Employer of Record in Georgia

Business expansion to Georgia is simple and hassle-free with Marzuna’s Employer of Record Georgia (EOR) solutions. Without the need to establish a distinct legal company, businesses may hire incredibly competent workers in Georgia thanks to our innovative HR platform. By taking care of taxation, payroll, and other regulatory compliances, it simplifies the recruiting and onboarding of remote workers. Set up a demo with Marzuna right now.

Overview of Georgia

• Population: 3.7 million (2020)
• Currency: Georgian lari (GEL)
• Capital city: Tbilisi
• Languages spoken: Georgian and 13 other regional languages
• Gross Domestic Product (GDP): USD 19.9 billion (2020)

Employment Landscape in Georgia

Georgia, situated at the crossroads of Asia and Europe in the Caucasus region, boasts a strategic location with the Black Sea to the west, Russia to the north, and neighboring Azerbaijan, Armenia, and Turkey to the south. This geographical advantage provides Georgia with a unique platform for economic growth and development.

While the years immediately following its independence from the Soviet Union in 1991 were marked by civil unrest and political turmoil, Georgia’s pro-western policies have had a profound impact on its economic landscape.

In the current business environment, many multinational organizations are gearing up to hire international employees and establish remote teams in Georgia. Navigating the intricacies of local labor and employment legislation, as dictated by the Labor Code of Georgia, can be a challenge for these organizations.

In such scenarios, collaborating with a local partner well-versed in the nuances of local legislation is a prudent strategy to avoid compliance pitfalls. Marzuna’s Georgia Employer of Record (EOR) solutions offer a streamlined approach to the hiring process, ensuring efficiency and 100% compliance, thus facilitating the seamless expansion of your business in Georgia.

Here are some relevant aspects of employment in Georgia.

Entitlement	Explanation
Statutory Working Hours	In Georgia, a workweek typically consists of 40 hours, or eight hours every day. On the other hand, 16 to 18-year-old workers are limited to 36 hours a week of employment. Workers between the ages of 14 and 16 are limited to 26 hours per week of labor.
Overtime Eligibility	In Georgia, overtime pay is calculated at a rate equal to 150% of base pay for employees. Employers must make sure that there is at least 12 hours of respite in between workdays, and overtime cannot exceed 48 hours per week under any circumstance.
Paid Public Holidays	The paid public holidays observed in Georgia are as follows. New Year’s Day: January 01, 2021 Orthodox Christmas Day: January 07, 2021 Orthodox Epiphany: January 19, 2021 Mother’s Day: March 03, 2021 International Women’s Day: March 08, 2021 National Unity Day: April 09, 2021 Orthodox Easter Sunday: May 02, 2021 Orthodox Easter Monday: May 03, 2021 Victory Day: May 09, 2021 Independence Day: May 26, 2021 Mariamoba (Assumption): August 28, 2021 Svetitskhovloba (Georgian Orthodox Festival): October 14, 2021 Giorgoba (St George’s Day): November 23, 2021
Holiday Pay	The holiday pay is determined based on the average pay for the previous three months.
Maternity Leave	While Georgian law does not require paid or unpaid medical leave for private businesses, the majority of firms do offer medical leave as a benefit. If a full-time employee’s pay is semi-monthly, public employers are required to provide five hours of medical leave; if their pay is paid monthly, they must provide ten hours.
Maternity Leave	Social Security covers maternity leave in Georgia. 183 calendar days of the 730 days of maternity and childcare leave that employees are entitled to are compensated (200 in the event of multiple births). In the event of adoption, employees are also entitled to 550 days of parental leave, of which 90 days are paid for by Social Security.
Annual Leave Accrual Entitlement	Every employee has the right to 24 days of paid yearly leave. Over 11-month employees are eligible to an additional 15 days of unpaid yearly leave. Workers in dangerous jobs are entitled to an additional 10 days of paid time off each year.
Leave Expiry	If there is a written agreement between the company and the employee, then the employee may carry over their unused annual leave from the prior year. It is not possible to carry over the leaves for more than two years in a row.
Leave Cash Out	In Georgia, paid yearly leave can be redeemed when leaving a job.
Accrued Leave at Termination	The employee is entitled to reimbursement in lieu of their yearly leave in the event that their employment contract is terminated before their leave has been utilised.
Employee Protection and Anti-discrimination Rights	Any kind of discrimination against any employee on the basis of race, language, skin color, ethnicity, social position, nationality, origin, disability, religious preference, age, sex, sexual orientation, marital status, or political beliefs is prohibited under the Georgia Labor Laws.
Confidentiality of Personal Information	The Law of Georgia on Personal Data Protection, which aims to safeguard the protection of the right to privacy, protects the personal information that workers provide with their employers.

