Legal and compliance checklist for Employer of Record (EOR) services in Georgia
- Gegidze • გეგიძე | Marketing
- Jun 10
- 14 min read
Table of contents:
Hiring in Georgia? Skip the legal guesswork
You found the perfect dev. Speaks fluent TypeScript and English. Lives in Tbilisi. Wants to start on Monday.
Now what?
You could roll the dice. Send a freelance contract. Wire them money. Hope no one audits your “remote-friendly” hiring model.
But hope isn’t a strategy. And Georgia isn’t the Wild West.
Let’s get real: remote hiring in Georgia without understanding the legal side is like building your backend on hope and duct tape. It might work for a sprint or two. Then, boom, compliance debt.
What did you think was a remote hire? Turns out it’s a misclassified employee.
What you assumed was a harmless contractor? Now it’s a tax liability with a side of IP risk.
And no, copy-pasting a freelance contract from your last Upwork gig isn’t going to hold up in a labor dispute.
So what’s the fix?
Structure.
Legal clarity.
An EOR that actually understands how Georgia works.
Because if you’re trying to scale in Eastern Europe, the last thing you need is a surprise fine or a dev walking away with your source code. You need a system, one that keeps you hiring fast and clean.
That’s what this article is. A legal and compliance checklist for hiring in Georgia through an Employer of Record (EOR) that doesn’t read like a government website.
Let’s skip the legal guesswork. And the fines. And the drama.
You're here to grow your team, not fight a tax inspector.
What most founders get wrong about “compliance” in Georgia
Let’s talk about the most dangerous phrase in global hiring:
“It’s fine, we’ll just use a contractor.”
That sentence has launched more compliance headaches than any rogue Jira ticket ever could.
Here’s the thing: Georgia isn’t some legal vacuum where you can hire whoever you want, however you want, with no strings attached. It has labor laws. Real ones. With real fines if you ignore them.
Most founders assume “remote” means “risk-free.”
But the moment your so-called contractor starts working like a full-time employee, set hours, set tools, long-term projects, you’ve got a misclassification problem. And Georgia’s not shy about calling you out on it.
What’s the risk?
Back taxes (with penalties)
Social security contributions owed
Retroactive benefits
And yeah, potential lawsuits
Plus, let’s not forget the IP nightmare if your “contractor” walks and takes your product with them, because no local employment contract means no local protections.
Bottom line: Compliance isn’t optional. It’s the cost of playing the game right.
That’s where an EOR comes in, and the best employer of record provider in Georgia doesn’t just run payroll; they handle contracts, taxes, benefits, terminations, and keep you out of the legal gray zone altogether.
Because “hoping for the best” isn’t a legal strategy. And “just paying them through Payoneer” won’t hold up when the tax office knocks.
Want your next round to close without a due diligence bomb? Make compliance your co-founder.
What does an EOR handle in Georgia? (and what’s still on you)
If you’ve ever tried hiring in a new country and thought, “Wait… what even counts as legal here?”, you’re not alone.
Hiring in Georgia sounds easy. Until you realize you need a local entity, a Georgian-language employment contract, and a lawyer who understands how tax codes apply to remote workers who’ve never even been to your HQ.
That’s where a legit Employer of Record (EOR) comes in.
But this isn’t just about payroll. A good EOR isn’t your outsourced accountant—it’s your legal buffer, your compliance bodyguard, and your back-office ops all rolled into one.
What your EOR (HI) handles in Georgia
Let’s break it down. Here’s what you hand off to us, completely:
Local Employment Contracts
We draft and issue Georgian-compliant contracts, in the right language, referencing the right labor laws. Fixed-term? Open-ended? We’ll advise on the best structure based on your needs.
No Google Docs. No misused templates. Just real contracts that protect both you and your hire.
Labor Law Compliance
We stay updated on Georgia’s employment laws, because they do change. We make sure your employment terms meet minimum standards for:
Working hours
Paid leave
Sick leave and maternity/paternity coverage
National holidays
Severance and termination
You don’t need to memorize the Labor Code. We already did.
