Probationary periods and performance management via EOR in Georgia: Labor code framework
- Natia Gabarashvili
- Nov 17
- 13 min read
Table of contents:
Introduction
Hiring in a new country is exciting, until the paperwork starts talking back.
Georgia comes with one of the cleanest labor systems in Eastern Europe, but only if you play by the rules.
That’s especially true when it comes to probationary periods and performance management under Georgian labor law.
Here’s the thing: the EOR probationary period law in Georgia isn’t guesswork. It’s clear, codified, and, if you’re hiring through a compliant Employer of Record, completely manageable.
The challenge is knowing how it actually works, what’s legally required, and how to structure probation and performance reviews without breaking compliance.
Let’s unpack how Georgian law treats probation, what employers must do, and how Team Up’s Employer of Record (EOR) services make it clean, compliant, and fast.
Understanding probation periods under Georgian labor law
Every country treats probation differently. In Georgia, it’s blunt but fair: you get up to six months to decide whether a new employee is the right fit.
That’s written directly into the Georgian Labor Code, Article 9.
It’s not a loose handshake deal. It has to be in writing, agreed to by both sides before the first working day, and logged with the tax office once employment starts.
If it’s not in writing? There’s no probation; your hire automatically becomes permanent.
What that looks like day to day
Most Georgian companies, especially in tech, finance, and logistics, stick with three to four months of probation.
They don’t use it to squeeze unpaid overtime or skirt benefits (that would be illegal).
They use it to check three things:
Technical ability – can they actually do the job?
Reliability – will they show up, hit deadlines, and communicate clearly?
Team chemistry – can they work across time zones and company culture?
That’s it. No psychological testing. No “hustle culture” games.
Foreign founders sometimes assume they can use probation to avoid notice pay or skip taxes. They can’t.
If you fire someone without a valid probation clause or notice letter, the Revenue Service can reclassify it as wrongful termination, and yes, they audit.
Why probation periods matter when hiring through an EOR
An Employer of Record isn’t rewriting Georgian law. It’s your local shield against misunderstanding it.
When you hire through Team Up, the probation period gets baked right into the official employment contract, bilingual (English + Georgian), signed, stamped, and registered.
That matters because Georgia’s inspectors don’t accept English-only contracts in disputes.
They’ll ask for the Georgian version, and if you don’t have one, the employee’s version of the story usually wins.
So your EOR isn’t just filing paperwork, it’s making sure that when something goes wrong (a resignation, a failed review, a conflict), you have legally recognized documents to stand on.
What Team Up handles during probation:
The written contract clause (duration, notice, evaluation criteria).
Registration with the Revenue Service for payroll and taxes.
Translation and legal formatting in Georgian.
Local HR support if an employee disputes feedback or termination.
If you manage it yourself, you’ll need a Georgian lawyer and payroll agent to do all of that, separately.
Structuring a Legally Compliant Probation Period via Employer of Record (EOR) in Georgia
If probation isn’t structured correctly, it doesn’t exist.
Under Georgian law, a valid probation clause must include:
Duration – Up to six months. Most companies choose 90–120 days.
Purpose – Evaluation of skills, behavior, and fit.
Notice period – 3 days, written.
Termination clause – Conditions for ending the contract early.
Bilingual format – Required for legal enforceability.
1. Legal framework: How the Georgian labor code defines probation
The Georgian Labor Code sets a clear structure for how probation works, simple, but strict:
Requirement | Legal Standard | Why It Matters |
Written clause | Must appear in the employment contract before work begins | Verbal agreements have no legal standing |
Maximum duration | Up to 6 months | Anything longer is automatically void |
Purpose | Assessment of qualifications, performance, and cultural fit | Protects against misuse of probation to delay benefits |
Termination rules | 3 days’ written notice (Team Up standard) | Ensures fair process and clear documentation |
Language | Must include a Georgian version | Georgian courts only recognize the Georgian text |
A probation period isn’t a test run you can improvise. It’s a defined legal arrangement that must follow procedure; otherwise, it turns into a full-time employment contract automatically.
2. Structuring the clause within an EOR contract
When you hire through Team Up’s Employer of Record (EOR) in Georgia, every probation clause is drafted and registered to meet Georgian labor standards before onboarding starts.
Here’s what’s built into every compliant contract:
Bilingual text (Georgian + English) — both versions signed, with the Georgian text taking legal precedence.
Fixed term — typically 90 or 120 days, capped at 6 months.
Clear conditions — including notice period, performance criteria, and review process.
