Employer of Record (EOR) in Georgia
Hire Georgian professionals or deploy expatriate talent with structured compliance, without the administrative burden of establishing a local LLC. We act as the formal legal employer in Tbilisi while you manage their day-to-day operations.
How Employer of Record Works in the Georgian Jurisdiction
When a foreign enterprise wishes to tap into Georgia's growing IT and professional talent pool, establishing a local subsidiary can be time-consuming, expensive, and legally complex. The Employer of Record (EOR) model provides an immediate framework designed to mitigate local employment risks.
Through this operational arrangement, ProximaEOR (the local registered entity) enters into a formal Employment Contract with the candidate, governed by the Labor Code of Georgia. Concurrently, we enter into a B2B Service Agreement with your foreign company. You direct the employee's technical tasks and schedule, while we manage the formal local legal, HR, and statutory tax reporting obligations.
The Operational Division of Roles
- 1Your Company (The Client)
Manages daily tasks, evaluates performance, and provides technical guidance to the employee.
- 2ProximaEOR (Legal Employer)
Issues the employment contract, processes GEL payroll, remits income taxes, and administers statutory leaves.
- 3The Professional (Employee)
Performs the work exclusively for your company while operating under local labor law protections.
Navigating the Labor Code of Georgia
Employment in Georgia is strictly regulated. Misclassification of full-time workers as independent contractors carries significant financial penalties. Our EOR service provides an administrative framework designed to support adherence to statutory requirements.
Contracts & Working Hours
Under Article 12 of the Labor Code, employment contracts exceeding one month must be in writing. If a fixed-term contract extends beyond 30 months (with specific exceptions), it automatically converts to an indefinite contract.
- • Bilingual Drafting: Contracts are executed in Georgian and English to ensure mutual understanding.
- • Working Hours (Article 24): Standard working time is capped at 40 hours per week (or 48 for specific shift industries).
- • Probation (Article 17): The maximum probation period allowed by law is 6 months, which must be paid.
Statutory Leaves & PTO
Georgian labor law provides robust time-off protections. Article 31 mandates specific minimum thresholds for annual leave, distinct from public holidays.
- • Paid Annual Leave: Minimum of 24 working days per year.
- • Unpaid Leave: Employees are entitled to at least 15 calendar days of unpaid leave per year.
- • Maternity Leave (Article 37): 126 calendar days of paid leave (143 for complications/twins), funded partially by the state.
Payroll & Taxation
As the EOR, we execute local payroll according to National Bank of Georgia regulations, which mandate domestic salary disbursements in Georgian Lari (GEL). We handle gross-to-net calculations and compliance reporting to the Revenue Service.
- • Personal Income Tax: A flat 20% withheld at the source.
- • Pension Contributions: The mandatory 2%+2%+2% scheme (2% deducted from employee, 2% paid by employer as a pass-through cost, 2% added by state).
- • Overtime (Article 27): Compensated at a premium rate formally agreed upon in the contract.
Lawful Termination (Articles 47 & 48)
"At-will" employment does not exist in Georgia. Terminations must be based on explicit, lawful grounds established by the Labor Code (e.g., economic circumstances, breach of obligations, incompatibility).
- • Notice Periods: Generally ranges from 3 to 30 days depending on the grounds of termination.
- • Severance Pay: Standard terminations typically trigger a mandatory statutory severance of 1 to 2 months' salary.
- • Risk Management: We consult with you prior to any termination to execute proper procedural steps and mitigate employment litigation risk.
Deploying Expatriates to Georgia
While Georgian talent is highly sought after, many companies use our EOR service to deploy foreign nationals to Tbilisi. Governed by the Law of Georgia on Labor Migration, hiring non-exempt foreign nationals involves specific procedural steps.
Work Authorization Requirements
Although citizens of approximately 94 jurisdictions can enter and stay in Georgia visa-free for a year, active participation in the local labor market generally requires formal authorization.
As your EOR, we handle the mandatory labor market testing where required. This typically involves publishing the vacancy on the state portal (Worknet), observing the review period for local Georgian candidates, and securing official agency authorization prior to finalizing the expatriate's employment contract.
Residency & Taxation
- ✓Tax Residency: Physical presence in Georgia for 183 days or more within any continuous 12-month period generally triggers tax residency, subjecting the individual to local taxation rules.
- ✓Work Residence Permit: Following work authorization and contract execution, non-exempt foreign nationals must apply for a D1 Immigration Visa or a Work Residence Permit to remain legally employed long-term.
Transparent EOR Pricing
We operate on a simple, flat-rate monthly administrative fee per employee. No hidden setup costs. Pass-through costs (such as gross salaries and employer pension contributions) are billed separately.