Termination and Severance in Georgia: Notice, Grounds and Challenge Periods

Employment termination in Georgia is governed by statutory grounds and procedures. There is no single notice or severance formula for every termination.

The first step is to identify the actual legal ground under Article 47 of the Labour Code. The notice, severance and evidence consequences then depend on that ground.

Termination must fit a statutory ground

Article 47 lists the grounds on which an employment agreement may terminate. They include, among others:

• economic, technological or organisational changes requiring downsizing;
• expiry of a fixed-term agreement;
• completion of the agreed work;
• employee resignation;
• written agreement between the parties;
• incompatibility of the employee's qualifications or professional skills with the position;
• specified serious or repeated breaches of employment obligations;
• long-term incapacity for work under the statutory conditions;
• specified court decisions;
• liquidation of a legal-person employer; and
• other objective circumstances justifying termination.

The Code also prohibits termination on grounds outside Article 47 and contains protections against discriminatory and certain protected-period terminations.

When the 30-day / one-month formula applies

For employer termination on the Article 47 grounds covering:

• economic/technological/organisational downsizing;
• incompatibility of qualifications or professional skills;
• qualifying long-term incapacity for work; or
• other objective circumstances,

Article 48 allows the employer to give at least 30 calendar days' written notice and pay severance of at least one month's remuneration.

The shorter-notice alternative

For those same four grounds, the employer may instead give at least three calendar days' written notice and pay severance of at least two months' remuneration.

This statutory choice should not be generalized to termination grounds for which Article 48(1)-(2) does not prescribe the same formula.

Written reasons and challenge periods

An employee may, within 30 calendar days after receiving the employer's termination notice, ask the employer in writing for a written substantiation of the termination ground.

The employer must provide that written substantiation within seven calendar days after the request.

The Code then provides 30-day court challenge periods tied to receipt of the substantiation, or to the relevant statutory point where no substantiation is requested or supplied.

If the employer fails to provide the requested substantiation within the seven-day period, Article 48 also shifts the burden of proof for determining the facts of the dispute to the employer.

Final settlement

Article 44 states that when labour relations terminate, the employer must make the final settlement within no more than seven calendar days, unless the employment agreement or law provides otherwise.

Final settlement should therefore be planned together with the termination communication rather than treated as a later administrative task.

Invalid termination can create significant remedies

If a court declares an employer's termination decision void, Article 48 provides for remedies that can include:

• reinstatement;
• an equal job; or
• compensation determined by the court.

An employee may also claim lost earnings in the circumstances specified by the Code.

Documentation should follow the legal ground

Before issuing a notice, an employer should check:

1. the exact Article 47 ground;
2. the facts and evidence supporting it;
3. whether the contract or incorporated internal rules matter;
4. the notice and severance rule for that ground;
5. protected-status or discrimination issues;
6. final-payment obligations; and
7. the wording of the termination notice.

For an employer or employee termination review, see Labor & Employment Law or contact TK Counsel.