Employing foreign nationals in Georgia is subject to special regulations, violation of which leads to substantial fines for the employer. This service (Foreign Employee Compliance) aims to help companies fully meet the requirements of the Law on Labor Migration. Employers are obligated not only to execute an employment contract but also to register every foreign employee in the unified electronic database of the Ministry of Health within 30 days of employment. It is also necessary to update information in case of termination of employment or changes in conditions.
Ensuring compliance involves not just database registration but also determining tax residency and correct income tax taxation (different rules apply to resident and non-resident foreigners). Specialists featured on Legal.ge conduct an audit of your HR documentation, ensure registration in the database, and provide recommendations to avoid sanctions from the Labor Inspection.
What does the Foreign Employee Compliance service cover?
- Electronic Registration: Registering foreign employees on the Ministry of Health portal (labour.moh.gov.ge) within statutory deadlines.
- Database Management: Periodically updating information in the database in case of contract extension or termination.
- Employment Contract Adaptation: Drafting contracts bilingually (in Georgian and a language understandable to the foreigner) considering immigration requirements.
- Tax Consultation: Determining the taxation regime for non-resident individuals (20%) and pension contribution obligations (for permanent residents).
- Liaison with Labor Inspection: Representation during inspections verifying the legality of foreign employment.
- Vacancy Registration: Fulfilling the obligation to pre-announce vacancies on the Labor Agency portal in certain cases.
Common scenarios requiring this service
A typical scenario is a branch of an international company with around 20 foreign employees (Expats). The HR manager needs help registering them on time and tracking deadlines. Another scenario is a company hiring foreign students part-time; registration is mandatory for them too. A third case is a Labor Inspection audit discovering unregistered foreign employees; immediate response and appealing the fine are required.
Georgian Legal Framework
The main regulatory act is the Law of Georgia on Labor Migration, effective since 2015 but significantly updated in 2023. The law obliges any employer (legal or natural person) to register a foreigner employed in Georgia. Failure to comply leads to fines from 1000 to 3000 GEL. The Tax Code is also important regarding non-resident taxation.
Step-by-step service process
The process begins with an audit of existing foreign staff. The lawyer checks their status (visa, residence). Then, an employer profile is created on the portal, and data is uploaded. The lawyer also checks employment contracts to ensure compliance with the Labor Code. The service can be one-time (registration) or long-term (Compliance monitoring).
Why choose a specialist on Legal.ge?
Regulations on employing foreigners change frequently. On Legal.ge, you will find lawyers who constantly monitor changes and know how to protect your company from bureaucratic errors.
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