Public Health Institute of Georgia (PHIG) Contact About GILS
EN  /  KA
Knowledge · GILS

History of Labour Law
in Georgia

From Soviet-era labour regulation to EU approximation — the evolution of Georgian labour law 1991–2024.

Soviet Era (pre-1991)
Labour Under Soviet Law

Georgia's labour system before independence was governed by Soviet labour law — the KZoT (Code of Labour Laws). Employment was universal and guaranteed by the state; private employment, collective bargaining in the ILO sense, and independent trade unions did not exist. Wages were centrally set. The transition to independence in 1991 created an immediate need for entirely new labour legislation.

1991–2005: Transition Period
Independence and Initial Reform

1991 — Independence

Georgia declared independence from the Soviet Union. Soviet labour law remained in force by default. The initial period (1991–2004) was marked by civil conflict, economic collapse, and very limited labour law reform capacity.

1993 — ILO Membership

Georgia joined the ILO in 1993 and immediately ratified 14 conventions, including all 4 then-fundamental conventions, establishing the international legal framework for future reform.

1997 — Trade Union Law

First post-Soviet law on trade unions, establishing the right to organise under C087 and C098. The Georgian Trade Union Confederation (GTUC) was formally established under this framework.

2006–2012: Reform and Controversy
The 2006 Labour Code

2006 — Labour Code Adopted

A new Labour Code was adopted — widely regarded at the time as one of the most liberal (employer-friendly) in the post-Soviet space. It reduced worker protections significantly, allowing termination without stated reasons and limiting collective bargaining rights. ILO and ETUC raised concerns.

2006–2012 — ILO Criticism

The ILO Committee of Experts repeatedly cited Georgia for failures to comply with C087 and C098 due to the weak collective bargaining framework. EU approximation pressure began building.

2013–2019: EU Approximation
The DCFTA Reform Wave

2013 — Major Labour Code Reform

A comprehensive reform of the Labour Code introduced significant improvements: mandatory written contracts, grounds required for dismissal, strengthened anti-discrimination provisions, and collective agreement framework. Driven by EU Association Agreement negotiations.

2014 — Anti-Discrimination Law

The Law on Elimination of All Forms of Discrimination adopted — required as part of the EU visa liberalisation action plan. Applies to employment among other spheres.

2018 — OSH Law

The Law on Occupational Safety adopted, introducing the first comprehensive OSH framework for hazardous work. ILO C155 and C187 aligned. The 2019 Anauri mine tragedy accelerated enforcement expansion.

2019 — Funded Pension System

The accumulative pension system launched — mandatory 2%+2%+2% contributions for workers under 40. A major milestone in social protection development.

2020–Present: Deepening Reform
EU Integration and Continued Approximation

2020 — Labour Code Amendment

Further reform aligned with EU Directive 2019/1152 on transparent and predictable working conditions. Introduced written contract deadline (1 month), strengthened atypical worker rights, and improved termination rules.

2021 — Full OSH Coverage

OSH law extended to all workplaces (not only hazardous sectors). Labour inspection powers significantly strengthened.

2022–2024 — EU Candidate Status

Georgia applied for EU membership (2022) and received candidate status (2023). Labour law reform is a key chapter in the accession process — with requirements to further align with EU labour directives, strengthen collective bargaining, and improve enforcement.

2024 — DWCP Georgia 2024–2026

New ILO Decent Work Country Programme launched, focusing on productive employment, OSH, and social dialogue. The programme acknowledges progress made while identifying persistent gaps in enforcement, minimum wage, and collective bargaining coverage.

Sources: ILO NATLEX Georgia; matsne.gov.ge; ILO NORMLEX supervisory body reports on Georgia; OECD Labour Market Review: Eastern Europe and South Caucasus (2023); ETUI Benchmarking Working Europe. Contact: info@accreditation.ge
GILS Analysis
Georgia's Labour History: From Soviet System to Market Economy

Georgia's labour history since 1991 is the story of an abrupt transition from a Soviet planned economy — where employment was universal, wages were set centrally, and trade unions were state appendages — to a market economy where employment is uncertain, wages are market-determined, and labour rights depend on institutional capacity that took decades to develop.

The transition was neither smooth nor linear. The 1991-1994 period saw near-total economic collapse: GDP fell by 70%, hyperinflation eroded wages and savings, and unemployment and poverty reached extreme levels. The recovery from this collapse — through the Saakashvili-era deregulation reforms (2004-2012) and the post-2012 DCFTA process — has shaped the current labour market in fundamental ways.

The 2006 Labour Code — adopted under the United National Movement government — was the most radical labour deregulation in post-Soviet space: minimal employment protections, no severance requirement, simplified dismissal, no minimum wage enforcement. The 2020 Labour Code reform, negotiated under DCFTA obligations, substantially reversed this approach — restoring employment protections, strengthening trade union rights, and aligning with EU standards.

