the parties involved. The Minister may make a decision to terminate conciliation procedures at any stage of the dispute.
Parties shall participate in conciliation procedures and attend meetings held by the dispute mediator for that purpose. Parties may agree at any stage of a dispute to refer the dispute to arbitration.
2.9. Does an employer bear additional obligations when dismissing multiple employees simultaneously?
A collective redundancy shall be deemed to be the termination of employment agreements by an employer for 30 calendar days on a basis that is not conditioned by an employee’s person or behaviour, or by the expiry of the employment agreements:
a) with at least 10 employees − in an organisation in which the number of employees is more than 20 but less than 100;
b) with at least 10% of employees − in an organisation in which the number of employees is more than 100.
If an employer is planning collective redundancies, employer shall start consultations with the employees’ association (or if there is no employees’ association, with the employees’ representatives) within a reasonable time, with a view to reaching a possible agreement. Consultations shall at least include the ways and means of preventing collective redundancies or reducing the number of employees to be laid off, and the possibility of re-employment in respect of laid-off employees, and support for their retraining.
An employer shall send a written notification to the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia (the “Minister”) and to the employees whose employment agreements are being terminated, at least 45 calendar days before the collective redundancy. An employer shall communicate to the employees’ association (or if there is no employees’ association, to the employees’ representatives) a copy of the notification sent to the Minister. A collective redundancy shall take effect 45 calendar days after the notification has been sent to the Minister.
Employees shall be granted an opportunity to submit constructive proposals. The employer shall provide the following information to the employees’ association (or if there is no employees’ association, the employees’ representatives) in writing: the reasons for the planned collective redundancy, the number and category of employees to be laid off, the total number and categories of employees in the organisation, the period of time during which the collective redundancy will take place, and the criteria according to which employees to be laid off are selected and paid compensation.
2.10. How can employees enforce their rights regarding mass dismissals, and what are the consequences if an employer fails to comply with its obligations?
The rights of employees regarding mass dismissal might be protected through court. A court decisions held in favor of employees are binding and the employer is obliged to enforce it. The court decision may result in the reinstatement of employees, the obligation to provide them with an equal job, or pay compensation in the amount determined by the court.
(3) Data Protection and Employee Privacy
3.1. How does the employment relationship get impacted by employee data protection rights? Is the transfer of employee data across borders unrestricted for employers?
Under Article 37 of the LAW OF GEORGIA ON PERSONAL DATA PROTECTION, data may be transferred to other states and international organisations if there are grounds for data processing under the laws of Georgia and if appropriate data protection guarantees are provided by the respective state or international organisation.
Data may also be transferred to other states and international organisations, if:
a) The Data transfer is part of a treaty or an international agreement of Georgia;
b) A data processor provides appropriate guarantees for protection of data and of fundamental rights of a data subject on the basis of an agreement between a data processor and the respective state, a natural or legal person of this state or an international organisation. In such a case data may be transferred only with permission of the Personal Data Protection Inspector's Office of Georgia, which shall be obtained by submitting a pre-established application form.
Before issuing such permission, Inspector shall assess the presence of appropriate guarantees for data protection in other states and/or international organisations, and make a decision on the basis of analysis of the legislation regulating data processing and the practice.
If electronic database of employees’ personal data is available to employer’s branches, founders and/or partners, which are not subject to Georgian jurisdiction, it is necessary to comply with the rules of law regarding transfer of data to other state and international organization.
3.2. Are employees entitled to obtain copies of any personal information held by their employer?
The employee is entitled to receive information about the processing of his/her personal data. In particular, which personal data are being processed; the purpose of data processing; the legal grounds for data processing. as well as to whom his/her personal data were disclosed, and the grounds and purpose of the disclosure.
The employee shall have access to his/her personal data regardless of the form in which they are stored. Employee can get a copy of the document and record containing his/her personal data. Employees' access to personal data should be unrestricted and free of charge.
