Georgia Employment Guide

Navigating Employee Termination in Georgia: A Guide for International Employers

Terminating an employment contract in a foreign jurisdiction requires meticulous attention to local legal frameworks. In Georgia, the process is governed by specific regulations that differ significantly from 'at-will' employment models. For professionals operating outside the probationary period, employers must demonstrate valid grounds for dismissal, ensuring compliance and mitigating legal exposure.

Permissible Grounds for Termination

Georgian labor law outlines clear pathways for ending an employment relationship. Understanding these categories is the first step toward a compliant separation.

• Voluntary Resignation: Initiated by the employee.
• Employer-Initiated Termination: This requires a justified basis, such as:
  • Dismissal during the probation period.
  • Termination for objective reasons (e.g., redundancy).
  • Dismissal on disciplinary grounds.
• Contract Expiry: Conclusion upon reaching the agreed end date.

Mandatory Notice Periods

The required advance notice varies depending on the termination scenario. Adhering to these timelines is crucial for procedural correctness.

• Termination with Cause / Resignation: 30 calendar days.
• Probationary Period Dismissal: No statutory notice is required.

Severance Pay Obligations

A key financial consideration in Georgia is the universal right to severance pay for terminated employees, typically equivalent to one month's base salary. For instance, a company restructuring its operations in Tbilisi must budget for this liability for all affected staff.

To safeguard international businesses from unforeseen financial liabilities, SailGlobal integrates severance accruals into all employment agreements for Georgia. Our approach is informed by deep expertise in managing global litigation risks, with calculations based on statutory requirements and local best practices. Should an employee resign or otherwise be ineligible for severance, any unused accrued funds are returned to the client.

Case Study: Mitigating Risk in a Market Entry

Consider a European tech firm launching an office in Georgia. By partnering with a global HR solutions provider like SailGlobal from the outset, the company can ensure its termination policies are pre-emptively aligned with local law, avoiding costly disputes and protecting its employer brand.