How to onboard and manage teams hired via Employer of Record (EOR) in the Caucasus Region
- Natia Gabarashvili
- Sep 8
- 12 min read
Updated: Sep 26
Table of contents:
Introduction: Onboarding Without the Chaos
Let’s face it, onboarding is rarely the seamless process we hope for. It's a familiar story: the laptop that’s lost somewhere in the customs maze, contracts that mysteriously show up in Comic Sans (seriously, who thought that was a good idea?), and the poor new hire sitting in Slack limbo, waiting to be added to a channel they don’t know exists.
If you’ve been through this, you know that onboarding chaos is almost a rite of passage in the world of remote hiring. But here’s the twist: it doesn’t have to be that way.
Now, drop this mess into an international context. Let’s say your company is onboarding a new hire in the Caucasus region, which can mean hiring in countries like Georgia, Armenia, and Azerbaijan.
In these emerging markets, navigating local labor laws, tax codes, and social insurance systems without a clear understanding can make onboarding feel like trying to read a legal contract written in a foreign language… oh wait, it actually is.
That’s where an Employer of Record (EOR) comes in.
An EOR takes the complicated legal, tax, and administrative work off your plate, so your new hires can start work smoothly and compliantly without you needing to open a local entity or become a subject matter expert on each country’s labor laws.
The beauty of using an EOR is that you get all the perks of having a local team while avoiding the bureaucratic nightmares. Your EOR provider in the Caucasus handles everything from contracts and payroll to benefits and compliance. You focus on what you do best: growing your business and managing the talent. Simple, right?
So, whether you’re hiring in Tbilisi, Yerevan, or Baku, this guide will help you navigate the onboarding process smoothly, ensuring you avoid the chaos and set your team up for success.
What specific onboarding documents does an EOR require in the Caucasus Region?
Ah, paperwork, the necessary evil of any new hire.
But here’s the good news: working with an Employer of Record in the Caucasus region makes the paperwork part a whole lot easier.
Your EOR will guide you through collecting and submitting the right documents for each country, Georgia, Armenia, and Azerbaijan have slightly different requirements, but overall, the process is pretty standard across the region.
Here’s a rundown of the essential documents you’ll need for onboarding employees in the Caucasus:
Valid Passport or National ID: This is the basic building block of the onboarding process. Your EOR will need to verify your new hire’s identity, and the passport or ID is a non-negotiable part of the paperwork.
Bilingual Employment Contract: In countries like Georgia and Armenia, the law requires that employment contracts be in both local languages and English. This ensures that the terms are understood by all parties and are enforceable in court. An English-only contract won’t hold up, so your EOR will make sure everything is compliant.
Taxpayer Registration Forms: Employees in the Caucasus region need to be officially registered with the local tax authority for income tax purposes. Your EOR will handle the submission of the registration forms and ensure everything is set up properly for payroll.
Social Security and Pension Enrollment Forms: Social security and pension contributions are mandatory in most countries in the Caucasus. Your EOR will register your employee with the relevant government agency (like Georgia’s Social Security Fund) and ensure that all contributions are made on time.
Bank Account Details: For salary transfers and other payments, the employee’s bank details are necessary. This can be done locally, and your EOR will ensure that everything is set up smoothly.
Proof of Address: In some cases, you may need proof of residence, such as a utility bill or rental agreement, to confirm the employee's place of residence.
Emergency Contact Info: While not always legally required, having an emergency contact form is good practice for all employees, remote or otherwise.
By partnering with an EOR, you eliminate the guesswork that comes with figuring out what forms to submit and how to submit them. EORs are the gatekeepers of compliance, and they ensure everything is filed properly and on time.
Onboarding remote employees: processes, tactics, and expert advice
Kazakhstan and the wider Caucasus region offer an increasingly remote-ready workforce. The global shift toward remote work has only accelerated this trend, with professionals in tech, marketing, finance, and operations leveraging digital tools to work seamlessly across borders. In fact, the Caucasus is home to an educated, tech-savvy, and bilingual workforce that’s just waiting to be tapped.