Payroll Administration
We process local payroll in GEL (Georgian Lari), not in crypto, not in goodwill. This includes:
Calculating and withholding personal income tax (20%)
Filing and paying social security contributions (pension, healthcare, etc.)
Generating local payslips
Handling bonus structures, reimbursements, or performance-based adjustments
It’s accurate, timely, and fully above board—every time.
Mandatory Benefits
Yes, we know what’s legally required. No, you don’t need to Google it.
Paid annual leave (minimum 24 days/year)
Paid sick leave
Pension fund contributions (if applicable)
Overtime policies
Health & safety provisions for remote work
We don’t just offer a benefits package—we make sure it’s compliant.
Onboarding & Documentation
All the official documents, passports, tax numbers, and employment confirmations get collected and filed properly. We also help verify work eligibility, track contract renewals, and meet any E-Verify-style checks required.
Termination & Offboarding
Need to part ways with someone? We handle:
Notice periods
Exit documentation
Severance (if applicable)
Legal compliance around cause or performance-based exits
There are the right ways to terminate contracts in Georgia. We follow them to the letter, so you don’t end up in arbitration six months later.
Workspace, Equipment & Remote Compliance
You want your team to be remote. Great. But Georgian labor law still applies.
We clarify who owns what (laptops, monitors, etc.)
Advise on workspace allowances and health & safety standards
Ensure you’re not liable for workspace risks—even when they’re 3,000 miles away
Monthly Invoicing
You get one invoice per month. It includes:
Gross salary
Tax contributions
Benefits
Our EOR fee
No mystery math. No surprise line items. Just clean, funder-friendly ops.
What’s still on you?
We handle the legal side. But they’re still your team.
That means:
You choose who to hire
You onboard them into your workflow
You manage tasks, performance, and promotions
You build culture
You set priorities
We’re not in your Slack (unless you want us to be). We don’t join your standups. We don’t micromanage your sprints.
We make sure your engineers in Tbilisi are legally employed, paid on time, and protected by Georgian law, so you can stop worrying about backend liability and focus on your backend logic.
Work permits, taxes, contracts: Georgia’s rules you can’t skip
Look, Georgia’s great for hiring, but it’s not lawless.
Too many founders think: “No EU? No problem.” They hire someone in Tbilisi, PayPal them $3,000/month, and call it global expansion.
Until the tax office shows up asking why that “contractor” hasn’t filed a return. Or worse, ask your company to.
So let’s talk about the boring (but critical) stuff most people ignore until it’s too late.
Work permits & visas in Georgia
If you hire a Georgian citizen? You’re good.
If not, especially if they’re relocating, then the Type D immigration visa is your best friend. It doubles as a work permit and opens the door to local residency. Your EOR should handle:
Visa sponsorship letters
Employment confirmation
Proof of income and accommodation
Government fees and filings
No permit = no peace of mind. Period.
Employment contracts in Georgia
Forget English-only templates.
In Georgia, contracts should be in Georgian (or another language both parties fully understand). And yes, they must spell out:
Gross compensation (in GEL)
Role expectations
Benefits & perks
Probation clauses (max 6 months)
Termination terms (with 30-day notice)
Use anything less, and you're skating on thin ice, especially with IP ownership and termination protection.
Payroll & taxes in Georgia
Here’s the compliance kicker: You owe 20% personal income tax on every salary, withheld at source. An EOR makes sure it gets filed and paid monthly, on time, and with no missing decimals.
You also need:
Local payslips
End-of-year tax reporting
Pension contributions (2% from employer, 2% from employee)
Zero guesswork
Terminations in Georgia
Georgia is pro-business, but not a free-for-all.
Want to let someone go?
You’ll need 30 days’ written notice (unless during probation)
You’ll need to document the cause or mutual agreement
You’ll need to pay out accrued leave
And yes, it’s enforceable
Screw this up, and you risk fines, lawsuits, or being ghosted with unfinished code and no recourse.
The payroll trap: What happens if you miss one filing?
You’re scaling fast, your team’s growing, and suddenly, your Georgian dev messages you:
“Hey… I didn’t get paid this month?”
Your stomach drops.
You scroll through your inbox. No tax confirmation. No payroll run. And that contractor agreement? It was a PDF from six months ago.
