The Labour Code of Georgia is the primary legislation governing employment relationships in the private sector. Originally adopted on 25 May 2006 and entering into force on 23 June 2006, the Code was initially criticised by the International Labour Organisation and international human rights bodies for providing weak worker protections — particularly regarding dismissal, collective bargaining, and working time.
Following years of civil society advocacy, ILO technical assistance, and commitments under the EU Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA), a comprehensive reform package was adopted in June 2020, entering into force on 1 August 2020. The 2020 reform was the most significant overhaul since the Code's adoption and brought Georgian labour law closer — though not fully aligned — with EU standards and ILO Conventions.
The Code applies to all employment relationships in the private sector. Civil servants are governed separately by the Law on Public Service (2015). Agricultural self-employment and family labour remain largely outside the Code's scope — a significant gap given Georgia's rural employment structure.
Historical development
How the Law Evolved: 2006 – 2024
2006 — Adoption
Original Labour Code adopted. Replaced Soviet-era labour legislation. Critics including the ILO Committee of Experts and ITUC identified major gaps: no minimum notice periods, employer could dismiss without stated reason, strike rights severely restricted, no regulation of collective agreements. Described by ITUC as "among the most employer-friendly codes in the world."
2010 — First amendments
ILO-recommended adjustments. Introduced basic provisions on occupational safety and extended the definition of discrimination. Working time rules clarified. Limited improvement; structural issues remained.
2013 — Major revision
First significant reform under ILO/EU pressure. Introduced mandatory notice periods (minimum 30 days for dismissal), clearer grounds for termination, right to written employment contracts, and basic collective bargaining framework. Aligned with EU Association Agreement requirements.
2017 — Working time reform
Working time standardised. Maximum 40-hour working week firmly established. Overtime rules tightened. Night work and dangerous work provisions improved. Linked to ILO C001 and EU Working Time Directive alignment commitments under DCFTA.
2020 — Comprehensive reform (landmark)
Most significant overhaul since adoption. Triggered by DCFTA obligations and EU scrutiny. Key changes: (1) written contracts mandatory within 1 month; (2) indefinite-term contracts as default; (3) strengthened anti-discrimination provisions with new protected grounds; (4) maternity leave extended to 730 days (365 paid); (5) rights extended to platform/gig workers; (6) fixed-term contracts restricted; (7) collective agreement enforcement strengthened; (8) Labour Inspection empowered with real enforcement tools.
2022–2023 — Technical amendments
Fine-tuning post-2020 reform. Clarifications on remote work provisions (added 2022 following pandemic experience), digital contract formats accepted, dispute resolution timelines adjusted. Disability provisions aligned with 2023 Law on Rights of Persons with Disabilities.
Worker Protection Index — Georgia's Labour Code score over time
Composite score 0–10 based on ILO supervisory body assessments (GILS analysis, 2024). Higher = stronger worker protection.
Source: GILS composite analysis based on ILO Committee of Experts reports 2006–2024. Benchmark represents ILO minimum standards for developed labour law systems. Score components: dismissal protection, collective bargaining, working time, anti-discrimination, enforcement.
Key provisions
Article-by-Article Summary
Labour Code of Georgia — Structured Summary (2020 consolidated version)
Defines the scope of the Code: all employment relationships between employers and employees in Georgia's private sector. Excludes civil servants (governed by Law on Public Service), self-employed persons, and volunteers. Article 1(3) provides that international treaties ratified by Georgia take precedence over the Code — bringing ILO conventions into the domestic legal hierarchy.
GILS note: The exclusion of agricultural self-employed workers and family workers is a significant coverage gap affecting approximately 380,000 persons engaged in subsistence agriculture (Geostat 2023).
Article 2
Definitions
Defines "employer," "employee," "employment relationship," "working time," and "place of work." The 2020 reform added definitions for "platform worker," "remote worker," and "temporary agency worker" — recognising non-standard employment forms. "Employment relationship" is defined functionally, capturing situations where a contractual label may differ from economic reality (test: subordination, integration into organisation, employer-directed work).
