🇬🇪 Labor Code Articles 37 & 38 • Statutory Final Settlement

Georgia Employment Severance & Notice Period Calculator

Compute statutory dismissal severance pay, mandatory written notice periods, accumulated vacation cash-outs, and net take-home settlements under the Organic Law of Georgia (Labor Code).

Quick Presets:
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Contractual gross remuneration

Labor Code Art. 38 statutory options

Accrued unused paid vacation days

Estimated Net Final Settlement
₾ 0.00
≈ $0 USD
Notice Requirement: 30 Days
Total Gross Settlement: ₾ 0.00
20% PIT Withholding: ₾ 0.00
Notice Period Mandatory 30 Days
Severance Compensation (Gross) ₾ 0.00
Leave Encashment (Gross) ₾ 0.00
20% PIT Tax Deduction ₾ 0.00

Labor Code of Georgia: Termination Notice & Severance Matrix

Termination Procedure Mandatory Notice Statutory Severance Payment Deadline Tax Treatment
Standard Employer Dismissal (Option A) Min 30 calendar days written ≥ 1 month gross salary Within 30 calendar days 20% Flat PIT
Short Notice Dismissal (Option B) Min 3 calendar days written ≥ 2 months gross salary Within 30 calendar days 20% Flat PIT
Gross Misconduct / Disciplinary (Art. 37) No notice required 0 GEL (Nil) Earned wages in 7 days 20% PIT on earned wages
Arbitrary / Unlawful Dismissal (Court Order) Ruled void / breach Reinstatement or 3–12 mo pay Per court enforcement writ 20% PIT on compensation

Statutory Dismissal Framework under Georgian Labor Law

In Georgia, employment dismissals are tightly regulated under Articles 37 and 38 of the Organic Law of Georgia – Labor Code of Georgia. An employer may terminate an indefinite employment agreement only upon specific statutory grounds, including economic, technological, or organizational changes necessitating staff redundancies, gross qualification mismatch, or serious breach of contractual duties.

Key Termination Deadlines & Wage Rights

  • Earned Wages & Leave Settlement: Under Article 38(2), accrued unpaid salary and compensation for unused annual leave must be paid within 7 calendar days following the termination of employment.
  • Severance Payment Window: The statutory severance amount (1 or 2 months of salary depending on the notice option selected) must be fully paid within 30 calendar days after contract cessation.
  • Probationary Periods: Employees undergoing an agreed probation period (maximum 6 months under Article 9) may be terminated with only 3 days written notice without severance compensation, unless stipulated otherwise in the individual contract.

Frequently Asked Questions

What are the statutory severance notice rules under the Labor Code of Georgia?

Under Article 38 of the Labor Code of Georgia, employers must adhere to either: Option A (provide at least 30 calendar days written notice plus compensation of at least 1 month's salary paid within 30 days) or Option B (provide at least 3 calendar days written notice plus compensation of at least 2 months' salary paid within 30 days).

How is unused annual leave compensated upon employment termination?

Employers are legally required to cash out all accrued but unused paid annual leave upon termination. The daily rate is calculated gross salary divided by 21.67 working days, multiplied by the remaining leave balance.

Is statutory severance pay subject to personal income tax (PIT) in Georgia?

Yes. Statutory severance payments and unused leave encashments are considered employment income under Article 101 of the Tax Code of Georgia and are subject to the standard flat 20% Personal Income Tax (PIT).

What is the statutory deadline for the final settlement payment in Georgia?

Under Article 38(2) of the Labor Code, final settlement comprising unpaid earned salary and leave encashment must be settled no later than 7 calendar days after contract termination. Severance compensation must be paid within 30 calendar days.

What remedies exist for unlawful dismissal without statutory grounds in Georgia?

If a termination is ruled unlawful or arbitrary by a court or Labor Inspection body under Article 38(8), the court may order reinstatement with full back pay or substantial compensation typically ranging from 3 to 12 months of average earnings.

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Engr. Muhammad Shahzad

Verified Compliance Author

Principal Civil & Systems Software Engineer specializing in European and Caucasian labor legislation, severance dispute mechanics, and employment taxation under the Georgian Revenue Service (RS.ge) and Labor Code.

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📊 Revenue Service of Georgia (RS.ge) & Pension Agency Matrix

Statutory Component / Legal Deduction Item Calculated Amount (GEL)
Primary Net / Statutory Payable Amount 0.00 ₾
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Engr. Muhammad Shahzad

Principal Financial Systems Architect & Caucasus Fiscal Integration & Revenue Service of Georgia Architect

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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