Employer of Record in Georgia
Skuad’s Employer of Record Georgia (EOR) solutions make business expansion to Georgia easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Georgia, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. Book a demo with Skuad today.
Georgia at a Glance
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)
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Employment in Georgia
Georgia is a former Soviet Republic country that enjoys a strategic location at the intersection of Asia and Europe. It forms a part of the Caucasus region and has the Black Sea to its west. It is bordered on the north by Russia, and by Azerbaijan, Armenia, and Turkey to its south. This strategic location affords the Georgian economy a unique set of opportunities for growth and development.
While most of the decade following its independence from the Soviet Union in 1991 was riddled with civil unrest and political instability, Georgia’s pro-western policies have had a tremendous impact on its economy.
Several multinational organizations are gearing up to hire international employees and create remote teams in Georgiathere. The labor laws in Georgia are governed by the Labor Code of Georgia, and understanding the peculiarities of the local labor and employment legislation can prove to be a challenge for such organizations.
In such cases, tying up with a local partner well versed in local legislation can help in avoiding non-compliance due to oversight. Skuad’s Georgia EOR solutions can streamline the hiring process in a manner that is efficient and 100% compliant.
Here are some relevant aspects of employment in Georgia.
To learn more about Georgia’s employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
As per Georgia’s employment laws, employment contracts can be drawn up in either a written or oral format. However, to ensure transparency and clarity of the terms of the employment, it is always advisable to execute written employment contracts.
Employment agreements in Georgia can be entered into for both a definite or indefinite duration. The contracts must be in Georgian or any other language that both parties can understand, and must clearly state the following terms of employment.
- The agreed-upon employee compensation (in GEL).
- Additional employment benefits, if any.
- Terms of termination.
- Duration of contract (in case of definite contracts).
- Nature of the work that employees are expected to deliver.
- Other relevant information, such as notice and probation periods.
Although it is not standard practice, employers can run a basic, non-intrusive background check of the employees by requesting essential information such as criminal records, driving records, details of the previous employers as a reference, and credit checks.
- Flexibility: Since contractors are hired on a short-term basis, you are free to determine the scope of their work temporarily. If new needs arise, further contracts can be drafted in the short term.
- Independence: Short-term contractors usually work independently. They do not require close supervision, and your resources can be transferred elsewhere, as needed.
- Cost: Hiring contractors may be cheaper in the long run, although their individual rates are higher than those of full-time employees. This is because such employees are not entitled to employment benefits such as bonuses and tax compensations.
- Loyalty and organizational commitment: Full-time employees are likely to be more loyal as they exclusively work for your company. As their individual success depends on the performance of your firm, they are likely to invest more effort into their work.
- Knowledge: All employees undergo training when they join a firm. The skills and knowledge gained by a full-time employee, however, stay within the organization.
- Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications can be avoided completely. When hiring full-time employees, you determine the terms of the contract and entitlements, and these are not liable to change unless mutually decided by both parties.
Drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Georgia can be a tedious task for international companies that have no local liaison offices. Skuad’s comprehensive EOR solution for Georgia also includes templates of employment contracts, so that hiring and onboarding of the employees can be accomplished compliantly. Learn more from Skuad experts about hiring the best Georgian talent on both a contractual and full-time basis.
Hiring in Georgia
Finding and hiring the right employees has a direct impact on the success of your business venture, even more so when it is an international expansion. However, when it comes to hiring the best employees in Georgia, there are a couple of challenges that international companies face.
First and foremost is the language barrier. In countries such as Georgia, where English is not as widely spoken, communicating with prospective employees can be challenging. Second, hiring and recruiting employees per the local laws can be an overwhelming and time-consuming process. Oversight in compliance with the local legislation can lead to uncalled-for fines.
If you want to hire employees in Georgia, you can,
- Collaborate with a local recruitment agency.
- Set up a separate legal entity with an HR department to handle the recruitment and payroll management.
- Partner with a global EOR service for Georgia that can handle all hiring- and recruitment-related compliances on your behalf.
Most employers in Georgia advertise their job openings on websites and portals, such as,
Skuad’s extensive, hyper-localized Employer of Record solutions for Georgia make the hiring process easy and hassle-free. We handle all the complicated tasks related to payroll management and taxes in compliance with the local laws so that you can focus on other aspects of global expansion. Talk to Skuad experts now to learn more about hiring in Georgia.
Probation & Termination
To ensure that the employee is well-suited for the job that they are hired for, employers can (with mutual agreement with the employees) add a clause defining a probationary period in Georgia employment contracts. Even though the standard probation period in Georgia is not defined, it cannot, in any case, be longer than six months.
Employment contracts in Georgia can be terminated due to the following reasons.
- The employment obligations as envisaged by the employment contract are not met
- Definite employment contracts have run their course and expired
- Violation of the terms of the contract by either party
- The employment contract is rendered invalid for some reason
- Mutual agreement between the parties for termination
- Force majeure
- Long-term disability (one that lasts longer than 40 consecutive days or 60 days in six months)
- Death of the employer or employee
- Liquidation of the employer (legal entity)
The terminating party must serve a notice period of 30 days. Employment contracts can be terminated without serving the notice period only during the probationary period.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Georgia, talk to Skuad experts and book a demo today.