Articles 3–5
Prohibition of Discrimination, Forced Labour, and Child Labour
Article 3: Prohibits discrimination in employment on grounds of race, colour, language, sex, age, citizenship, national origin, place of birth, residence, property and social status, religion or belief, political or other opinions, sexual orientation, gender identity and expression, disability, membership of a trade union or other legitimate organisation, or other characteristics unrelated to the professional qualification of the employee. Article 4: Prohibits forced or compulsory labour. Article 5: Prohibits employment of persons under 16; allows 14–16 with parental consent for light non-hazardous work.
Chapter II — Employment Contract (Articles 6–13)
Article 6
Form and Content of Employment Contract
An employment contract must be concluded in writing within one calendar month of the commencement of work (2020 reform: previously oral contracts were legally valid). The contract must specify: identity of parties, job position and place of work, remuneration amount and payment schedule, working time arrangements, duration of contract, start date, probationary period (if any), and notice period. Electronic contracts are valid since 2022.
GILS note: Despite the written contract requirement, the Labour Inspection Service found in its 2023 report that approximately 23% of employment relationships in small enterprises (under 10 employees) remain uncontracted. This is an enforcement gap requiring active inspection follow-up.
Article 7
Contract Duration — Indefinite vs. Fixed-Term
The 2020 reform established the indefinite-term contract as the legal default. Fixed-term contracts are permitted only when justified by objective reasons (temporary replacement of an absent employee; project-based work; seasonal work; commencement of a new activity). Fixed-term contracts may not exceed 3 years and may not be renewed more than twice for the same function — after which the contract converts to indefinite-term by operation of law.
Articles 8–13
Probation, Transfer, and Contract Amendment
Article 8: Probationary period maximum 6 months (cannot be extended). Article 9: Transfer to another position requires employee consent unless temporary and for no more than 45 days. Article 10: Employer may not unilaterally change essential contract terms — any change requires 30-day advance written notice and employee agreement; if employee disagrees they may terminate and claim compensation. Articles 11–13: Part-time work, multiple employment, and home-based work provisions.
Chapter IV — Working Time and Rest (Articles 14–21)
Article 14
Standard Working Time
Normal working time must not exceed 40 hours per week. For employees performing hazardous or difficult work: maximum 36 hours per week. Daily working time: maximum 8 hours (12 hours with explicit employee consent for shift workers, subject to compensatory rest). The working week is calculated across 5 or 6 days depending on schedule — with a minimum of 24 consecutive hours of rest per week.
Article 17
Annual Leave
Minimum paid annual leave: 24 working days (since 2013 reform; prior to 2013 it was 24 calendar days which was effectively shorter). Additional unpaid leave of 15 days is guaranteed on request. Employees in hazardous work receive an additional 6 days of paid leave. Leave cannot be waived or replaced by payment during the employment relationship (only on termination). Maternity leave: 730 calendar days total (365 days paid at 1,000 GEL/month from the state; employer may top up but is not required to).
GILS note: The 24-working-day minimum is relatively low by EU standards (EU minimum: 20 working days; most EU states: 25–30). The ILO Committee of Experts has recommended increasing the minimum to 28 working days for alignment with ILO C132.
Article 18
Overtime Regulation
Overtime is work beyond 40 hours per week. Requires employee agreement (not just employer instruction). Maximum overtime: 48 hours per week; 8 hours per day. Total weekly working time including overtime cannot exceed 48 hours (averaged over 17-week reference period). Overtime must be compensated at not less than 125% of the regular hourly rate, or by equivalent compensatory rest time.