Digital registration — filed with the Revenue Service of Georgia before the start date.
Traceable records — stored locally for audits or labor inspections.
With Team Up as your EOR partner, that can’t happen. Your probation framework is airtight from day one, structured, bilingual, and visible to regulators if needed.
3. Why correct structure protects you (and your team)
A legally compliant probation period isn’t just about protecting your company; it’s about creating mutual clarity.
You get legal flexibility and a clear exit route if performance doesn’t match the role.
Your employees get fair treatment, guaranteed pay, and documented expectations from the start.
That balance is what keeps Georgia’s labor market stable, transparent for employers, and predictable for workers.
It’s also why the country ranks among the top three easiest hiring destinations in Eastern Europe, according to the 2024 World Bank “Ease of Doing Business” indicators.
4. Common mistakes that invalidate probation clauses
Even experienced founders slip on technical details that make probation unenforceable:
English-only contracts. Georgian authorities don’t recognize them.
No end date. Without a set timeframe, the employee is permanent by law.
Probation added post-hire. Retroactive clauses are invalid.
Missing termination procedure. You can’t fire someone mid-probation without written notice.
An Employer of Record prevents all four by default. Every probation clause, review deadline, and notice letter is generated and stored according to local compliance rules.
EOR vs DIY: Who handles what during probation
Task Area | Team Up (EOR) | Direct Hiring (DIY) |
Employment Contracts | Drafted in bilingual format (EN + GE), legally binding, reviewed by counsel | Must hire local lawyer + translator; high risk if English-only |
Tax Registration | Automatically handled and reported monthly | Requires a local accountant + registration with the Revenue Service |
Probation Clause Setup | Pre-built compliant clause (duration, notice, evaluation) | Must draft and file manually; risk of invalid probation |
Translations & Filing | Included: all contracts filed with tax authorities | Must source a certified translator + submit personally |
Payroll & Pension Contributions | Managed and filed automatically | Requires monthly submission via RS.ge and manual payment |
Performance Documentation | Stored in the local HR file for audits | Must create, translate, and maintain records manually |
Termination During Probation | 3-day notice, bilingual letter, compliant filing handled | You prepare, translate, and file notices yourself |
Labor Disputes or Audits | Covered: EOR provides legal defense + documentation | You appear before the Revenue Service or the labor inspector alone |
Legal Liability | EOR assumes employer responsibility | Full liability on your company |
Time to Hire | 1–2 weeks | 4–6 weeks minimum |
Performance management during the probationary period
Let’s clear this up: probation isn’t a free trial.
Under the EOR probationary period law in Georgia, it’s a legally recognized employment phase that demands structure, documentation, and fairness from both sides.
You’re not “testing” an employee, you’re formally evaluating them within the framework of the Georgian Labor Code.
That means your obligations as an employer don’t pause during probation. They shift toward one core responsibility: performance management.
What performance management actually means in Georgia
In the Georgian context, performance management isn’t an imported HR trend; it’s a compliance requirement that sits between labor law and fair employment practice.
It covers three main principles:
Regular evaluation and written feedback – You must review performance during probation, not just at the end.
Transparent expectations – Employees have the right to know what’s being measured and how.
Documented reasoning for any termination – If probation ends early, written proof of performance issues is expected.
In plain terms, Georgian labor authorities want to see that decisions are based on evidence, not instinct.
Employer obligations under Georgian labor law
Even when hiring through an Employer of Record (EOR) provider in Georgia, you carry managerial accountability for how you evaluate probationary employees. Here’s what the law expects in practice:
1. Regular review and documentation
Most employers conduct:
One check-in around the 30-day mark;
A mid-point evaluation to track progress;
A final review before confirming or ending employment.
Each review should be written, signed by both parties, and stored in the employee’s file. Without written records, any later dispute tilts in the employee’s favor, because Georgian labor courts interpret silence as non-compliance.
2. Clear communication of expectations
Probation isn’t an experiment. You need measurable goals, deliverables, communication standards, or timelines. If expectations aren’t stated in writing, you can’t claim underperformance later.
Team Up helps define these expectations inside every EOR-managed employment contract. The result? A structured probation plan that’s legally traceable, not subjective.
3. Fair, written feedback
Under Georgian law, feedback isn’t optional; it’s a legal safeguard. When you end probation early, you must be able to show that feedback was shared, acknowledged, and reasonable.
That doesn’t mean bureaucracy; it means notes, emails, or meeting summaries tied to the employee’s contract record.
