Highlights of the Recently Adopted Amendments to the Georgian Labor Code

September 25, 2013

Following months of legislative deliberation involving multiple parties, including the International Chamber of Commerce, the American Chamber of Commerce, and other similar international groups, the Parliament of Georgia adopted a comprehensive package of amendments (the “Amendments”) to the Labour Code of Georgia (the “Code”), which are expected to come into force in the coming weeks. The Amendments themselves and the related approval process attracted serious criticism from both the business community and the trade unions. In particular, the business community fears that the Amendments provide far too many protections for employees at the expense of employers and may harm Georgia’s business-friendly reputation, negatively affecting the inflow of foreign investment. The drafting of the Amendments and the parliamentary approval process have also come under criticism for being non-inclusive of all the relevant stakeholders. Further, the Amendments have come under fire from trade unions, who fault the vagueness and open-endedness of the employee protections, which, they argue, stand little chance of being properly enforced.

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