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An employment contract with a foreign employee in Georgia

An employment contract with a foreign national is two questions, not one. First: what the contract between employer and employee says. Second: on what basis this person is entitled to work in the country. They are answered differently, and confusing them is expensive for both sides.

A contract and the right to work are different things

A signed employment contract does not by itself give a foreign national the right to work, and holding a status in the country is no substitute for a contract. The employer who thinks the contract is enough and the employee who thinks the status is enough are making symmetrical mistakes.

So the order is usually this: first establish on what basis the person is entitled to work and what has to be arranged for that, and only then sign a contract on terms that do not contradict that basis.

What the contract should fix

Beyond the usual terms, a contract with a foreign employee is worth spelling out on points that do not matter for a local one:

• The position and the actual duties. They have to match what was stated when the permit was arranged: a mismatch is the classic problem at an inspection and on renewal.
• Place of work. Office, remote, hybrid - and what happens if the employee works from another country.
• The term of the contract and how it relates to the term of the permit and of the status.
• Who handles the paperwork and who bears the related costs.
• What happens if the status is not renewed - this is provided for in advance, otherwise it gets settled on emotion.

The employer's liability

Engaging a foreign national without the proper arrangements is the employer's risk, not only the worker's. For a company it can mean penalties and separate consequences for later applications for permits for other staff.

Separately, an employer engaging foreign workers may be subject to requirements of its own - including ones about the company's own operating figures. Their current values are checked on the date of filing: the law changes here, and last year's experience is a poor guide.

A paper arrangement does not work

A company set up solely in order to "employ" someone, with no signs of real activity, is a weak construction. When documents are reviewed, what is examined is not whether a contract exists but whether the employer actually operates: whether there is turnover, filings, other staff, contracts with clients.

The same check surfaces at renewal, and that is where it emerges that there was no activity over the year. A renewal in that situation is already a difficult matter.

Dismissal and status

If the employee's status is tied to working for a particular employer, ending the employment affects the status too. That does not mean the person immediately loses the right to be in the country, but it does mean the situation acquires a deadline and calls for action - a change of basis, a new employer or another route.

A practical point for both sides: discuss this before the dismissal, not after. For the employer, so as not to create a dispute; for the employee, so as not to be left without status because a deadline passed.

Family members

The status of an employee's family members is usually derived from theirs: it is issued for the same term and ends with it, rather than existing independently. A change of job or of basis therefore affects the whole family at once, and planning has to take that into account.

Taxes and payments

Hiring an employee creates obligations to calculate and pay taxes and to file. A separate question is the employee's own tax residence: working for a Georgian company does not automatically end their obligations in the country where they remain resident. These two questions are worked out separately, and better before the contract is signed than after the first payment.

What to prepare for the consultation

• The employee's citizenship and current status in Georgia.
• The international passport and every valid Georgian document.
• The intended position and the actual duties.
• Place of work: office, remote or hybrid.
• The employer's incorporation documents and extract from the register.
• Details of the company's activity: turnover, filings, other employees.
• The draft employment contract, if one has been prepared.
• Details of family members who expect a status alongside the employee.
• Any previous refusals of permits.

Disclaimer. This material is for reference, sets out the general procedure and is not legal advice. It has been prepared without regard to the circumstances of any particular matter and cannot serve as a basis for decisions on filing documents, entering transactions or taking other legally significant steps. Reading it or relying on it does not create a lawyer-client relationship. Document requirements, fee levels and time limits are set by Georgian legislation and secondary rules; the law and the practice of applying it change, so the currency of any information is checked on the date of the enquiry. Decisions in state procedures are taken by the competent authority, and no outcome can be guaranteed.