Negotiating Compensation and Exit: The Lawful Frame
Negotiated exits in Georgia are an institution of free bargaining — but not unlimited ones. Their lawful frame is written into four articles of the Labour Code: the grounds of termination, the notice procedure and compensation floors, the final-settlement deadline, and the conciliation procedure. The United States federal rules on severance agreements and release documentation do not apply here — a Georgian exit agreement is drafted under the Code, and it is the Code that sets the opening positions of the negotiation.
Two numbers anchor the bargaining: on scheduled dismissal with notice of at least 30 calendar days, the compensation is at least 1 month's remuneration; on short notice of at least 3 calendar days, at least 2 months' remuneration. These are floors and the starting point of the negotiation: a negotiated exit can go above these figures — below them, it cannot lawfully sit where those grounds apply.
The subject matter of the negotiation is broader than a single figure: the payment schedule, the accounting for unused leave, the handover period, the terms of a reference, and the confidentiality of the deal. The law does not regulate these details directly — the parties define them — yet every detail left unwritten tends to become the subject of a later court dispute instead of a settled negotiation. A good agreement is precisely one that answers these questions in advance.
Agreement as a Ground and as a Document
Article 47 names the written agreement of the parties as an independent ground of termination. A negotiated exit is therefore lawful only when it is executed in writing and rests precisely on this ground within the closed list. The prohibitions of the same article apply here too: an agreement resting on discrimination, a "voluntary" declaration produced by pressure, or a departure engineered during a protected period will collapse in court.
The content of the document must reflect two things: the ground of termination and the money — what amount, by when, and on which accounts. One technical deadline stands firm: under Article 44, the final settlement takes place no later than 7 calendar days from termination. The agreement must fit into that calendar week: every accrual — salary, unused leave, bonus — is either paid within that period or put on a clearly written payment schedule.
It is important to distinguish two routes: scheduled dismissal on the employer's initiative, where the compensation floor is set by law, and termination by mutual agreement, where the amount is a subject of free bargaining. Before signing, the employee must be clear on which ground the exit rests: leaving by one's own written declaration and leaving by mutual agreement sit in different legal regimes. A signature taken under pressure becomes, in court, a question of voluntariness, because the law recognizes a departure of one's own accord only on the basis of a written declaration.
The Conciliation Procedure and the Durability of the Deal
Exit negotiations are often conflictual, and the Code supplies its own procedure for that: the conciliation procedures of Article 62. One party sends the other a written notice that must state precisely the basis of the dispute and the party's demands; the other party must consider it and communicate its written decision within 10 calendar days of receipt. If no agreement is reached within 14 calendar days of receipt of the notice, either party may apply to the court.
The most valuable norm for the outcome of the negotiation is this: the parties adopt a written decision which becomes part of the existing employment contract. A compensation deal is thereby elevated to the level of the contract, and its breach is a breach of contract. Moreover, if a party evades the conciliation procedures for 14 calendar days from receipt of the notice, the burden of proving the facts of the dispute shifts to that party — the sanction for choosing evasion over negotiation. The parties may also agree to refer the dispute to arbitration; during the process, increasing the demand or changing the subject of the dispute is impermissible.
Frequently Asked Questions
Below we summarize the questions most often asked when negotiating compensation and exit.
What is the statutory minimum compensation?
On scheduled dismissal — at least 1 month's remuneration with notice of at least 30 calendar days, or at least 2 months' remuneration with notice of at least 3 calendar days.
How durable is a written settlement?
A written decision adopted in the conciliation procedure becomes part of the existing employment contract; breaching it carries the consequences of breaching the contract.
When must everything be paid?
The final settlement is made no later than 7 calendar days from termination, unless the contract or the law provides otherwise.
What happens if the other side evades negotiation?
Evading the conciliation procedures for 14 calendar days from receipt of the notice shifts the burden of proving the facts of the dispute onto the evading party.
How We Help on Legal.ge
On Legal.ge we conduct exit negotiations for employers and employees alike: we compute a fair compensation floor above the statutory minima, draft settlement texts that become part of the contract, and structure the payment schedule within lawful deadlines. Contact us — we will build your negotiating position with numbers and articles.