Contractors vs. Full-time Employees

In accordance with Georgia’s employment laws, employment contracts may be established in either written or oral formats. However, to ensure clarity and transparency regarding the terms of employment, it is strongly recommended to execute written employment contracts.

Employment agreements in Georgia can be established for either a definite or indefinite duration. These contracts must be in Georgian or any other language mutually understood by both parties. They should explicitly outline the following terms of employment:

• Agreed-upon employee compensation (in GEL).
• Any additional employment benefits.
• Termination conditions.
• Duration of the contract (in the case of definite contracts).
• Nature of the work expected from employees.
• Other pertinent information, including notice and probation periods.

While it is not customary, employers have the option to conduct a basic, non-intrusive background check on employees. This may involve requesting essential information such as criminal records, driving records, contact details of previous employers for references, and credit checks.

Advantages of Hiring Contractors:

• Flexibility: Contractors are ideal for short-term, project-based work. You can easily define the scope of their responsibilities for the duration of the contract, and if new needs arise, additional contracts can be readily arranged.
• Independence: Short-term contractors typically work independently, requiring minimal supervision. This allows your resources to be allocated more efficiently elsewhere.
• Cost-Efficiency: While individual contractor rates may be higher than those of full-time employees, hiring contractors can be more cost-effective in the long run, as they are not entitled to employment benefits like bonuses and tax compensations.

Advantages of Hiring Full-time Employees:

• Loyalty and Organizational Commitment: Full-time employees are more likely to demonstrate loyalty, as they are exclusively dedicated to your company. Their success is intrinsically linked to your organization’s performance, motivating them to invest more effort into their work.
• Knowledge Retention: Full-time employees undergo training upon joining a company, and the skills and knowledge they acquire remain within the organization.
• Legal Clarity: By hiring full-time employees with clearly defined contracts from the outset, you can prevent misclassifications. You have the freedom to establish the terms and entitlements in full-time employment contracts, which remain stable unless mutually modified by both parties.

Creating comprehensive employment contracts that align with Georgia’s employment contract laws can be a demanding task, especially for international companies lacking local liaison offices. Marzuna’s extensive Employer of Record (EOR) solution for Georgia includes ready-made employment contract templates, facilitating the compliant hiring and onboarding of employees.

Recruiting in Georgia

Effective recruitment and hiring are paramount to the success of your international business venture, particularly when expanding into a new market like Georgia. However, international companies often encounter several challenges when seeking to hire top talent in this unique environment.

One of the primary challenges is the language barrier. In countries like Georgia, where English may not be widely spoken, effective communication with prospective employees can be a hurdle. Additionally, navigating the intricacies of local labor laws and ensuring compliance can be a time-consuming and complex process. Any missteps in adhering to local legislation may result in unwarranted fines.

When looking to hire employees in Georgia, you have several options:

• Collaborate with a Local Recruitment Agency: This involves engaging a local agency well-versed in the Georgian job market to assist with recruitment.
• Establish a Separate Legal Entity: Setting up a local legal entity with an HR department to manage recruitment and payroll compliance is another approach.
• Partner with a Global Employer of Record (EOR) Service: This option involves teaming up with a global EOR service tailored for Georgia, capable of handling all aspects of hiring and recruitment compliance on your behalf.

Many employers in Georgia post their job openings on websites and portals, including:

• myjobs
• ge
• https://www.hr.ge/

Marzuna offers comprehensive and hyper-localized Employer of Record solutions for Georgia, simplifying the hiring process and minimizing hassles. We take care of the complex tasks related to payroll management and taxation while ensuring full compliance with local laws, allowing you to focus on other critical aspects of your global expansion efforts. This strategic partnership streamlines your international recruitment, enabling you to build a skilled and efficient team in Georgia.

