Contract Modification

Can an employer cut my salary unilaterally?

No, salary is an essential term of the contract. Reducing it without your written consent is generally illegal under Georgian labor law.

How do we formalize a promotion?

A promotion involves changes to position and salary. This should be formalized through a written addendum to the contract or a new agreement signed by both parties.

What if the company moves location?

If the new location is accessible via public transport and doesn't drastically change commuting time, it might be a non-essential change. Otherwise, employee consent is needed.

Is a verbal agreement to change terms valid?

No, the Labor Code requires modifications to essential contract terms to be in writing. Verbal agreements are difficult to prove and enforce.

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Employment relationship is a living process that requires changes over time. Salary increases, position changes, work schedule adjustments, or relocation — all require modifications to the existing employment contract. The Labor Code of Georgia strictly regulates changes to essential terms of the contract. Generally, modification requires mutual agreement and written formalization. Unilateral changes by the employer without the employee's consent are often illegal and can lead to labor disputes.

Qualified legal assistance is important to ensure changes are formalized correctly, either as an addendum or a new contract. This protects both parties: the employer from future claims, and the employee from rights violations. A particularly cautious approach is needed when changes involve salary reduction or workplace relocation, as an incorrect process can lead to liability for forced downtime compensation.

What does the Contract Modification service cover?

  • Changing Essential Terms: Legally formalizing changes to salary, position, or working hours via an additional agreement.
  • Promotion and Rotation: Preparing documentation (order, contract annex) for internal transfers reflecting new functions.
  • Workplace Relocation: Legal assurance for changing office address or switching to remote work (especially if commuting becomes difficult).
  • Reorganization: Reflecting structural changes of the company in individual employee contracts.
  • Bonus System Changes: Adjusting rules for variable pay components (premiums, bonuses) in the contract.
  • Notification Procedure: Preparing advance notice for employees regarding changes within statutory deadlines.

Common scenarios requiring this service

A typical scenario is an employee promotion where the position changes and salary increases. A verbal agreement or just an order is not enough; a contract amendment is needed. Another scenario is a temporary salary reduction during an economic crisis. This requires the employee's written consent, otherwise, it is illegal. A third case is the company moving to a new office in a different part of the city; if this substantially changes the employee's commuting conditions, an agreement on the change is necessary.

Georgian Legal Framework

Modification of employment contract terms is regulated by Article 11 of the Labor Code of Georgia. The law distinguishes between essential and non-essential terms. Non-essential terms (e.g., changing employer's address within the same locality) can be changed by the employer's decision with notification to the employee. Changing essential terms (salary, position, time) requires the employee's consent. If the employee disagrees with essential changes, it can be grounds for termination, but only if objective circumstances exist.

Step-by-step service process

The lawyer analyzes the planned change: is it essential? If yes, a notice to the employee and a draft agreement are prepared. Negotiations follow. If the employee agrees, an addendum is signed, becoming an integral part of the main contract. If they disagree, the lawyer assesses risks and offers alternative solutions to the employer.

Why choose a specialist on Legal.ge?

Mismanagement of contract changes often leads to conflict and litigation. On Legal.ge, you will find lawyers who will help you implement any changes to your company's HR documentation painlessly and legally.

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