Welcome to the trap.
In Georgia, missing just one payroll filing isn’t a slap on the wrist, it’s a compliance red flag. And the fallout isn’t just about unhappy employees. It’s legal, financial, and reputational.
Here’s what really happens:
You trigger a tax audit
Georgia’s tax office doesn’t wait for a quarterly update. Payroll taxes are due monthly, and the Revenue Service expects precise filings with:
20% income tax withheld at source
Pension contributions submitted on time
Payslips are properly generated in GEL
Miss a filing, and you’re officially non-compliant. That’s audit territory.
Your team loses trust
No pay = no loyalty. Once your talent realizes you’re winging local compliance, you lose credibility fast. Especially in a market like Georgia, where stable, Western-style jobs are prized.
Don’t be the “cool startup” that can’t pay on time.
You could owemorethan you think
Late tax filings come with interest penalties and fines. Plus, if your team is misclassified (say, contractors doing employee-level work), the government can backdate:
Benefits owed
Social contributions
Severance packages
Sick pay and leave
And guess what? You still have to pay your team. Retroactively.
Your next funding round gets shaky
Diligence teams spot compliance issues fast. One missing payroll report in Georgia can lead to investor questions like:
“Are there more?”
“Do they have proper contracts?”
“Is this company globally compliant at all?”
Suddenly, that Series A term sheet gets a whole lot thinner.
Employee benefits when using an Employer of Record in Georgia
Let’s get one thing straight: if you’re hiring in Georgia, perks aren’t just about keeping talent happy, they’re about staying out of trouble.
Some benefits are mandatory under Georgian law. Others? They're just good business.
Miss the first category, and you're non-compliant. Skip the second, and you’ll struggle to attract top-tier engineers who’ve got four offers in their inbox and know exactly how good healthcare in Estonia is.
So let’s separate the must-haves from the nice-to-haves.
What benefits must the Employer of Record provide in Georgia?
Glad you asked
No, You Can't Skip These:
Paid Annual Leave
24 working days per year (minimum)
Up to 15 additional unpaid days after 11 months of service
Unused days must be paid out if the contract ends
Public Holidays
Georgia observes 15 national holidays
You’re expected to grant them, and yes, they’re paid days off
Maternity Leave
183 calendar days paid (200 for multiple births)
Covered by the state, not your payroll
Optional 730 total days of leave available (only 183 paid)
Sick Leave
Not mandatory in the private sector, but…
Most employers offer it to stay competitive
Some benefits are expected even if not codified
Pension Contributions
You pay 2%, the employee pays 2%, and the state matches it
Yes, this is mandatory if your employee opts in (which most do)
What are competitive add-ons (that your team will notice)
These aren’t required, but ignore them, and your top candidates will go with someone who offers more than just GEL.
Private Health Insurance
Not required, but widely appreciated
A strong signal that you’re invested in employee well-being
Covers medical care beyond what public clinics provide
Equipment & Stipends
You’re not legally obliged to buy laptops or desks
But if your EOR doesn’t help you set equipment policies, you’re risking disputes over who owns what
Workspace Access
Remote-first? Cool. But some teams want a co-working pass or occasional access to a professional setup
Bonus: It helps with tax documentation
Performance Bonuses
Not mandated, but you’ll find local competitors use them to incentivize and retain top talent
Common structures: quarterly goals, year-end reviews, or profit-sharing
Paid Learning & Development
Courses, certs, language classes, small investments that go a long way in markets like Georgia, where upskilling is a cultural value
Equipment, workspace, onboarding: Who provides what?
If your onboarding process is “Here’s a Gmail invite and good luck,” it might be time to rethink remote hiring.
Let’s face it, hiring someone in Georgia isn’t just about sending a job offer and hoping they show up with their own laptop, standing desk, ergonomic chair, stable Wi‑Fi, and… you get the point.
There’s a line between lean ops and legal risk.
And that line gets blurry fast when nobody knows who’s buying what, storing what, or paying for that second monitor that mysteriously “never worked.”
So let’s break it down.
Equipment policies for employees hired via employer of record in Georgia
Who Buys the Laptop?