Chapter VI — Termination of Employment (Articles 37–46)
Article 37
Grounds for Termination
An employment contract may be terminated only on specified grounds: (a) mutual written agreement; (b) expiry of fixed-term contract; (c) employee's written resignation with 30 days' notice; (d) employer's termination — only for valid reasons listed in Article 38; (e) objective circumstances making continuation impossible (force majeure, death, incapacity confirmed by medical panel). Termination without a listed valid ground is void and the employer must reinstate the employee and pay full wages for the period of unlawful dismissal.
Article 38
Valid Grounds for Employer Termination
Valid grounds for employer-initiated termination include: (1) inadequate performance confirmed after formal performance improvement process; (2) redundancy due to economic, technological or organisational change (with 30-day notice and compensation); (3) repeated disciplinary violations (minimum 2 documented violations within 1 year with written warnings); (4) single gross misconduct (theft, fraud, dangerous act, intoxication); (5) long-term incapacity exceeding 40 working days; (6) employer insolvency with court approval.
GILS note: The 2020 reform significantly strengthened Article 38 compared to 2013 — but "inadequate performance" ground remains vaguely defined and has been used to justify dismissals that courts later found unlawful. The ILO has recommended a statutory definition of "adequate performance standards" and mandatory advance notice of performance concerns.
Article 39
Notice Period and Severance
Employer must give minimum 30 calendar days' written notice before termination (except for gross misconduct, which is immediate). In lieu of notice, the employer may pay 30 days' wages (payment in lieu). Severance pay on redundancy: 1 month's salary per year of service, up to maximum 6 months. Employees with less than 6 months' service receive at least 0.5 months' salary.
Article 40
Prohibited Dismissals
Termination is absolutely prohibited during: (a) pregnancy and 730 days following birth (maternity protection); (b) sick leave (temporary); (c) military service or civil duty; (d) trade union membership or activity; (e) filing a complaint with the Labour Inspection Service or court. Any dismissal during these periods is null and void regardless of the stated reason.
GILS Analysis
What the Code Does Well — and Where It Falls Short
Strengths: The 2020 reform was a genuine step forward. Written contracts are now mandatory, indefinite-term contracts are the default, anti-discrimination provisions are among the most comprehensive in the South Caucasus, and maternity leave duration (730 days) exceeds many EU member states.
Worker Protection Score — South Caucasus Comparison (2024)
Composite index across dismissal protection, collective bargaining, working time, and enforcement. Scale 0–10.
Source: GILS assessment based on ILO NATLEX comparative analysis and World Bank Labour Market Indicators 2024. EU average reflects EU-27 composite (2023).
Persistent gaps identified by ILO supervisory bodies (2020–2024): Collective bargaining coverage remains below 8% of workers (EU average: ~60%). The "inadequate performance" dismissal ground is vaguely defined. Annual leave minimum (24 days) is below ILO C132 standards. Enforcement capacity of the Labour Inspection Service remains insufficient — approximately 1 inspector per 7,800 workers (ILO recommends 1:10,000 for developing countries but 1:15,000 is the average; Georgia's ratio appears adequate but the LIS budget and geographic reach are inadequate).
The following amendments are recommended by GILS based on evidence from ILO supervisory body observations, EU approximation requirements under the Association Agreement, and comparator country experience. These are not official policy positions but reflect GILS' independent research mandate.
The current vague formulation of "inadequate performance" as a dismissal ground creates legal uncertainty and is frequently used to disguise discriminatory or arbitrary dismissals. Article 38(1) should be amended to require: (a) written performance standards communicated to the employee at recruitment; (b) a formal performance review with specific documented shortfalls; (c) a minimum 60-day performance improvement plan with written support commitments from the employer; (d) the employee's right to union representation during the process. This mirrors Article L. 1232-1 of the French Labour Code and Section 98 of the UK Employment Rights Act 1996.