However, remote onboarding presents its own unique challenges. It’s not as simple as sending a laptop and hoping the rest will follow. So, how can you onboard effectively in the region? Let’s break it down:
Key Onboarding Components:
Legal and Payroll Setup: The first step is to make sure all legal requirements are met, including registration with the local tax authority and social security system. Your EOR will ensure that all payroll taxes and benefits are compliant, avoiding any unpleasant surprises. Once the administrative work is done, you can focus on getting your new hire up to speed.
Welcome Call and Company Orientation: A welcome call is an essential first step. It’s your chance to introduce the new hire to the team, share the company’s vision, and explain how things work within your organization. Remote onboarding can feel isolating, so this call helps make that first human connection. Give them the lay of the land: What’s the culture like? What tools do you use for collaboration? What’s expected in the first few months?
Tools Access and Setup: Ensure your new hire has the tools they need to succeed, Slack, Zoom, Google Drive, Jira, etc. Tech setup is often the most crucial part of remote onboarding. You don’t want your new hire spending the first week waiting for their laptop or access to critical systems. With an EOR managing equipment leasing and software setup, everything is ready to go before your new hire’s first day.
Role-Specific Training: Generic onboarding materials are fine for the basics, but your new hire needs role-specific training to understand exactly what they’ll be doing and how it aligns with company goals. If they’re in development, get them access to code repositories and staging environments. If they’re in finance, make sure they understand the reporting systems. Tailored training leads to quicker integration and higher productivity.
Buddy System and Human Connection: Working remotely can feel like working in a vacuum if you don’t actively make an effort to connect. Assigning a mentor or buddy for the first few weeks gives your new hire someone they can turn to for advice, whether it’s about the company or where to get the best coffee in Tbilisi. This is critical for employee retention and cultural integration.
Step-by-Step Guide to Remote Onboarding in the Caucasus
Onboarding remotely in the Caucasus region doesn’t have to be more difficult than onboarding an in-office hire; it just requires more intentionality. Here’s a simple step-by-step guide to get you started:
1. Start with a Welcome Call
The first impression is key. A quick call introducing the team, leadership, and company values makes a world of difference. It’s also a chance to explain expectations, share your company’s mission, and get the new hire excited to be part of the team.
2. Run a Virtual Orientation
Forget the all-day Zoom marathons. Break it up into smaller chunks to keep things engaging and digestible. Start with the company overview, then dive into the day-to-day processes and tools. Make sure your new hire feels confident about using your collaboration tools.
3. Assist with Technical Setup
No one should spend the first week trying to figure out how to log in. Ensure your new hire has all the necessary tech, whether it’s laptops, software, or system access. EORs are experts at managing this process locally, so everything should be ready to go from day one.
4. Provide Role-Specific Training
Generic onboarding slides won’t cut it. Make sure your new hire gets hands-on training in the systems they’ll be using. Whether they’re a developer, marketer, or finance professional, tailored training helps them hit the ground running.
5. Integrate Into Team Workflows
Remote ≠ disconnected. Invite your new hire into Slack channels, Jira boards, and team retrospectives. Integration into team workflows makes them feel like a part of the team. Assign them a buddy to guide them through the early days and ensure they’re not lost in the virtual ether.
Costs and Fees When Scaling EOR Hires in the Caucasus
Hiring through an Employer of Record in the Caucasus isn’t just about avoiding compliance headaches—it’s also about predictable, scalable costs. The good news? Unlike the wild west of international payroll, EOR pricing is mostly transparent, so you can plan ahead without constantly refreshing spreadsheets in panic mode. The slightly bad news? Like any investment in people, costs do scale when you start adding perks, benefits, and bigger teams—but here’s how to understand the breakdown so nothing sneaks up on you.
Base Costs: The Non-Negotiables
Think of these as your “set it and forget it” numbers: the items that don’t disappear no matter how many people you hire.
1. Salaries:
Mid-level professionals: Expect roughly $1,200–$2,000 per month depending on the country. Georgia tends to be slightly more affordable than Armenia or Azerbaijan, especially for IT and finance roles.
Senior professionals: $2,000–$3,500 per month. Senior hires bring expertise, and while their cost is higher, the ROI is immediate—especially if you’re onboarding tech talent capable of running projects without constant supervision.
2. Employer Contributions:
Social security, pensions, and health contributions range from 18–25%, varying slightly per country. For example:
Georgia: ~22%
Armenia: ~21%
Azerbaijan: ~25% These contributions are mandatory, and the EOR ensures they’re filed correctly to avoid fines.