Expanding your business operation beyond your national borders can be an expensive and time-consuming task. It involves several complex procedures that can take a lot of time to complete. By choosing to partner with a Georgia EOR service, you can not only expedite the expansion process but also simplify it.
Skuad’s EOR solution for Georgia makes business expansion in Georgia quick and hassle-free. Our unified HR platform coupled with a comprehensive global payroll management network makes sure that the monthly tasks of managing payroll and employee benefits and other hiring-related matters, such as tax compliance, employment contracts, work permits, are well taken care of.
In sum, we can offer tailor-made EOR solutions for all your expansion needs in Georgia. To avail yourself of our services, speak to Skuad experts today.
Types of Visas in Georgia
The Georgian government issues the following categories of visas to international citizens visiting Georgia.
- 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
An important aspect of global business expansion is to comply with all the work visa and work permit requirements of the country that you are expanding into so that your employees can legally live and work in Georgia. Let’s understand the Georgian Immigration Visa in detail.
Talk to us and get more information and guidance related to types of visas and work visa requirements in Georgia. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
International citizens who want to relocate to Georgia to live and work on a long-term basis simply need to obtain a long-term visa. The long-term visa also acts as a work permit in Georgia while also enabling the visa-holder to obtain a residence permit, allowing them to reside in Georgia once they have arrived. Note that this is a Type D visa (immigration visa).
To know more about work permits in Georgia and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.
Payroll & Taxes in Georgia
Payroll in Georgia
To recruit employees in Georgia and manage their compensation and other benefits following the local labor legislation, foreign companies must set up a payroll. This can be done in one of the following four ways.
- Incorporating a separate legal entity and handling the payroll management with an in-house HR department.
- Setting up a remote payroll by adding your Georgian employees to your parent company’s payroll.
- Payroll outsourcing in Georgia in collaboration with a local company that handles HR tasks but leaves you in charge of liabilities.
- Payroll outsourcing in Georgia with a global EOR service such as Skuad, which can handle your payroll while ensuring total compliance with the local laws.
Setting up a separate legal entity in compliance with the local legislation can be a long-drawn process that can take up to months to complete. Additionally, to handle the tax and other allied compliances, businesses must first establish a deep understanding of the nitty-gritty of laws of the land which again can take a long time. On the other hand, a local EOR partner in Georgia such as Skuad can handle payroll management and other local tax-related compliances on your behalf.
Taxes in Georgia
To ensure your expansion endeavors are in compliance with the Georgia employment laws, Contact Skuad today
Incorporation: How to Set Up a Subsidiary in Georgia
The most preferred and common manner in which you can expand your business operations in Georgia is by way of setting up a Georgian subsidiary company. Establishing a subsidiary in Georgia will enable you to set up a payroll for your employees, recruit a team, and compensate them as per the laws.
The most popular structure for a subsidiary in Georgia is the limited liability company (LLC). The procedure to incorporate an LLC in Georgia is as follows.
- An LLC can be registered through the National Public Registry of Georgia.
- All the required supporting documents as well as the form of application must be submitted to the National Public Registry for them to be publicly available.
- Upon such submission, a charter known as the Articles of Association will be received by the applicant.
- Comply with the banking, tax, and other civil compliances.
Even though setting up a subsidiary has undeniable benefits when it comes to international expansion, it can take up to several weeks; sometimes, this can even take months. You can instead use Skuad’s Georgia EOR solutions along with our existing infrastructure and leverage all the lucrative business opportunities in Georgia immediately. To learn more, book a demo with Skuad experts!
Professional Employer Organization (PEO)
The terms Employer of Record (EOR) and Professional Employer Organization (PEO) are often used interchangeably when it comes to global employment and HR services. However, upon closer inspection, it is clear that these terms are quite different from one another. If you are planning an international expansion of your business operations, it is important to understand the minute differences to make an informed choice regarding which one to hire.
While a PEO in Georgia will handle employment for you, the employment contract itself will be between you and the employee. On the other hand, an EOR service will employ the employees on your behalf based on the agreement entered into by the company and the EOR.
Skuad’s Georgia EOR service assumes all the legal and payroll responsibilities for you so that you can immediately begin your business operations without having to set up separate legal entities. A PEO service does not manage compliance; this means your company will be held responsible in case of compliance-related issues. Further, a PEO can only be established in countries where your company also has a legal entity.
Skuad's EOR solution is a good way to expand your business in Georgia without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us.
Conclusion: What Gives Skuad’s Georgia Solutions an Edge?
If you believe that your business is ready to be catapulted into the global market by expanding its operations in Georgia, Skuad’s EOR service for Georgia can assist you every step of the way. By handling the complex procedures relating to taxes and other legal compliances on your behalf, Skuad can streamline the process of employee recruitment and HR management for a seamless business expansion experience.
Skuad has an extensive network in 150+ countries across the globe and provides a single interface to onboard and manage employees and contractors. It offers consistent prices irrespective of the location and manages the payment of your team through a single invoice. It also ensures that your IP, invention rights, and sensitive employee details are fully protected wherever you operate.
If you would like to know how Skuad’s tech-enriched HR platform can help your business expansion, please get in touch with our in-house team of global employment experts today!