Moreover, an employee has the right to request from the employer to correct, update, add, delete, block or destroy his/her data if they are incomplete, inaccurate, not updated, or if their collection and processing was carried out against the law. Within 15 days after receiving the request of the data subject, the employer is obliged to take the appropriate action or inform the employee of the grounds for refusal.
3.3. Do employers have the authority to conduct preemployment checks on prospective employees (such as criminal record checks)?
Employee’s personal data shall be collected from the employee himself/herself, and in case if it is necessary to collect such information from the third party, the employee shall be informed about it and explained about the purpose and reason of collecting the personal data from the third party.
The employer has the right to obtain information about the candidate, except for information that is unrelated to job performance, job specifications and not necessary to evaluate the candidate's ability to perform a specific job and make an appropriate decision.
According to the recommendations issued by the Inspector’s office, if the applicant is required to fill in the application for the vacancy, it is desirable to mark the mandatory fields in the application. Failure to fill in the non-mandatory fields should not result in obstacles to move the applicant to the next stage.
If employee provides employer with information that is not necessary for labor relations, the information/documents shall be returned to data subject or shall be destroyed in accordance with established rule.
3.4. Do employers have the right to monitor employee emails, phone calls, or use of company computer systems?
This might require a case-by-case assessment. If there is a necessity to control job email, computer systems, and phones used for jobrelated purposes, the employer shall notify employees on such control. While controlling the employer shall do its best to sort out personal and job-related communication of employee to avoid the violation of personal data protection regulations.
According to the best practice and recommendations issued by the Inspector’s office employer shall elaborate rules for use of corporate email, which will include information about the possibility of controlling email by the employer. If the employees use job email for personal communication, it is appropriate to place personal mail in a separate folder with appropriate indication (e.g. „private”). The employee shall be informed about back-up copies and term of mail storage.
3.5. Can employers control an employee's use of social media both inside and outside the workplace?
Control of an employee’s use of social media shall be allowed only if it serves the objectives of employment, such as effective use of the employee's work-time, maintaining the employer's reputation, and etc.
(4) Court Practice and Procedure
4.1. Which courts or tribunals hold jurisdiction over employment-related complaints, and what is their composition?
Labor disputes are adjudicated by the Courts of Georgia. Labor disputes are subject to judicial mediation, excluding collective disputes stipulated by the the Labour Code of Georgia.
The parties of the Labour Agreement may agree to refer a dispute to arbitration.
4.2. What procedures govern employment-related complaints? Is conciliation obligatory before proceeding with a complaint, and is there a fee for employees to submit a claim?
In the event of submitting the claim on labour law-related dispute, except for a collective dispute under the Organic Law of Georgia the Labour Code of Georgia, the judge shall preliminarily examine the circumstances of the case in question and shall make the decision to refer the dispute case to a mediator without the parties’ consent, and with the parties’ consent if the opportunity to apply private mediation was used in relation to the same dispute and it ended without result.
The period of a judicial mediation shall be 45 days, but at least two meetings. This term may be extended for the same period by agreement between the parties. The parties shall be obliged to appear at the time and place determined by the mediator in order to participate in the process of judicial mediation. If a dispute failed to end with an agreement between the parties within the statutory time limit set for judicial mediation, the plaintiff may apply to a court for resuming the proceedings. If, within 10 days after the statutory time limit set for judicial mediation has passed, none of the parties applies to a court for resuming the proceedings, the court shall deliver the ruling on dismissing the claim. If parties reach an amicable settlement in the process of judicial mediation, the plaintiff shall be refunded 70% of the state fees paid.
Claims for the enforcement of the payment of salary and for other claims related to remuneration, which are derived from a legal labour relationship shall be released from the payment of state duty for cases to be reviewed by common courts.
4.3. What is the typical duration for resolving employment-related complaints?
Further to the Article 59.3 of Civil Procedural Code of Georgia, disputes related to labor relations shall be resolved no later than one month. However, in practice, due to the overload of the judicial system, the mentioned term is much longer. In addition, the dispute may continue in the higher instance courts, which further delays its completion.
4.4. Is it possible to appeal against a decision at the first instance, and if so, how long does such an appeal usually take?
