Georgia PEO & Employer of RecordReading Time: 4 minutes
Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Georgia. Your candidate is hired via Globalization Partners’ Georgia PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Georgia while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Georgia.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 170 countries around the world, quickly and painlessly.
Georgia is a small country that bridges Eastern Europe and Western Asia. It borders the Black Sea and has a population of 4.5 million. Georgians are a very friendly people, but punctuality is not one of their strengths. Be prepared for meetings to start 45 minutes to one-hour late, and allow for frequent interruptions, although you should arrive on time. Agreements are rarely reached in the first meeting, which is usually just to determine if the relationship seems workable, and because Georgians are a passionate people, negotiations can become loud and animated.
When negotiating terms of an employment contract and offer letter with an employee in Georgia, it may be useful to keep the following in mind:
13 national public holidays, including
- New Year’s Day
- Orthodox Christmas Day
- Orthodox Epiphany
- Mother’s Day
- International Women’s Day
- National Unity Day
- Orthodox Easter Sunday
- Orthodox Easter Monday
- Victory Day
- Independence Day
- Mariamoba (Assumption)
- Svetitskhovloba (Georgian Orthodox Festival)
- Giorgoba (St George’s Day)
Working hours in Georgia
The standard work week in Georgia is 41 hours.
Vacation in Georgia
Employees are entitled to paid leave of 24 business days per year and unpaid leave of 15 calendar days per year.
Georgia Maternity Leave
Mothers are entitled to 126 calendar days of paid leave, or 140 days in the case of multiple births or complications with childbirth. Leave can be taken during and post pregnancy.
Leave is paid for by the state, although employers may provide additional compensation.
Employees are also entitled to two weeks of unpaid leave per year to care for a child until the child turns five.
Georgia Termination Laws
Probation periods of up to six months are allowed and must be in writing.
Employers may terminate employment for the following reasons:
- performance of obligations envisaged by the employment agreement;
- expiration of the effective term of the employment agreement;
- infringement of the employment agreement terms by either party;
- invalidation of the employment agreement;
- agreement of parties;
- enforcement of the court judgment or decision which makes performance of labor impossible;
- unless otherwise envisaged by the employment agreement, long term disability – if such term exceeds thirty calendar days in succession, or over six months total term exceeds fifty calendar days, thereby, employee is entitled to take a leave envisaged by Article 21 of the present Code;
- death of the employer being a physical person or of an employee;
- commencement of liquidation of the employer being a legal entity.
Employees generally must provide 30 days notice to employer in writing if they wish to terminate employment.
If the employee is terminated by the employer, s/he is owed a severance of at least one month’s wages.
Georgia has a 15% corporate profit tax and an 18% VAT. There is no social security tax.
Georgia Health Insurance Laws
There is no mandatory health insurance in Georgia. The poor and elderly receive healthcare vouchers from the government, but the majority of citizens can opt either to purchase insurance or go without.
Employment Contracts in Georgia
It is best practice, although not legally required, for employment contracts to be executed in writing, and they can be for definite or indefinite terms. Contracts should be in Georgian and should spell out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Georgia should always state the salary and any compensation amounts in lari rather than a foreign currency.
This information is provided as generally accepted information and is not intended as advisory services.
Why Globalization Partners
Establishing a branch office or subsidiary in Georgia to engage a small team is time-consuming, expensive and complex. Georgian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Georgia. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Georgia PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Georgia, please contact us.