Probation & Termination

Probationary Period:

In Georgia, employers have the option to include a probationary period clause in employment contracts, subject to mutual agreement with the employees. While the standard probation period duration in Georgia is not strictly defined, it cannot exceed six months under any circumstances.

Termination of Employment:

Employment contracts in Georgia may be terminated for various reasons, including:

• Non-fulfillment of employment contract obligations.
• Expiry of definite employment contracts.
• Violation of the contract terms by either party.
• Rendering of the employment contract invalid for any reason.
• Mutual agreement between the parties for termination.
• Force majeure events.
• Extended disability (lasting more than 40 consecutive days or 60 days within six months).
• Death of the employer or employee.
• Liquidation of the employer (legal entity).

Typically, the terminating party must provide a notice period of 30 days. Notably, during the probationary period, employment contracts may be terminated without the need for a notice period.

To ensure that your expansion efforts align with the laws governing probation and termination in Georgia, our Marzuna experts are ready to assist you. Contact us today to book a demo and navigate the intricacies of Georgia’s employment regulations effectively.

EOR Solution

Expanding your business internationally is often a complex, time-consuming, and costly endeavor, involving numerous intricate procedures. However, partnering with a Georgia Employer of Record (EOR) service can streamline and accelerate the expansion process, making it more straightforward.

Marzuna’s EOR solution for Georgia is designed to facilitate a quick and hassle-free business expansion in the country. Our integrated HR platform, combined with an extensive global payroll management network, ensures the seamless handling of monthly tasks related to payroll management, employee benefits, and various hiring-related aspects, such as tax compliance, employment contracts, and work permits.

In essence, we offer customized EOR solutions tailored to meet all your expansion requirements in Georgia. To take advantage of our services, get in touch with our Marzuna experts today.

Types of Visas in Georgia

The Georgian government offers a range of visas to accommodate international citizens visiting the country:

• Georgia Diplomatic Visa (Category A)
• Georgia Special Visa (Category B)
• Ordinary Georgia Visa (Category C)
• Georgia Immigration Visa (Category D)
• Georgia Transit Visa (Category T)

When embarking on a global business expansion, it is imperative to ensure strict compliance with the visa and work permit requirements of the destination country. This is essential to facilitate legal residence and employment for your international employees in Georgia. In this context, let’s delve into the specifics of the Georgian Immigration Visa.

Types of Work Visas	Explanation
Business Visa	The Georgian Business Visa is granted to non-residents who want to go to Georgia for business purposes or to take part in educational, cultural, or athletic events (Georgia C3 Visa).
Immigration Visa	Those who wish to enter Georgia with the goal of settling there permanently must get a Georgian Immigration Visa (Category D). The Georgia Work Visa, which is available to foreign nationals who wish to work in Georgia. The Georgia Student Visa, which is available to foreign students who have been admitted to Georgian universities. The Georgia Family Visa, which allows foreign nationals to join a family member who is a Georgian or a lawful resident of Georgia.
Georgia Work Visa Requirements	The following papers must be submitted by employees in order to apply for a Georgian work visa. duly completed and signed Georgian Visa Application Form. A passport that is still valid at least three months after the planned departure date from Georgia. Documentation proving you have the money to pay for your stay’s living costs. Specifics of lodging in Georgia. Evidence of payment for the visa. Photos the size of a passport. The employment agreement. Documentation of academic credentials.
Process of Applying for Work Visa in Georgia	Applications for visas must be filed at the diplomatic missions in Georgia. The following is the procedure to apply for a work visa in Georgia. Schedule an appointment at the consulate or embassy and submit the online visa application. Send in the necessary paperwork to back up your application. Acquire the Georgian Visa. At the time of your appointment, turn in the completed form together with the necessary paperwork at the consulate or embassy.
Georgia Work Visa Fee	A Georgian Work Visa costs EUR 20.
Processing Time	Long-term visas are usually processed in 30 calendar days.

Speak with us to learn more about the various visa categories and Georgia’s criteria for work visas. Marzuna can take care of all your visa needs and make sure there are no delays in the growth process.

Work Permits

All foreign nationals who wish to move to Georgia for an extended period of time to live and work must apply for a long-term visa. In addition to allowing the bearer of the long-term visa to work in Georgia, it also helps them apply for a residence permit, which permits them to stay in Georgia when they arrive. Keep in mind that this is an immigrant visa, or Type D.