There are three instance courts in Georgia: the first level - the city court, the second level - the appeal court, the third level - the Supreme Court. The decision made by the city court and appeal court may be appealed to the court of the next level.
The decision of the city court can be appealed in the court of appeal within 14 days from the delivery of the decision. The decision of the appellate court can be appealed in the Supreme Court within 21 days from the delivery of the decision. The decision of the Supreme Court is final and not subject to appeal. According to the current practice, the average term to resolve the dispute in the Court of Appeal and Supreme Court is 1-2 years.
(5) Work Permits
5.1. What are the restrictions or limitations placed on individuals holding a work permit in terms of job duties, employer changes, or duration of stay?
The immigration policy of Georgia became comparatively liberal, allowing citizens of 98 countries (please find table 1 to the following link) to enter, reside and work in Georgia without the necessity to obtain either visa or residence permit for 1 (one) full year (unless otherwise noted in the table).
An individual holding a valid work permit enjoys parity with employed citizens, thus incurring no additional constraints. The holder of a work permit is not limited to change the employer, however, in case of termination of the employment, the parties are obliged to inform the State Services Development Agency about such termination, and the employee is obliged to submit information to the Agency about the new employer, in order to maintain the work permit in Georgia.
5.2. What are the requirements for obtaining a work permit?
In order to obtain a work permit, the foreign applicant shall submit a request to the State Service Development Agency no later than 40 calendar days before the expiration of lawful stay in Georgia.
The request shall be accompanied with the Following documents:
a) completed application form, in which, together with other data, the unique code, assigned during the registration of the labor immigrant in the Labour Migration Electronic Portal of the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia, is indicated;
b) the applicant's travel document;
c) a copy of the document evidencing the applicant’s lawful stay in Georgia ;
d) a document evidencing employment or business activity (labour contract or other employment document) in Georgia;
e) a document, proving that the monthly income/salary received by the applicant from entrepreneurial or labour activities in Georgia is not less than five times the amount of the minimum subsistence level for average consumers in Georgia. The amount in the personal bank account of the applicant (including the statement issued by the bank) can also be considered as a proof of income. The amount in the personal bank account should not be less than five times the amount of the minimum subsistence level for average consumers in Georgia taking into account the duration of the work permit.
f) a certificate from the Revenue Service confirming that the employing company's annual turnover for each employed foreign national exceeds 50,000 GEL. For companies engaged in educational or medical activities, the turnover threshold is 35,000 GEL.
g) a certificate from the employing company regarding the number of foreign nationals employed in the company.
h) a color photo sized 3/4, available in electronic format or taken onsite.
The service incurs a fee of 300 GEL if decision of the State Service Development Agency is provided on the 30th day post-application, 450 GEL - on the 20th day, and 600 GEL on the 10th day postapplication.
5.3. Are there any recent changes or updates to work permit regulations or policies that individuals or employers should be aware of?
According to the Resolution No. 291 of the Government of Georgia dated August 8, 2023, the employer is obliged within a maximum of 30 calendar days after the signing of the labour agreement with the labour immigrant, to register foreign employee in the Labour Migration Electronic Portal of Ministry of Internally Displaced Persons from the Occupied Territories, Health, Labour and Social Affairs of Georgia.
5.4. Are there specific industries or occupations that have different requirements or exemptions for obtaining a work permit?
No overarching arrangement exists; the matter must be examined on a case-by-case basis, taking into account the particular field in question.
5.5. What is the ratio of foreign and local labor?
Not Applicable.
(6) Tax
6.1. What are the legal obligations and requirements regarding the individual income tax paid by employers?
Individual Income Tax shall be withheld at the rate of 20%.
6.2. What is the percentage of withholding tax?
The employer deducts pension contributions and income tax from the employee's salary. Specifically, 2% of the employee's salary is deducted for pension contributions, followed by a 20% deduction for income tax. Employer additionally pays 2% on the employee's salary as a pension contribution.
Authors:
Eka Vasadze, Ani Silagadze.