Probation isn’t risk-free: employees hold full protections
Many founders still assume probation is a “low-risk” period. It’s not. Employees under probation are fully protected by the Labor Code of Georgia, including:
Non-discrimination and equal treatment.
Payment of salary, pension, and taxes.
Paid public holidays and statutory time off.
If you dismiss someone without documented cause, the labor inspector can reclassify the dismissal as unlawful, forcing reinstatement or back pay.
A compliant EOR structure prevents that from ever happening by keeping all records legally valid and timestamped under Georgian jurisdiction.
How EOR platforms manage performance legally
Team Up’s EOR system embeds performance management directly into the probation process, because evaluation isn’t just operational, it’s regulatory.
Here’s how it works step-by-step:
Defined milestones at contract signing: Every employee’s probation contract includes clear performance indicators, what “success” looks like in the role.
Automated reminders for review cycles: The platform alerts managers when it’s time for evaluations, ensuring no probation lapses without review.
Centralized feedback records: Written notes and signed evaluations are stored in the local HR system, compliant with Georgia’s labor inspection requirements.
Legal oversight and bilingual documentation: All feedback and termination forms are bilingual, ensuring they hold legal standing if ever reviewed by Georgian authorities.
This is where most non-local employers struggle. They know how to evaluate talent, but not how to do it within a foreign legal framework.
Team Up bridges that gap: operationally global, legally local.
Termination during or after the probationary period (EOR Rules)
You can end employment during probation, but not casually.
Georgia’s labor code allows termination during the probationary period with no statutory severance required, and often, no advance notice is mandatory (unless the contract specifies it).
However, using a 3-day written notice in the contract is a critical best practice to ensure clear documentation; paper trails matter here.
EOR-managed termination process
When you partner with Team Up:
We issue the bilingual termination notice (English + Georgian).
We calculate and file final payroll and pension contributions.
We handle government notifications and provide the employee with an official termination certificate, as required by the Revenue Service.
This ensures employer of record compliance in Georgiaand keeps your company's reputation intact in the local market.
If you continue after probation, the EOR updates the contract to permanent status automatically, no re-signing or re-registration.
Employee rights during the probationary period
The probation period is not a loophole to test-drive people with zero protections.
Under Georgian law, probationary employees still have full access to:
Paid public holidays (all 17 of them).
Salary and tax deductions are filed like any other worker.
Pension contributions (2% from the employer, 2% from the employee, 2% from the state).
Non-discrimination rules are identical to those for permanent staff.
You can’t pay someone “less because they’re on probation.” You can’t withhold benefits. The only difference is the termination flexibility; that’s it.
And yes, labor inspectors do follow up on anonymous complaints. In 2024, the Labor Inspection Office of Georgia reported over 1,000 employer violations, many tied to probation misuse by foreign companies.
Working through an EOR doesn’t make you invisible. It makes you compliant.
How EORs like Team Up track performance legally and keep records audit-ready
Probation isn’t just giving someone a chance; it’s proving you managed that chance properly.
Under the Georgian Labor Code, employers must show documented reasoning for any decision made during or after a probationary period.
That means written expectations, proof of feedback, and a clear evaluation trail.
An Employer of Record service provider in Georgia makes that simple.
Through Team Up’s EOR framework, all employment records, from the signed contract to the probation review notes, are created, stored, and timestamped in line with Georgian law.
If an employee disputes a termination or claims unfair treatment, those records are your legal protection.
What this looks like in practice:
Probation tracking: start and end dates logged in the system, reminders sent before review deadlines.
Review documentation: summaries signed digitally by both parties.
Termination or confirmation: bilingual paperwork filed with the Revenue Service within 3 business days.
No loose emails. No “he said, she said.” Just a verifiable compliance trail that stands up to inspection.
Common mistakes employers make during probation
Even experienced teams trip over the same issues.
1. No bilingual contract.
A contract written only in English has no standing in a Georgian labor dispute. Inspectors and courts recognize the Georgian version first.
2. Unwritten performance feedback.
Verbal comments don’t count as evaluation. Without written proof, every termination looks arbitrary.
3. Probation without structure.
If you can’t show start and end dates, you don’t have a probation period. The hire defaults to full employment status automatically.
4. Cutting pay or benefits.
Probation doesn’t reduce entitlements. Salaries, pensions, and holidays apply equally from day one.
Team Up closes those gaps automatically.
Every probationary clause, review, and notice letter follows a consistent legal format — written, translated, signed, and filed.
