Business & Taxes
Labor Contracts in Georgia: The Complete Guide (+ Free Templates in English, Russian & Georgian)
If you are hiring in Tbilisi, Batumi or anywhere else in Georgia, employing staff through a local company, or relocating and signing on as an employee, this is the page for you.
Georgia has one of the simplest and most employer-friendly labor systems in the region: a flat 20% income tax, roughly 2% payroll overhead, and a Labour Code that leaves a lot to the agreement between the parties. That freedom is exactly why the written contract matters so much. What you do not write down, you usually cannot rely on later. If you are still setting up the hiring side, get familiar with Georgia's business structures first.
This guide walks through everything a valid Georgian employment contract needs, based on the Organic Law of Georgia, the Labour Code of Georgia (as amended through the 2020 reform). At the bottom you can download ready-to-use templates in three formats: English/Georgian, Russian/Georgian, and Georgian only.
This guide walks through everything a valid Georgian employment contract needs, based on the Organic Law of Georgia, the Labour Code of Georgia (as amended through the 2020 reform). At the bottom you can download ready-to-use templates in three formats: English/Georgian, Russian/Georgian, and Georgian only.
Just looking for the templates? Grab them here:
The short version
A written contract is required for any employment lasting longer than 3 months, and always when there is a probation period. Use one every time.
It must contain a defined set of essential terms (parties, role, pay, hours, term, leave, notice).
It must be in a language both parties understand. A bilingual contract with a "prevailing language" clause is best practice for foreign employers.
Standard week is 40 hours, paid annual leave is 24 working days, income tax is a flat 20%.
To dismiss an employee you generally need a lawful ground plus 30 days notice and 1 month severance (or 3 days notice and 2 months severance).
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Do you need a written employment contract in Georgia?
Technically, Georgian law recognizes both oral and written employment agreements. In practice you should always use a written contract, for three reasons:
The law requires writing above 3 months. Any employment relationship expected to last longer than three months must be in written form. A probation period also must be agreed in writing.
Evidence. Georgian labor disputes are decided on what can be proven. An oral agreement on salary or duties is very hard to enforce.
Tax and immigration. A written contract is what your accountant files against, and what supports a work-based residence permit application for a foreign hire.
Individual employment contracts do not need to be registered with any government body. You sign, you keep copies, you are done.
What must a Georgian employment contract include?
Under the Labour Code, a written contract should set out at least the following essential terms. Leaving one out does not automatically void the contract, but it creates exactly the ambiguity that ends up in front of a judge.
The parties. Full legal name and identification/registration number of the employer, full name and personal number of the employee.
Start date (and end date, if the contract is fixed-term).
Position and type of work, with a description of duties.
Place of work (a fixed address, "remote", or "hybrid"). If you take on remote workers, keep their tax position in mind.
Working hours and rest time.
Remuneration: the amount, the currency (GEL by default), the pay date, and the method of payment.
Overtime compensation.
Duration and procedure for paid and unpaid leave.
The term of the contract (fixed or indefinite).
Fixed-term vs indefinite contracts
Georgia recognizes two contract types:
Indefinite (open-ended). The default. No end date.
Fixed-term. Has a defined end date or is tied to a specific task.
There are two rules foreign employers get caught by:
A fixed-term contract of one year or longer needs an objective justification, for example seasonal work, a specific project, a temporary spike in workload, or covering for an absent employee.
A fixed-term relationship cannot run beyond 30 months. If renewals push continuous employment past 30 months, or if you sign two or more consecutive fixed-term contracts that together exceed that period, the contract is treated as indefinite by operation of law. You cannot keep someone on rolling six-month deals forever.
How long can a probation period be in Georgia?
Maximum 6 months.
It must be in writing and can be used only once with the same employee.
It is paid (probation is not free labor).
During probation, either side can end the contract with no notice and no severance. This is the one window where dismissal is genuinely simple, so use it deliberately.
Working hours, overtime and rest
Standard working week: 40 hours.
Maximum, including overtime: 48 hours per week.
Overtime is paid at a minimum of 125% of the normal hourly rate, unless you agree something more generous.
Employees are entitled to a daily rest between shifts and a weekly rest period.
Work at night (broadly 22:00 to 06:00) and on public holidays attracts a premium.
For roles with irregular schedules, define the working-time regime explicitly in the contract. The Code gives you room to structure this, but only what you write down applies.
Leave entitlements
Leave type | Entitlement | Who pays |
|---|---|---|
Paid annual leave | 24 working days per year | Employer |
Unpaid leave | 15 calendar days per year | Unpaid |
Sick leave | First days by employer, then state social insurance | Employer, then state |
Maternity (pregnancy, birth, childcare) | 730 calendar days total, of which 183 are paid (200 for complications or multiple births) | State budget, capped at 1,000 GEL |
Annual leave is generally taken after 11 months of continuous work, though an employee can take proportional leave earlier by agreement. Unused leave normally carries over.
