Strategic HR

HR Risk Assessment

How are employment risks priced?

By articles and fine brackets — event, norm, price, mitigation.

Which violation is the most expensive?

Discrimination — a triple fine, doubled on repetition (Article 78).

What does mass dismissal require?

Consultations, written information and 45-day advance notice (Article 49).

Can employee rights be reduced by contract?

No — the Article 1 floor caps every risk line.

4 min·8 Feb 2026

Assessing employment-relationship risks in Georgia is not a consulting methodology but numeric law: behind each risk stands a numbered article, and behind each violation a concrete fine bracket. A risk map built on the Labour Code consists of three layers: the risk events (Article 47 — grounds and rules of termination; Article 49 — mass dismissal), the priced exposure (Articles 77 and 78 — the fine matrix and triple penalties) and the perimeter (Article 1 — the law's scope and floor).

Risk Events — Articles 47 and 49

Termination of an employment contract is the most frequently contested risk, and Article 47 enumerates its grounds: economic, technological or organizational change requiring a reduction of the workforce; expiry of the term; completion of the work; the employee's own written departure; agreement of the parties; mismatch of qualification or professional skills; gross or repeated breach of an obligation imposed by the contract or internal rules; and other objective circumstances. For risk assessment one critical detail hides here: a breach of an obligation imposed by internal rules becomes a ground only where the rules are part of the contract. The second risk event is mass dismissal (Article 49): termination within 30 calendar days on grounds not conditioned by the person or conduct of the employee — with at least 10 employees in an organization of more than 20 but fewer than 100, or at least 10 percent where more than 100. A planned mass dismissal requires consultations, written information to the association or representatives, and prior notice to the minister and the affected employees at least 45 calendar days in advance — the dismissal takes effect after 45 calendar days from that notice.

Measuring Exposure — Articles 77 and 78

Every violation has a price. The brackets of Article 77: a natural person with income up to 100 000 GEL in the previous year — a fine of at least 200, not more than 400 GEL; with 100 000 GEL or more — at least 300, not more than 800 GEL; a VAT-registered employer with operations up to 100 000 GEL — at least 300, not more than 800 GEL; from 100 000 to 500 000 GEL — at least 400, not more than 900 GEL; above 500 000 GEL — at least 600, not more than 1 000 GEL; other cases — at least 200, not more than 400 GEL. A violation against a minor, a pregnant woman or a person with disabilities doubles the fine; repetition within a year doubles it again. In the discrimination contour Article 78 adds the highest multiplier: breach of the principles of non-discrimination — direct and indirect — harassment, sexual harassment, equal pay for equal work and reasonable accommodation, draws a triple fine, doubled on repetition; and an employer informed of harassment who fails to act also answers.

Risk assessment begins with the catalogue of termination grounds: economic, technological or organizational changes making a reduction of the workforce necessary; expiry of the term; completion of the work; agreement; mismatch of qualification or professional skills; a gross breach of duties; a repeated breach where a disciplinary measure has already been applied within the last 1 year; prolonged incapacity exceeding 40 consecutive calendar days or 60 calendar days in total within 6 months. A breach of duties imposed by internal rules is a ground only where the rules form part of the contract; and where termination rests on another objective circumstance, the employer must substantiate it in the written notice. The saving rule of the law deserves equal attention: no contract clause may prescribe norms that worsen the employee’s position compared with the statute — therefore every template, bonus scheme and internal policy must be read against the statutory floor, and every contemplated dismissal mapped to a ground the law actually names.