Transitioning from probation to full employment
When a probation period ends, there’s no new paperwork circus.
If the employee passes their evaluation, the contract simply continues. The only change is status, from probationary to permanent, updated in the payroll and Revenue Service records.
That update triggers three things:
Eligibility for full severance protection under Article 38 of the Labor Code.
Carryover of unused paid leave and pension continuity.
Contract renewal notice confirming permanent employment status.
Team Up manages all of that inside the same EOR framework. No re-signing, no lost files, no missed deadlines.
Scaling performance management beyond probation
Probation ends, but performance management doesn’t.
Once employees are confirmed, Georgia’s labor laws expect continued documentation of performance if it influences pay, promotions, or termination later on.
That means annual or semi-annual reviews, updated job descriptions, and written feedback that ties back to measurable objectives.
Team Up integrates this process into its EOR model:
Regular review templates aligned with Georgian legal standards.
Secure HR documentation stored for inspection or investor due diligence.
Payroll updates are filed in sync with role or salary changes.
It’s a quiet system, but it protects both sides.
Why Team Up’s Employer of Record services fit Georgia’s compliance culture
Georgia’s labor environment rewards precision.
Inspectors, auditors, and even the Revenue Service favor employers who follow the book, and penalize those who don’t.
That’s why Team Up’s model is built around transparency.
Every hire sits inside a compliant employment structure that covers:
Local labor contracts drafted and registered in Georgian.
Payroll, taxes, and pensions filed directly through our licensed entity.
Probation and review documentation that satisfies labor inspection requirements.
Local HR support to resolve issues before they escalate.
So when you’re asked, “Can you prove this employee’s contract and review process meet Georgian law?”
You can answer with confidence: “Yes, and here’s the file.”
Final takeaways
Probation in Georgia is real law, not an HR option.
It must be written, bilingual, and registered to be valid.
Employees retain full rights to salary, pension, and holidays during probation.
Documentation is your best defense; verbal feedback doesn’t protect you.
Team Up’s EOR model keeps every step compliant, from the first offer to the final review.
If you’re remote hiring in Georgia, don’t improvise with labor law.
Build your probation and performance framework the right way, legal, local, and low-stress.
Frequently asked questions
1. What is a probationary period under Georgian labor law?
A probationary period is a legally defined trial phase, lasting up to six months, used to evaluate an employee’s suitability for a role. It must be stated in the employment contract before the first working day. If it isn’t written in, the employee is considered permanent by default.
2. How long is the probation period in Georgia?
The maximum probation period in Georgia is six months, though most employers choose between three and four months. The length must be clearly defined in the employment contract, written in both Georgian and English.
3. Can an employee be terminated during the probationary period?
Yes. Either the employer or employee can end the contract during probation with three days’ written notice. Even though it’s probation, the termination must follow formal legal steps: written notice, payroll closure, and official registration of the termination.
4. Do employees on probation have the same rights as permanent employees?
Yes. Employees on probation in Georgia are entitled to all standard employment rights, including paid public holidays, salary payments, pension contributions, and protection from discrimination. The only difference is flexibility around the termination notice.
5. What does an Employer of Record (EOR) do during the probation period?
An EOR such as Team Up acts as the local employer in Georgia, managing all compliance tasks during probation. That includes drafting and registering bilingual contracts, running payroll and tax filings, documenting reviews, and processing compliant terminations or extensions.
6. Can employers pay a lower salary during probation?
No. Georgian law does not allow “probation pay.” Employees must receive the agreed salary and benefits from the first day of employment. Paying less or skipping contributions during probation is a compliance breach.
7. What happens after the probationary period ends?
If an employee completes probation successfully, the employment automatically continues as permanent. No new contract is needed. The EOR updates payroll and tax records, ensuring continuity of benefits and pension contributions.
8. What is performance management during probation?
Performance management refers to tracking and documenting how an employee performs during probation. Employers typically conduct a one-month check-in, a mid-probation review, and a final evaluation. These records must be written and kept on file in case of disputes.
9. What’s the difference between a probationary period and a fixed-term contract?
A probationary period is a testing stage within an employment contract. A fixed-term contract, on the other hand, has a defined end date and is not necessarily probationary. The two can overlap but serve different legal purposes.
10. Who oversees employee rights during probation in Georgia?
Employee rights are regulated by the Ministry of Labour and the Labor Inspection Office of Georgia. These authorities monitor compliance and can audit employers who misuse probation clauses or fail to register employees properly.