Pay, tax and pension: what employers actually owe
This is where Georgia is unusually light (and where the wider tax system is worth a read):
Income tax: a flat 20%, withheld by the employer from the employee's salary (see how payroll taxes work in Georgia).
Pension: 2% employer + 2% employee, with a 2% state top-up, for Georgian citizens and permanent residents. Foreign nationals working on a permit are generally exempt from the pension scheme.
Minimum wage is a nominal 20 GEL per month, a figure unchanged since the 1990s and effectively symbolic. Real market wages are set by agreement, and your contract salary is what governs.
Salaries are paid monthly, in GEL, unless you agree otherwise.
State the gross salary in the contract and note that statutory taxes and contributions are withheld, so there is no argument later about "net vs gross."
Hiring a contractor instead of an employee? For many freelance roles the 1% Individual Entrepreneur regime is cheaper for both sides than payroll. It is a genuinely different relationship, though, so do not paper a real contractor with an employment contract.
How do you legally terminate an employment contract in Georgia?
You cannot simply fire at will once probation is over. You need a lawful ground plus the correct notice and severance.
Common lawful grounds include:
Economic, technological or organizational changes (redundancy).
Expiry of a fixed term.
Gross violation of contractual duties (this one allows dismissal without notice).
Long-term incapacity (broadly, more than 40 consecutive days, or 60 days in a six-month period).
Professional inadequacy for the role.
Agreement of the parties.
Prohibited grounds: discrimination, being called up for military service, and pregnancy or maternity leave.
Notice and severance for an employer-initiated dismissal:
30 calendar days written notice + at least 1 month's salary as severance, or
3 calendar days written notice + at least 2 months' salary as severance.
Severance is paid within 30 calendar days of termination.
All final amounts owed are settled within 7 calendar days.
An employee who resigns gives 30 calendar days notice.
During probation, no notice or severance is required from either side.
A mass layoff (100+ employees within 15 days) triggers extra duties, including 45 days notice and notifying the Ministry.
Why your Georgian contract should be bilingual
The Labour Code requires the contract to be in a language both parties understand. If you are a foreign employer or hiring a relocant, that almost always means a bilingual document.
Two practical rules:
Put the two languages side by side so both parties genuinely read the same terms.
Add a prevailing-language clause stating which version controls if the translations ever diverge. For a contract governed by Georgian law and potentially argued in a Georgian court, the Georgian version usually should prevail, even if the working language is English or Russian.
This is exactly why the templates below come as English/Georgian and Russian/Georgian pairs, plus a Georgian-only version for fully local hires.
How to complete and sign the template (step by step)
Pick the right version. English/Georgian for international hires, Russian/Georgian for Russian-speaking relocants, Georgian-only for local staff.
Fill the party details: legal names, ID/registration numbers, addresses.
Set the term: choose indefinite or fixed-term, and add an end date and justification if fixed.
Complete pay, hours, probation and leave, deleting the bracketed options you do not use.
Review the prevailing-language clause and confirm which version controls.
Sign two originals, one for each party. No notarization or state registration is required for a standard employment contract.
Keep copies with the employee's ID and any job description or annexes.
Download the templates
Three ready-to-edit Word files, all built on the essential terms above:
Frequently asked questions
Is an oral employment agreement valid in Georgia?
For very short engagements, yes, but for anything over three months or involving probation the law requires writing, and a written contract is always easier to enforce. Use one every time.
Does the contract have to be in Georgian?
It has to be in a language both parties understand. A bilingual contract satisfies this and protects you in a local dispute, which is why a Georgian-language column plus a prevailing-language clause is recommended.
Can I pay salary in USD or EUR?
You can agree a foreign-currency reference, but salaries are conventionally stated and paid in GEL, and tax is calculated in GEL. State the currency clearly in the pay clause.
How much notice do I have to give to fire someone?
Outside probation, either 30 days notice with one month severance, or 3 days notice with two months severance, and only on a lawful ground.
Do foreign employees pay into the Georgian pension fund?
Generally no. The 2% pension contribution applies to Georgian citizens and permanent residents. Foreign hires on a work permit are usually exempt.
Does the contract need to be notarized?
No. A standard individual employment contract does not need notarization or registration with any state body.
Disclaimer. This guide and the attached templates are general information, not legal advice, and are based on the Labour Code of Georgia as amended through 2020. Labor law changes and individual situations vary. Have the final contract, and especially the Georgian-language text, reviewed by a licensed Georgian lawyer before you rely on it.
Primary source: Organic Law of Georgia, Labour Code of Georgia, official English text at the Legislative Herald of Georgia (matsne.gov.ge, document 1155567).
