A Deep Dive into Georgian Labor Law: Comprehensive Insights from a Recent Training

In the world of business, we often talk about written rules—the contracts, the regulations, the official codes. But the real rules are often unwritten, shaped by judicial interpretation and the practical realities of disputes. When it comes to labor law in Georgia, understanding this unwritten context isn't just an advantage; it's essential for survival, whether you're an employer or an employee.

I've spent a lot of time digging into this topic, and I want to share some of the most critical, and often surprising, principles that define the landscape today.

The Core Philosophy: The Court Is on the Employee's Side

Let's start with the most important principle: Georgian courts fundamentally view the private-sector employment relationship as an unequal one. They see an inherent power imbalance that favors the employer, and much of their work is aimed at correcting it. This pro-employee stance is the filter through which almost every other issue is viewed.

It's Not a Job if You Call It a "Gig," Right? Wrong.

The line between a formal employee and a freelancer is one of the most contentious areas today. You can't simply call someone a "consultant" or "gig worker" to avoid labor law obligations. The courts look at the reality of the relationship.

The key factor is control. Does the company dictate the work schedule and methods? Is the individual integrated into the company's hierarchy? A fascinating modern example is the remote IT specialist who is expected to be "on call" and respond within minutes. Despite being remote, their time is effectively owned by the company. In the eyes of the court, this is not a service agreement; it's employment.

This extends to liability. I saw a case where a company tried to make its distributors personally liable for any and all damages. The court pushed back, ruling that the distributor could only be held liable if their own fault was proven—they couldn't be a scapegoat for others' mistakes.

The Boundaries of Power: What an Employer Simply Cannot Do

Freedom of contract is a powerful principle, but it stops where coercion and fundamental rights begin.

• Forced Labor Isn't Just Chains: We're not talking about historical slavery. In the legal sense, forced labor can be as subtle as assigning an employee extra, punishing work as a sanction for a mistake.

• Outrageous Penalties are Void: I learned of a case where a company included a $1,000,000 penalty in a preliminary agreement if the person didn't sign the final employment contract. The court struck it down, viewing it as a tool of coercion, not a legitimate contractual term.

• You Can't Punish a Strike: The right to participate in a legal strike is protected. Any penalty an employer imposes for this is illegal. Full stop.

• "Voluntary" Resignation Isn't Always Voluntary: If an employee resigns because of a hostile environment—constant insults, pressure, harassment—it can be deemed a constructive dismissal. The court can invalidate the resignation and award compensation. In these cases, it’s even possible for a secret recording made by the employee to be admitted as evidence to prove the coercion.

The Devil in the Details: Contract Terms, Overtime, and Probation

The day-to-day management of employment is filled with legal tripwires. Here are some of the most important ones:

Contract Terms & Communication

A court can invalidate a standard term in your company's boilerplate contract on its own initiative if it finds it shockingly unfair. For individually agreed terms, however, it will only act if a party requests it. And yes, you can officially share internal regulations with employees via email.

Overtime

To get paid for overtime, an employee needs to prove there was an agreement for it—either an explicit request from the employer or by showing the assigned task was impossible to complete in regular hours. A symbolic pay increase of 1 Tetri is no longer enough; a raise of 20-25% is the emerging standard.

The Probationary Period

This is one of the most misunderstood tools.

1. You cannot put an employee on probation for a promotion. A promotion is the reward for proving oneself. If the employee fails in the new role, the proper action is to return them to their old position, not fire them.

2. When terminating a contract during probation, the smartest move is to state no reason. The law allows this. If you write "failed to perform duties," you now carry the burden of proving that failure in court.

3. Even during probation, the reason for dismissal can't be arbitrary or discriminatory. I heard about a bank employee let go for saying "God bless you" to customers. The court found this an overreach, suggesting a transfer would have been more appropriate than dismissal.

This is just a snapshot, but it paints a clear picture. The legal framework in Georgia is actively working to protect the employee, and employers must navigate this reality with diligence, fairness, and a deep understanding of not just the written law, but the way it's being applied in practice every single day.