Georgia
Run your business seamlessly with NH Consulting as we help you go beyond borders to manage your international payroll and hire new talent in Georgia.
Employer of record in Georgia
You may opt for addressing to an employer of record in case if you are in a hurry or don’t have enough local expertise when expanding to or employing workers in Georgia to achieve your global growth objectives.
With the help of an international PEO, or an employer of record, you will be able to hire and onboard workers in Georgia (often as quickly as in two weeks) and get free from the cost and risk of establishing a local entity.
Your international employment needs, as well as the processes of hiring, employment, payroll and meeting the requirements for workers in Georgia can be managed by our local HR experts.
Hiring in Georgia
The success of your business venture depends on finding and hiring the right employees, especially in case of an international expansion. Nevertheless, international companies usually have some challenges concerning hiring the best employees in Georgia.
The language barrier is first and foremost. It’s sometimes challenging to communicate with prospective employees in countries such as Georgia, where they don’t speak English as widely. An overwhelming and time-consuming process of hiring and recruiting employees per the local laws is the second challenge. Uncalled-for fines can be the result of the oversight in compliance with the local legislation.
You can choose a collaboration with a global EOR service for Georgia to get all necessary support with all hiring- and recruitment-related compliances on your behalf when hiring employees in Georgia.
All the complicated tasks related to payroll management and taxes in compliance with the local laws can be handled by us in order to let you focus on other aspects of global expansion. You can learn a lot about hiring in Georgia from NH Consulting experts.
Employment in Georgia
The Labor Code of Georgia governs the labor laws in the country, and such organizations can have difficulties with understanding the peculiarities of the local labor and employment legislation.
You will avoid non-compliance due to oversight if you tie up with a local partner well experienced in local legislation. The hiring process will be streamlined by NH Consulting Georgia EOR solutions in a 100% compliant and efficient manner.
Georgia has the standard workweek of 40 hours (eight hours per day), but it is decreased to 36 hours for employees aged between 16 to 18 years and to 26 hours for employees aged between 14 to 16.
Georgian employees get compensation at the rate of 150% of the basic wages for working overtime, but it must not exceed 48 hours a week, and at least 12 hours rest between consecutive workdays must be ensured by employers.
They determine holiday pay depending on the average pay for the previous three months.
No paid or unpaid medical leave is mandated by Georgian law for private employers, but medical leave is granted by most employers as a benefit.
Full-time employees must be provided with five hours of medical leave on a semi-monthly basis and 10 hours of medical leave on a monthly basis.
Social Security pays for maternity leave in Georgia. A total of 730 days of maternity and childcare leave is received by employees. 183 calendar days are paid (200 in case of multiple births).
550 days of parental leave are given to employees in case of adoption (Social Security covered 90 days out of these).
24 days of paid annual leave must be provided to all employees. Another 15 days of (unpaid) annual leave can be claimed by employees who have served for more than 11 months.
Extra 10 days of annual leave must be given to employees working in hazardous occupations.
Annual leave from the previous year, but not for more than two consecutive years, can be carried over by employees in case of agreement with the employer.
It is possible to cash out accrued annual leave upon termination of employment in Georgia.
Employer can provide the employee with payment instead of the leave in case if the latter has used their annual leave upon termination of the employment contract.
All employees are protected against any kind of discrimination based on race, language, skin color, ethnicity, social status, nationality, origin, handicap, religious preference, age, sex, sexual orientation, marital status, and political opinions by the Georgia Labor Laws.
The Law of Georgia on Personal Data Protection, intended to ensure the protection of the right to privacy, protects the personal information shared by the employees with their employers.
Employment contracts in Georgia
Georgia’s employment laws require that employment contracts should be in the Georgian language and executed in written form to ensure transparency and clarity of the terms of the employment.
It is possible to enter into employment agreements for both a definite or indefinite duration in Georgia. The agreed-upon employee compensation (in GEL), additional employment benefits (if there are any), terms of termination, duration of contract (in case of definite contracts), nature of the work that employees are expected to deliver and other relevant information, such as notice and probation periods, must be clearly stated in contracts, written in Georgian or any other language that both parties can understand.
A basic, non-intrusive background check of the employees by requesting essential information such as criminal records, driving records, details of the previous employers as a reference, and credit checks can also be run by employers, although it is not standard practice.
Advantages of Hiring Full-time Employees
These are loyalty, knowledge and legal freedom. Firstly, working exclusively for your company makes full-time employees loyal and committed to your organization. Dependence of their individual success on the performance of your firm makes them work harder.
Secondly, the organization keeps a full-time employee’s skills and knowledge.
Thirdly, the terms of the contract and entitlements are determined by the contract at the moment of hiring full-time employees and can’t be changed without mutual decision of the both parties.