Short answer: You do.
Longer answer: Georgia doesn’t legally require you to provide hardware, but if you're employing someone through an EOR, and that person can't work without the equipment... It’s your problem.
Here’s how smart companies handle it:
You fund it: laptop, monitor, accessories, anything required for the job
We document it: through your EOR agreement (ownership, returns, depreciation)
Your employee signs for it: reducing disputes later
Want them to buy their own and expense it? That’s fine, just clarify it upfront.
Pro tip: Don’t send expensive gear internationally without insurance and serial tracking. Georgian customs can be unpredictable. Ask us how we handle it.
Workspace options for remote employees hired through Employer of Record in Georgia
Remote = flexible. But remote ≠ lawless.
Your hire’s workspace still falls under Georgian labor law for health and safety. That means:
They’re entitled to a reasonable, safe place to work
If they hurt their back on a broken chair you provided... that’s on you
If your contract is vague, liability gets weird
Some employers cover coworking memberships, home office stipends, or ergonomic setups. Not mandatory, but highly appreciated.
And if you’re building culture? The occasional in-person workspace helps. Team Up can recommend flexible workspace solutions in Tbilisi.
Onboarding: Who handles paperwork, training, and access?
Let’s be real, your EOR doesn’t run your Slack onboarding or show people how to use Jira.
Here’s the split:
Team Up handles: employment contracts, local tax IDs, compliance paperwork, payroll setup
You handle: tool access, team intros, role-specific onboarding, and… maybe telling them who Sarah in Product is
It’s your team, we just help you start them off the right way.
So yeah, don’t assume your new engineer magically knows which laptop to buy or whether you’re reimbursing their coworking pass.
Let’s make that stuff clear. We’ll help.
EOR vs PEO vs DIY in Georgia: What keeps you safest?
If you’ve ever typed “how to hire in Georgia” into Google and ended up with 14 tabs open and a tension headache, you’re not alone.
Everyone’s pitching something:
“Use a PEO, it’s cheaper!”
“Set up your own entity, it’s more ‘strategic.’”
“Just pay them via Revolut, what could go wrong?”
Here’s the reality: Each route comes with trade-offs. And if safety, speed, and sanity matter to you, you need to pick the right one.
DIY: Set up a local entity (and hope you like paperwork)
Sounds “official,” right? Until you realize:
You need a local legal rep
You’ll register with the Public Registry
You’re on the hook for tax compliance, social contributions, and audits
You’ll need local counsel to draft contracts in Georgian
Oh, and onboarding your first hire might take… two months
Sure, you “own everything”, including every headache.
Risk level: High, unless you’ve got in-country HR, legal, and payroll ops already.
PEO: Like an HR buddy… With boundaries
A Professional Employer Organization partners with you, but you still remain the legal employer. Which means:
You share responsibility for payroll and taxes
You must have a local entity in Georgia
If anything goes wrong, classification issues, terminations, benefits, you’re liable
Think of a PEO like hiring a really helpful assistant who won’t go to court for you.
Risk level: Medium. Safer than DIY, but not foolproof. Only works if you already have a legal presence in Georgia.
EOR: Full compliance shield, zero setup
An Employer of Record (like Team Up) becomes the legal employer on paper, while you manage your team day-to-day.
We handle:
Contracts (local, legal, and enforceable)
Payroll (accurate, on time, tax-compliant)
Benefits and pensions
Terminations (without court drama)
Work permits and visa support
Liability (so you don’t end up on the hook)
You don’t need a Georgian entity. You don’t need to learn how the tax rates in Georgia work. You just hire, and we keep you compliant.
Risk level: Low. Fastest, safest, and most cost-efficient for hiring in Georgia without baggage.
Here’s the 12-point compliance checklist we use with every hire in Georgia
If you’re building teams, remote hiring in Georgia might feel like the easy part. The hard part? Not accidentally breaking the law while doing it.
One outdated contract, one missing clause, or one misfiled tax return, and suddenly you’re “non-compliant.” Worse, your new employee might be entitled to severance, back pay, or even court action.