Talk to our professionals right now to get started on your expansion and learn more about work permits in Georgia and how Marzuna can obtain them for you.

Payroll & Taxes in Georgia

When expanding your business to Georgia, managing your employees’ payroll and benefits in compliance with local labor laws is a critical aspect of your operations. Foreign companies have several options for setting up and maintaining payroll in Georgia:

• Incorporate a Separate Legal Entity: Establish a local entity and manage payroll internally with an in-house HR department.
• Remote Payroll Integration: Add your Georgian employees to your parent company’s existing payroll system.
• Payroll Outsourcing in Collaboration with a Local Company: Partner with a local company in Georgia to outsource payroll processing while retaining responsibility for legal liabilities.

Payroll Outsourcing with a Global EOR Service: Opt for payroll outsourcing through a global Employer of Record (EOR) service like Marzuna. This solution manages your payroll and ensures complete compliance with local laws.

Setting up a separate legal entity and navigating the intricacies of local legislation can be a time-consuming process, potentially taking several months. Moreover, comprehending the nuances of local tax and compliance requirements can be equally time-intensive. On the contrary, a local EOR partner in Georgia, such as Marzuna, specializes in handling payroll management and local tax compliance on your behalf, providing a more efficient and hassle-free solution.

Taxes in Georgia

Taxes	Explanation
Income Tax Rates	Personal income is taxed at a flat rate of 20%.
Tax Returns	The following people are required to file individual income tax returns by April 1st or March 31st of each year. Residents: This category also includes foreign nationals who are tax residents of Georgia and whose income is not subject to Georgian income taxes at the point of payment. Non-resident individuals: Those whose income is not subject to taxes at the point of payment since it originates in Georgia.
Financial Year-End Date	The financial year in Georgia is the calendar year.
Corporate Tax	The Corporate Income Tax (CIT) rate in Georgia is flat 15%.
Withholding Tax (For Non-residents)	Non-resident enterprises are levied withholding taxes as per the following rates. Income Withholding Tax (%) 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	Not applicable
Employees Social Security and statutory contributions	Not Applicable
Public Pension	In Georgia, all employees must join a pension scheme financed by employees, employers, and the government. Employer’s contribution: 2% Employer’s contribution (on behalf of the employee): 2% Self-employed individuals: 4% Government contribution:2% (income less than GEL 24,000); 1% (income between GEL 24,000 AND GEL 60,000); GEL 60,000 (income greater than GEL 60,000)
Medical Insurance	Employee health benefits in Georgia are not mandatory by law.

A common and highly favored approach for expanding your business into Georgia involves establishing a Georgian subsidiary company. This subsidiary structure provides the foundation for setting up a payroll system, recruiting and compensating your team in accordance with local regulations.

The Limited Liability Company (LLC) is the prevalent choice for structuring a subsidiary in Georgia. The process to incorporate an LLC in Georgia unfolds as follows:

• Register the LLC through the National Public Registry of Georgia.
• Submit all necessary supporting documents and the application form to the National Public Registry, ensuring they are made publicly available.
• Upon submission, the applicant receives a charter known as the Articles of Association.
• Fulfill all essential banking, tax, and civil compliance requirements.

While establishing a subsidiary offers numerous advantages for international expansion, it is noteworthy that the process may extend for several weeks or even months. Alternatively, you can opt for Marzuna’s Georgia Employer of Record (EOR) solutions, leveraging our established infrastructure to access the abundant business opportunities in Georgia promptly. To explore this further, connect with Marzuna experts and book a demo today!

Conclusion

If you’re ready to take your business to new heights in the global market by expanding into Georgia, Marzuna’s Employer of Record (EOR) service is your trusted partner every step of the way. We specialize in simplifying the intricate procedures related to taxes and legal compliance, allowing you to focus on employee recruitment and HR management with ease during your business expansion.

Marzuna boasts an extensive global network, providing a unified interface for onboarding and managing employees and contractors. Our pricing remains consistent, regardless of the location, and we centralize team payments through a single invoice. Rest assured, your intellectual property, invention rights, and sensitive employee information are diligently safeguarded wherever you operate.

If you’re interested in exploring how Marzuna’s technology-driven HR platform can empower your business expansion, don’t hesitate to reach out to our in-house team of global employment experts today!