3. Flat EOR Fee:
With TeamUp, the standard is €199/month per employee, regardless of salary. Compare that to percentage-based pricing with other global providers—suddenly, your senior developer costs skyrocket just because of their title. Flat-fee pricing keeps costs predictable and scalable, which is essential for startups and SMEs.
Scaling Extras: Where Your Budget Flexes
Once your base costs are accounted for, there are optional extras that enhance the employee experience, improve retention, and help you compete for the top talent in the region.
1. Health Insurance:
~$49–€150 per month per employee, depending on the coverage. While not always mandatory, offering a robust healthcare plan demonstrates that you value your employees, which can be especially persuasive for tech and finance professionals in the Caucasus.
2. Training & Professional Development:
€49–€150/month. This could cover online courses, language training, certifications, or workshops. The ROI? Faster onboarding, better engagement, and less churn. Think of it as investing in employee velocity.
3. Coworking Memberships:
Particularly relevant in Tbilisi, Yerevan, and Baku. Cost: ~€120–€150/month. Some employees prefer coworking over a home office for productivity, a professional environment, and social interaction. Providing coworking options signals that you care about their work experience.
4. Equipment Leasing:
~€69/month for laptops, monitors, and accessories. Your EOR handles procurement locally, avoiding customs delays and shipping nightmares. It also clarifies ownership: no more “who owns the laptop?” battles during offboarding.
Practical Tip: Budgeting by Country
Georgia: Slightly lower base salaries and contributions, ideal for startups testing talent pools.
Armenia: A sweet spot for IT and software development, with predictable EOR costs.
Azerbaijan: Slightly higher contributions but access to finance, banking, and multilingual talent.
When scaling across multiple countries, it’s easy to underestimate cumulative perks costs. Using a single EOR partner like TeamUp lets you consolidate billing and standardize costs, which is a lifesaver for finance teams managing regional budgets.
In summary: base costs are predictable, optional benefits scale your team’s engagement and retention, and EOR fees remain transparent—so you can forecast hiring costs confidently, even for cross-border teams.
Who provides equipment & workspace? (avoiding laptop custody battles)
Let’s talk about what often becomes the most absurd HR drama: equipment and workspace management. Without clear processes, onboarding can quickly descend into a series of tense emails and passive-aggressive Slack messages:
“Who owns the laptop?”
“Why didn’t I get my monitor?”
“Was this desk ever ergonomically approved?”
When hiring across the Caucasus, this drama can multiply if employees are remote or if shipping is international. That’s why EORs handle employee benefits, insurance & workspace arrangements locally, turning potential headaches into a smooth, structured process.
Equipment: Employer Funds, EOR Handles Logistics
The employer funds the necessary equipment: laptops, monitors, headsets, keyboards, you name it. But instead of you managing shipments from the U.S. or EU (with customs delays and the inevitable “lost in transit” nightmare), your EOR sources or leases the equipment locally.
Cost: ~€69/month per employee for full equipment leasing.
Benefit: Immediate setup, local warranty support, and no cross-border customs issues.
The EOR also manages ownership tracking, so offboarding is as simple as handing the equipment back without debates or “but it’s mine now” emails.
Workspace: Flexibility Is Key
The Caucasus region offers a variety of remote and hybrid work environments. EORs can manage:
Fully Remote Setups: Most employees work from home, especially in Tbilisi or Yerevan.
Coworking Spaces: ~€120/month in major cities like Tbilisi, Baku, or Yerevan. Offers reliable internet, professional desks, and social interaction.
Small Office Pods: For teams that require occasional collaboration or project-specific pods.
Compliance: Safe Work Environments Are Non-Negotiable
Even if employees work remotely, labor law in Georgia, Armenia, and Azerbaijan mandates safe working conditions. Ergonomic furniture, proper lighting, and equipment safety aren’t just perks—they’re legal requirements. Your EOR ensures compliance to protect both employees and the company.
Takeaway
Using an EOR for equipment and workspace management removes uncertainty, ensures compliance, and provides employees with a professional, productive environment without you having to manage logistics across three countries. It’s a small investment with big returns in engagement and retention.
