The Labour Code of Georgia (the Labour Code) forbids contractual terms that weaken employee protections and declares them void. Employers must ensure that termination decisions respect equality and non-discrimination. This means providing equal treatment, preventing harassment, offering reasonable accommodation, and carrying the burden of proof in discrimination disputes.
Grounds for Termination
The Labour Code provides an exhaustive list of lawful grounds for termination. Employers must clearly match the termination reason to the facts and provide supporting evidence. Business-related grounds for termination include redundancy caused by economic, technological, or organisational changes. It also includes the liquidation of the employer. The transfer of an undertaking alone does not justify termination. Employers may not dismiss employees based solely on this reason.
Contractual or time-based grounds for termination arise upon the expiry of a fixed-term agreement or the completion of specific work. Termination can also occur at the employee’s initiative, either by voluntary resignation with written notice or by mutual written agreement.
Performance and disciplinary grounds include mismatches between an employee’s skills and job requirements. They also cover gross rule violations or repeated minor violations within a year. Employers may rely on internal labour regulations for dismissal only if they explicitly include them in the employment agreement.
Other grounds include incapacity, legal impossibility, and strike-related decisions. For example, long-term incapacity for work, defined as more than 40 consecutive calendar days or more than 60 days in six months after the employee has used their annual paid leave, may justify termination. A court judgment preventing work or a final decision declaring a strike illegal may also justify dismissal.
Finally, the Code also permits termination for other objectively justified reasons, but these require clear written notice and scrutiny.
Employers hiring foreign employees should be aware of specific Legal Requirements for Hiring Foreign Employees in Georgia, which include compliance considerations around contracts and termination
Prohibited Grounds and Employee Protections
The Labour Code forbids termination for any reason not listed in the Code or for discriminatory grounds. Special protection applies to employees during pregnancy and related family-protection periods. From the moment an employee notifies the employer of her pregnancy until the end of the relevant leave period, employers generally may not terminate her. Only limited exceptions apply for specific grounds. Employers may not dismiss an employee in retaliation for filing a discrimination complaint. They also cannot treat the employee negatively for cooperating with such a complaint.
For certain grounds, such as redundancy, skills mismatch, long-term incapacity, and other objective circumstances, the Labour Code sets notice requirements. Employers must provide at least 30 calendar days’ written notice with severance pay of at least one month’s remuneration. Alternatively, they can provide at least 3 calendar days’ written notice with severance pay of at least two months’ remuneration. For other grounds, employers have no statutory notice or severance obligation unless the contract or law requires it.
Employees who receive a termination notice may request a written explanation of the reasons within 30 calendar days. The employer must provide this substantiation within 7 calendar days of the request. When substantiation is provided, the employee has 30 calendar days from receipt to initiate legal proceedings. Should the employer fail to provide substantiation, the employee may bring a claim within 30 calendar days after the employer’s 7-day response period, with the burden of proof shifting to the employer. When the employee does not request substantiation, they have 30 calendar days from the notice date to challenge the termination.
Practical Considerations and Common Pitfalls
When terminating for a skills or qualifications mismatch, employers must provide objective evidence that the employee does not fit. This requires using up-to-date job descriptions, performance evaluations, and documentation of training or reasonable accommodations. Employers must also apply standards consistently across comparable employees to minimise discrimination risk.
Employers must provide objective evidence showing the need to reduce the workforce due to economic, technological, or organisational changes. This evidence should clearly establish the link between the cited circumstances and the decision to terminate employment contracts.
For misconduct grounds, a gross violation may justify immediate termination. Non-gross violations require a prior disciplinary measure within the past year. Employers must include internal labour regulations in the employment agreement, inform employees of all rules or changes, and apply sanctions proportionally and consistently. Adequate investigation and record-keeping are also essential.
In cases of long-term incapacity, employers should confirm the relevant medical evidence, monitor the applicable day thresholds, and verify that the employee has used their annual paid leave. Employers must consider reasonable accommodation before proceeding with termination.
Upon termination, employers must pay all amounts owed to the employee within seven calendar days, unless the contract or law specifies otherwise. This includes payment instead of any outstanding leave in cases of employer-initiated termination. Interest accrues on delayed payments at a rate of 0.07% per day, although this does not apply to court-awarded lost earnings. Upon request, employers must also issue a certificate of employment detailing the work performed, remuneration, and duration of employment.
In summary, lawful termination of employment in Georgia requires strict adherence to the exhaustive grounds set out in the Labour Code, careful documentation, and compliance with procedural safeguards such as notice, severance, and substantiation requirements. Employers must ensure that their decisions are non-discriminatory, respect special protections for vulnerable groups, and are supported by objective evidence.