Reform trajectory: The 2020 Labour Code reform was a genuine watershed — ending 14 years of extreme deregulation. The simultaneous adoption of the Occupational Safety Law (2018) and Employment Promotion Law (2020) created a more comprehensive framework than at any previous point. The funded pension (2019) adds a social protection pillar that was entirely absent in the Soviet legacy system.
Institutional legacy: Decades of weak labour institutions have left deep marks. Trade unions — weakened during the Soviet period as instruments of state control, then further marginalised during the 2006-2020 deregulation era — have not recovered. Collective bargaining coverage (5%) reflects this institutional deficit. Rebuilding genuine worker representation takes a generation, not a Parliament session.
International Perspectives
What Other Institutions Say
ILO Historical Labour Standards Review
ILO's 2022 review of Georgia's labour standards history identifies three phases: (1) Soviet legacy (until 1991) — universal employment, state unions, no independent collective bargaining; (2) Transition chaos (1991-2006) — informal labour market expansion, weak institutions, ILO conventions ratified but unimplemented; (3) Deregulation and reform (2006-present) — 2006 Code caused significant rights regression; 2020 Code partially reversed it. ILO assesses the current period as 'reform in progress'. (ILO Georgia Labour Standards Review 2022)
World Bank Georgia Historical Assessment
The 2006 Labour Code deregulation, while damaging to worker rights, coincided with Georgia's strongest FDI and GDP growth period (2006-2008, 2010-2012). This creates a contested policy legacy: was deregulation a cause or coincidence of growth? World Bank analysis suggests the growth was primarily driven by infrastructure investment and anti-corruption reforms, not labour deregulation. (WB Georgia Economic History 2022)
GTUC Historical Perspective
From GTUC's perspective, the 2006-2020 period was the darkest in post-independence labour history. Union membership fell from 18% (2006) to under 10% (2015). Major employers explicitly told workers that union membership would result in contract non-renewal. The 2020 Labour Code restored the legal framework — but the cultural and institutional damage persists. Rebuilding trust takes time. (GTUC Historical Review 2022)
Civil Georgia / Human Rights Watch
Media and human rights documentation from 2006-2012 records systematic violations: workers fired for union activity at Rustavi Azot, TBC Bank, and construction sector employers; no LIS investigation; court cases dismissed. This documented history is important context for understanding why workers today fear exercising legal rights that nominally exist. (Human Rights Watch Georgia 2010, 2014)
GILS Position Statement

Georgia's labour history is a cautionary tale about the risks of radical deregulation. The 2006 Labour Code experiment demonstrated that minimal employment protections do not automatically translate into economic growth — and that institutional damage (to unions, to enforcement capacity, to worker trust) takes decades to repair. The 2020 reform was the right correction. The remaining challenge is building the enforcement institutions — LIS, dispute resolution, union capacity — that turn legal rights into practical protection.

— GILS Historical Research Unit, September 2026
GILS Policy Recommendations
Five Priority Actions
Recommendation 01
Labour history documentation project — archive and publish

Georgia has no comprehensive documented history of labour relations since independence. GILS to commission a Labour History of Georgia 1991-2026: monograph (200pp); interviews with key participants; primary source analysis of legislative history. Publish as PHIG monograph. Deposit with National Library. Fund via Open Society Foundation Georgia (confirmed interest).

PHIG research capacity · Open Society Foundation Georgia · National Library of Georgia
Recommendation 02
2006 Labour Code impact assessment — retrospective study

The effects of the 2006 deregulation have never been systematically studied. Commission retrospective analysis: (1) employment and wage data 2004-2012 vs comparators; (2) LIS capacity and violations data; (3) union membership trends; (4) worker survey on rights awareness. Findings inform future reform design. Geostat archival data available.

GILS research capacity · World Bank archived data · ILO historical records
Recommendation 03
Labour history public education — schools and universities

Georgian school curricula do not include labour rights history. Develop: (1) secondary school module on labour rights (2 hours; Georgian-language; aligned with civics curriculum); (2) university lecture series — GILS speakers at law and social science faculties; (3) GILS History page as teaching resource. MoES partnership for school curriculum integration.

GILS Knowledge Hub (extend) · Georgian Ministry of Education · GTUC education committee
Recommendation 04
Oral history archive — workers, unionists, labour lawyers

Key witnesses to Georgia's labour history are ageing. Commission oral history interviews: 40 interviews with: trade union officials, labour lawyers, MLHSA officials, workers involved in key disputes. Archive at National Archives. Selections published on GILS website. PHIG research fellow leads. ILO Labour History Programme can co-fund.

ILO Labour History Programme · Georgian National Archives · GILS/PHIG research capacity
Recommendation 05
International labour history integration — GILS as regional hub

Georgia's labour history is part of the broader post-Soviet transition story shared with all Eastern Partnership countries. GILS to develop comparative labour history research: Georgia-Moldova-Armenia-Ukraine parallel analysis; co-publish with counterpart institutes; present at international labour history conferences.

European Labour History Network · ILO history of social security · GILS international partnerships
ILO Standards — Georgia
Compliance Status
Convention / StandardSubjectRatifiedComplianceKey Gap
C087Freedom of Association (historical) 1993Serious regression 2006-2020Union suppression documented 2006-2015; 2020 reform partially restored rights
Labour CodeMajor reform milestones2006 deregulation; 2020 reformIn progress2006 Code: rights regressed; 2020 Code: substantial restoration; implementation ongoing
DCFTA Ch.13Social Policy (reform driver) 2014PartialDCFTA is primary driver of 2020 reform; enforcement still lagging