International companies that have no local liaison offices can have difficulties with drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Georgia, but templates of employment contracts assuring a compliant hiring and onboarding of the employees are included in NH Consulting comprehensive EOR solution for Georgia. NH Consulting experts can give you more information about hiring the best Georgian talent on both a contractual and full-time basis.
Payroll & Taxes in Georgia
A payroll must be set up by foreign companies in order to recruit employees in Georgia and manage their compensation and other benefits following the local labor legislation. One of the following four ways can be chosen to do it. Firstly, you can incorporate a separate legal entity and handle the payroll management with an in-house HR department. Secondly, a remote payroll can be set up by adding your Georgian employees to your parent company’s payroll. Thirdly, you can entrust your payroll outsourcing in Georgia to a local company that handles HR tasks, but in this case, you will be in charge of liabilities. Fourthly, you can opt for payroll outsourcing in Georgia with a global EOR service such as NH Consulting, which can ensure total compliance with the local laws while handling your payroll while.
It can take up to months to complete the process of setting up a separate legal entity in compliance with the local legislation. Moreover, it’s necessary to deeply understand the nitty-gritty of laws of the land to handle the tax and other allied compliances before you set up a business. Nevertheless, payroll management and other local tax-related compliances can be handled by a local EOR partner in Georgia such as NH Consulting on your behalf.
They tax personal income at a flat rate of 20%.
The following individuals must submit individual income tax returns by before April 1 or on March 31, each year.
Resident individuals, also including international citizens with Georgian tax residency and whose income is not taxed at the source of payment in Georgia.
Non-resident individuals, such as people whose Georgian-source income is not subject to taxation at the source of payment.
The calendar year is the financial year in Georgia.
Flat 15% is the Corporate Income Tax (CIT) rate in Georgia.
They levy withholding taxes from non-resident enterprises per the following rates: dividends (5%), interest (5%), royalties (5%), oil and gas subcontractor income (4%), international transportation/ communication (10%), income from services rendered in Georgia (10%), other Georgian-source income (10%), Georgia Employer Payroll Taxes/Georgia Payroll Tax Rates (20%), value-added Tax (VAT) (18%).
Employers Social Security and statutory contributions and employees Social Security and statutory contributions are not taxed.
Employees, employers and the government finance a pension scheme that all Georgian employees must join. Employer’s contribution is 2%, self-employed individuals’ contribution is 4%, government contribution consists of 2% (income less than GEL 24,000); 1% (income between GEL 24,000 AND GEL 60,000) and GEL 60,000 (income greater than GEL 60,000).
According to the law, employee health benefits in Georgia are not mandatory.
Termination & Probation in Georgia
Probationary Period in Georgia
A clause defining a probationary period can be added by employers (with mutual agreement with the employees) in Georgia employment contracts to ensure that the employee is well-suited for the job that they are hired for. The standard probation period cannot, in any case, be longer than six months, even though it is not defined in Georgia.
Termination of employment Georgia
It is possible to terminate employment contracts in Georgia if the employment obligations don’t meet with the employment contract. Another reason is expiration of definite employment contracts. If the terms of the contract are violated by either party or the contract has been recognized as invalid for some reason, it can also be terminated. Force majeure or mutual agreement between the parties can also lead to the contract’s termination, as well as an employee’s long-term disability (longer than 40 consecutive days or 60 days in six months), death or the employer or the employee or liquidation of the legal entity.
A notice period of 30 days must be served by the terminating party. It is possible to terminate employment contracts without serving the notice period only during the probationary period.
NH Consulting experts can ensure your expansion endeavors adhere to the laws regarding probation and termination in Georgia.
EOR Solution in Georgia
It can be expensive and time-consuming to expand your business operation beyond your national borders task due to several complex procedures included in its completion. Partnering with a Georgia EOR service will help you expedite and simplify the expansion process.
Business expansion in Georgia with the help of NH Consulting EOR solution for Georgia will be quick and hassle-free. The monthly tasks of managing payroll and employee benefits and other hiring-related matters, such as tax compliance, employment contracts, work permits are well taken care of by our HR services.
NH Consulting experts can offer you tailor-made EOR solutions for all your expansion needs in Georgia.
Some reasons why you should work with us:
- Active in Eurasia since 2001
- Dutch owned and Dutch managed
- We speak English, German, Dutch
- Group companies in Kazakhstan, Serbia, Georgia, Ukraine
- Our specialists understand very well the local requirements and the international standards
- Our staff is flexible and customer-oriented
- NH Consulting will consult you and offer you the best solution according to your needs
- We will provide you with all necessary assistance and support through our local offices
- Our staff is friendly and will help you to solve your challenges with pleasure!
We are trusted by international companies since 2001
Please describe in detail which service you are interested in. We are here to support you!
You can place an inquiry through info@nh-consulting-services.com to receive an initial consultation.