What Drafting a Director's Contract Means
A director's employment contract is the most numerically loaded drafting task in the Georgian Labour Code: each of its clauses is tied to a specific article, and each article carries specific numbers. The first question is the term. Where the employment relationship exceeds 1 month, the contract requires written form. A fixed-term contract — unless the term is 1 year or more — may be concluded only on a ground listed by law: work of a specific volume, seasonal work, a temporarily increased volume, replacement of a temporarily absent employee, subsidised remuneration, or another objective circumstance.
The lawfulness of a fixed term is also tested by numbers: where the term exceeds 30 months — or the relationship, through consecutively concluded fixed-term contracts, exceeds 30 months — the contract is deemed open-ended. Consecutiveness is defined precisely: continuation of the existing contract immediately upon expiry, or conclusion of a new one within 60 days of expiry. The exception is the start-up: for an entrepreneur within 48 months of state registration the restriction does not apply, though within that frame a fixed-term contract cannot be shorter than 3 months.