🇫🇷 France · 🇬🇧 UK · 🇩🇪 Germany (§ 1 KSchG)
Recommendation 02
Extend Annual Leave Minimum to 28 Working Days — Article 17
Georgia's 24 working-day minimum is below the ILO C132 recommended standard of 3 working weeks (15 working days minimum) but above the EU minimum of 20 working days. However, comparison with peer countries shows Georgia's minimum is below the regional norm for an EU-aspirant country. We recommend increasing the minimum to 28 working days, phased: 25 days from 2025, 28 days from 2027. The additional cost to employers is estimated at 2.5–3.5% of wage bill for directly affected workers — manageable via a productivity offset clause allowing agreement-based scheduling flexibility.
With collective bargaining coverage below 8%, Georgia's labour market lacks the wage-setting and dispute-resolution infrastructure that underpins stable industrial relations. We recommend introducing an erga omnes extension mechanism: where a collective agreement covers more than 50% of workers in a sector, the Ministry of Labour may extend its terms to all workers in that sector. This mechanism exists in 18 EU member states and is a requirement for EU accession countries. A new Chapter IIa should establish: sectoral social dialogue structures, a mediation service within the MLHSA, and mandatory information and consultation rights for employee representatives in enterprises with 20+ employees.
🇩🇪 Germany (TVG §5) · 🇫🇷 France (L. 2261-24) · 🇲🇩 Moldova (Labour Code Art. 34)
The 2020 reform recognised platform workers in the definitions but did not establish their rights. An estimated 45,000–80,000 workers in Georgia engage in app-mediated platform work (ride-hailing, food delivery, freelance services) — largely without social protection, occupational safety coverage, or collective rights. We recommend adding Article 3a establishing a "dependent contractor" category: workers who are economically dependent on a single platform for more than 50% of income receive: minimum wage protection, OSH coverage, accident insurance obligation on the platform, and the right to collective representation. This mirrors the EU Platform Work Directive (2024/2831).
🇬🇧 UK (2021 Uber ruling) · 🇪🇸 Spain (Riders' Law) · EU Directive 2024/2831
Recommendation 05
Equal Pay Transparency — New Article 5a
Georgia's gender pay gap (unadjusted) stands at approximately 32% (Geostat 2023) — one of the highest in the EU neighbourhood. The Labour Code currently prohibits pay discrimination but provides no enforcement mechanism. We recommend adding Article 5a requiring: (a) employers with 50+ employees to report gender pay gap data annually to the Labour Inspection Service; (b) the LIS to publish sector-level pay gap data publicly; (c) employees' right to request salary information from their employer (right to pay transparency). This follows EU Pay Transparency Directive 2023/970, which EU accession countries will need to implement.
"The Georgian Labour Code, since the 2020 reform, provides a solid structural framework. The outstanding challenge is not the law itself but the gap between its provisions and workplace reality — particularly for workers in small enterprises, informal arrangements, and non-standard employment. The next reform cycle must focus on enforcement, coverage extension, and closing the collective bargaining deficit."
— GILS Research Position Paper on Labour Law Compliance, September 2026
International Framework
ILO Conventions and Georgia's Compliance Status
ILO Convention
Subject
Ratified
LIS Compliance
Key Gap
C098
Right to Organise & Collective Bargaining
1993
Partial
Anti-union dismissal enforcement weak; no sector extension mechanism
C154
Collective Bargaining (promotion)
1993
Incomplete
Coverage <8%; no mandatory sectoral bargaining infrastructure
C158
Termination of Employment
1993
Partial
Valid grounds list improved 2020 but "inadequate performance" undefined
C131
Minimum Wage Fixing
Not ratified
n/a
Georgia has no statutory minimum wage — recommendation: ratify and introduce
No unemployment insurance system; only ESDC active labour market programmes
Labour Inspection Service — Inspections & Violations Found (2019–2023)
Number of workplace inspections conducted and violations identified per year. Source: LIS Annual Reports.
Source: Labour Inspection Service Annual Reports 2019–2023 (MLHSA Georgia). Data represents formal inspections; estimated 70–80% of labour violations in small enterprises are not captured by formal inspection processes (LIS 2023 self-assessment).