That’s why we built this checklist. It's not fluff. It's what we follow every time we hire someone in Georgia for our clients, and it’s the same list we’ll use for you.
Contract Language & Structure
Must be in Georgian or a mutually understood language (e.g., English and Georgian)
Needs to be in writing (oral contracts don’t cut it if there’s a dispute)
Should clearly define employment type (fixed vs indefinite)
Include clauses on termination, benefits, probation, duties, IP, and data protection
Why it matters: Georgian courts prioritize clear, mutual understanding. If your contract is vague or in the wrong language, you're exposed.
Employee Classification: Full-Time vs Contractor
Misclassifying a full-time worker as a contractor can lead to penalties
Full-time employees = benefits, tax compliance, labor protection
Contractors = more flexibility but less control, and you bear the risk of misclassification
Why it matters: Authorities are cracking down on this. If it walks, talks, and works like a full-time employee, the law will treat it like one.
Gross Salary (in GEL) & Payroll Terms
Salary must be listed in Georgian Lari (GEL)
Include payment frequency, tax withholdings, and any variable comp
Payroll must run through a Georgian-registered system (or via EOR)
Why it matters: Currency confusion or missed deductions = audit flags.
Work Schedule & Hours
Standard: 40 hours/week
Youth and special workers have tighter limits
Overtime: Capped at 48 hours/week and paid at 1.5x base wage
Why it matters: Overworking without pay triggers back pay claims—and damages your employer brand.
Leave Policies
Paid vacation: 24 days minimum
Unpaid additional leave: 15 days after 11 months
Public holidays: 15 days (non-negotiable)
Sick leave: Not required, but widely offered
Maternity leave: 183 days paid, with up to 730 days total
Why it matters: These are baked into Georgian labor expectations. Get them wrong, and you’re instantly “that employer.”
Pension enrollment & payroll taxes
Pension: 2% from the employer, 2% from the employee, 2% from the state
Personal income tax: 20%
Corporate tax: 15%
VAT: 18%
Why it matters: Even one missed filing triggers automatic penalties and backdated tax claims.
Equipment ownership & stipends
Who owns the laptop? Who replaces it if it breaks?
If you reimburse purchases, document the process
Consider a remote setup stipend for home office or co-working
Why it matters: Equipment disputes are more common than you think. You don’t want to be arguing over a second monitor during offboarding.
IP assignment & confidentiality clauses
Georgian law does not automatically protect your IP
Use clear clauses for IP transfer, NDAs, and data protection
Don’t forget GDPR/PII compliance for EU-based data
Why it matters: Without this, your product roadmap could legally belong to your contractor. Seriously.
Termination terms & notice periods
Minimum 30 days’ notice (unless during probation)
Severance depends on the contract and tenure
Grounds for termination must be listed in advance
Why it matters: Improper termination can result in legal claims, reinstatement orders, or reputational damage.
Work permits & immigration checks
Not needed for Georgian citizens
For foreign workers: immigration visa (Type D), proof of employment, housing, and income
You may need to sponsor their residence permit
Why it matters: Unauthorized employment = heavy fines, blocked operations.
Local compliance reporting
Monthly payroll filings
Employee registration with the pension authority
Adherence to labor inspection requests (yes, they happen)
Why it matters: This is where DIY setups usually fail. EORs like us automate all of it.
Workspace & safety policy (Even for remote teams)
Must provide a safe, ergonomic workspace, even if remote
Co-working access, remote stipend, or policy docs are expected
Document your approach in the onboarding pack
Why it matters: Health and safety obligations don’t vanish just because someone works from home.
Final thoughts
Let’s be real, this wasn’t just a checklist. It was a line in the sand.
Because hiring in Georgia isn’t just about getting someone on payroll. It’s about protecting your business, your IP, your investors, and your sanity.
Every section you just read? That’s not legal trivia. It’s the difference between scaling with confidence and scaling into a lawsuit.
At Team Up, we didn’t write this to scare you. We wrote it so you don’t have to be scared.
So go ahead, chase the talent. Grow the team. Expand into Georgia.
We’ll make sure the foundation doesn’t crack underneath it.
Let’s build smart. Let’s build safely.