Georgia's Labor Code Severance Math: A Guide for International Employers

Georgia (the country, not the US state) has a permissive labour law regime by EU standards but a strict one on severance. The relevant rules sit in Articles 47 and 48 of the Georgian Labor Code and they do not bend to international precedent — Georgian severance is governed entirely by Georgian law regardless of the employer's home country.

What triggers a severance payment

Severance is owed when the employer terminates an indefinite-term employment contract on certain grounds — primarily economic, technological, or organisational reasons (Article 47.1(a)) or long-term incapacity for work. Severance is not owed when:

• The employee resigns
• The contract is terminated for cause (gross misconduct under Article 47.1(d))
• A fixed-term contract expires
• The parties mutually agree to terminate
• The probationary period ends without conversion

The probationary period itself is capped at 6 months and must be in writing — see the probationary period explainer.

The actual amounts

Article 48 sets the minimum severance:

1. 1 month's salary if the employee is given at least 30 calendar days' written notice
2. 2 months' salary if less than 30 days' notice is given

That is the statutory floor. Higher amounts can be agreed in the individual employment contract or a collective agreement — and where the employer is paying more, those amounts are enforceable. "Salary" for severance calculation purposes generally means the average monthly remuneration over the last three months before termination, including consistent variable pay components.

The HourSquare Georgia severance calculator implements the Article 48 math with both notice scenarios. For the underlying termination procedure (notice format, content requirements, written acknowledgement), see the termination procedure explainer.

Where international employers commonly slip

Three patterns:

1. Treating Georgian severance like UK statutory redundancy pay. The UK formula scales with age and length of service. Georgian severance does not — it is a flat 1 or 2 months regardless of tenure.
2. Underpaying because of variable comp confusion. Commission and consistent bonus payments count in the severance base. Ignoring them produces a short calculation that the labour inspectorate or a court will correct on appeal.
3. Skipping severance after "constructive dismissal" scenarios. Where the employer changes working conditions so substantially that the employee leaves, the labour court can characterise it as an employer-initiated termination and order severance. See the constructive dismissal glossary entry.

For the official Georgian-language text, the matsne.gov.ge labour code page is the canonical source. For the structural overview of all of Georgia's labour law, start with the Georgian Labor Code overview.