Contractors vs EOR employees in the Caucasus: the messy truth
Hiring contractors may sound like a shortcut: lower costs, fewer benefits, less paperwork. But in the Caucasus, the risks can outweigh the savings.
Misclassification Risks: Treat a full-time employee like a contractor, and local labor authorities in Georgia, Armenia, or Azerbaijan won’t be forgiving. Fines, back taxes, and social contribution liabilities are a real possibility.
IP Ownership: Contractors may retain ownership of work unless explicitly defined. This is a huge risk if you’re developing software, marketing campaigns, or financial products.
Payroll Complexity: Contractors still need proper tax filings in many cases. Treating them incorrectly can trigger audits or fines.
EOR employees, on the other hand:
They are fully compliant with local labor laws.
Receive proper benefits and social contributions.
Allow your HR team to focus on performance and culture, not compliance headaches.
Bottom line: for cross-border teams in the Caucasus, EOR hires are safer, faster, and more predictable than trying to hire contractors directly.
Day-to-day management with EOR hires
Hiring through an EOR doesn’t mean you lose control of your team. Instead, it allows you to focus on what really matters: productivity, culture, and output. Here’s how day-to-day management works:
Workflow Integration: Employees are added to Slack, Jira, Notion, or whatever your team uses. They’re integrated fully, not treated as outsiders.
Performance Management: Managers still set goals, assign tasks, and run evaluations. The EOR doesn’t interfere with day-to-day project work.
Administrative Offloading: Payroll, contracts, tax filings, and benefits are all managed by the EOR, removing your legal and administrative burden.
In short, you manage people, your EOR manages compliance. This separation ensures employees are happy, productive, and legally protected, while your HR team doesn’t drown in paperwork.
How do leave and probation rules affect onboarding?
The Caucasus region has clear leave and probation rules, and understanding these can help ensure your onboarding timeline stays smooth.
Probation:
The probation period in the Caucasus region can last up to three months. However, it’s typically clearly stated in the employment contract, and it allows both parties to assess the fit. During probation, termination is more straightforward, but employees still receive full salary and basic rights.
Leave Entitlements:
Paid Annual Leave: Employees are entitled to 15–30 days of paid leave, depending on seniority.
Public Holidays: Around 15 days per year (depending on the country).
Sick Leave: Covered by both the employer and state contributions.
Maternity Leave: Paid for 126 days.
The Effect:
Probation allows you to evaluate your employee and provide feedback. The leave rules ensure your new hire won’t be absent for a while after probation, but you’ll need to plan accordingly for public holidays and other forms of leave.
Which Compliance Risks Should I Monitor with EOR Hires in the Caucasus Region?
Even when partnering with an EOR, it’s important to be aware of the legal and compliance risks involved:
Misclassification of Contractors vs. Employees: A common risk when working across borders, especially in regions where tax laws and labor codes vary. Ensure your EOR properly classifies full-time workers as employees.
Weak or Non-localized Contracts: Contracts must comply with local labor laws. Not all countries in the Caucasus recognize English-only contracts—so make sure your EOR helps with local language contracts.
Payroll and Tax Filing Errors: Income taxes, social contributions, and pensions are crucial for legal compliance in the Caucasus. Ensure all payroll taxes are filed correctly to avoid penalties.
Data Protection Compliance: The GDPR-like laws in many Caucasus countries mean that mishandling personal data is a serious offense. Confirm that your EOR uses secure systems and complies with data protection regulations.
Immigration Compliance: If you hire foreign employees, be aware of the work permit and visa requirements in countries like Georgia, Armenia, and Azerbaijan. Ensure the EOR processes these documents correctly.
Conclusion: EOR = Growth Without Compliance Headaches
The Caucasus Region offers massive potential for scaling teams, but navigating the local labor laws, tax codes, and compliance regulations doesn’t have to be a headache. Partnering with an Employer of Record (EOR) simplifies the process by handling everything from contracts and payroll to benefits and compliance.
By using an EOR, you can scale your team quickly and legally, avoiding the complexities of local entity setups while keeping your employees engaged and compliant. The best part? You can focus on your team’s growth and performance, not on chasing paperwork and tax filings.
Explore Team Up’s Employer of Record services in the Caucasus and start scaling your team without the legal headaches today!
