Hiring in Georgia

The contract sets out role, salary in GEL, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

The contract must be in a language both parties understand. Bilingual Georgian and English contracts are common, with a clause stating which version prevails.

Fixed-term contracts of under a year need a statutory reason, and anything running past 30 months converts to indefinite, so most EORs default to indefinite terms.

Set probation in the written contract from day one. It can be used only once and cannot be extended, so agree the full length you need at the start.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

There is no statutory multiplier. A proposed 125% floor was dropped from the 2020 reforms, so the rate is whatever the contract says.

There is no earnings threshold, so senior professional hires are covered too. Put the overtime rate, or time off in lieu, in writing.

The statutory 24 days is already generous, so market practice for professional roles rarely goes far beyond it. Leave can be taken after 11 months of service, or earlier by agreement.

There is no state sickness fund, so sick pay is an employer cost. Maternity and parental pay is state funded but capped well below most professional salaries, so confirm whether the EOR tops it up.

Severance is statutory and flat. It depends on the notice route chosen, not on length of service, and is due within 30 days of termination.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and severance. The employee can ask for written reasons within 30 days and the employer has 7 days to reply, so keep a documented ground.

Contributions split 2% from the employer, 2% from the employee and up to 2% from the state, depending on salary. Private medical cover is standard for professional roles even though it is not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 2% on top of gross salary for employees in the pension scheme. That is before the EOR fee.

Late pay is the trap. Salary must go out at least monthly, and the employer owes a 0.07% penalty for each day it is late, so check the EOR's funding deadline sits well before payday.

Ask whether the EOR sponsors directly or refers to a partner. The permit is tied to one employer and one position, so the entity that applies must be the one on the contract, and a change of provider means a new application.

A visa-free stay no longer covers paid work, and the permit sits alongside a residence permit or work visa, not instead of one. Working without it risks a GEL 2,000 fine.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers abroad need an adequate destination or appropriate safeguards, and breaches must be reported to the regulator within 72 hours.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick and cheap: an LLC can be registered in a day or two with no minimum capital, and profit is taxed at 15% only when distributed. Monthly tax declarations, accounting and corporate banking still set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.