Do I need to cite a specific Article 47 ground?

Yes. Article 47 requires employer-initiated terminations to be based on one of the enumerated grounds. Failure to cite a specific ground — or citing one that doesn't apply — converts the termination into wrongful and exposes the employer to reinstatement orders and damages. Pick one ground and document why it applies.

How much severance must I pay?

Under Article 48, at least one month's gross wages, calculated as the employee's average gross monthly compensation over the preceding 3 months. The employment contract may specify more. Severance is owed for terminations under Article 47(d) (business reasons / redundancy) and 47(e) (long-term incapacity), but not for terminations under 47(h) (gross misconduct), 47(a) (mutual agreement, unless negotiated), or 47(b) (expiration of fixed-term contract).

Can I terminate without notice for misconduct?

Yes, under Article 47(h) — gross breach of duty. But you must be able to prove the misconduct in writing. Prior warnings, documented incidents, witness statements, and a clear chain of events are what makes a misconduct termination defensible. Without that, the court will likely reclassify the termination as wrongful.

What if the employee refuses to sign acknowledgement?

Acknowledgement is helpful but not required for the termination to be effective. If the employee refuses to sign, document the refusal in writing (note the date, witnesses present, that the employee was given the letter and declined to sign). The termination still takes effect on the date specified — refusal to sign does not delay it.

When must the final settlement be paid?

On or before the effective termination date. Article 32 requires wage-related payments to be timely; paying severance or accrued leave later than the termination date triggers late-payment damages and can be cited as evidence of wrongful termination procedure.

Should I have a lawyer review this before sending?

For straightforward Article 47(d) terminations with clear documentation, the template covers the essentials and lawyer review is optional. For misconduct terminations, terminations of senior executives, terminations during protected periods (pregnancy, parental leave, medical leave), or any case where you anticipate dispute, lawyer review before sending is strongly recommended.

FREE HR TEMPLATE · Letters

Termination letter template — Georgia (Labor Code Article 47 compliant)

Also known as: Georgia termination letter, Employee termination notice, Letter of termination, Notice of dismissal

A free, ready-to-customize employee termination letter template designed for compliance with Georgian Labor Code Article 47. Covers the specific ground for termination, the 30-day notice period, severance entitlement under Article 48 where applicable, final settlement of all owed amounts, and the formal handover process. Use this for any employer-initiated termination of an indefinite-term contract.

Termination is the highest-stakes moment in the employment lifecycle — and the moment with the most legal exposure if handled poorly. Under Georgian Labor Code Article 47, employer-initiated termination of an indefinite-term contract must cite one of the recognized grounds (business reasons / redundancy, gross misconduct, repeated minor violations, mutual agreement, expiration of fixed term, etc.) and follow procedural requirements: 30-day notice (except for misconduct), severance under Article 48 where applicable, and final settlement of all owed amounts. This template gives you a defensible written record.

HEADER

[Company Letterhead — company name, registration number, registered address]

[Date — YYYY-MM-DD]

[Employee Full Name]
[Employee ID Number]
[Employee Address]

Subject: Notice of termination of employment contract

OPENING

Dear [Employee First Name],

This letter constitutes formal written notice of the termination of your employment contract with [COMPANY LEGAL NAME] ("the Company"), entered into on [CONTRACT DATE — YYYY-MM-DD], in accordance with Article 47 of the Labor Code of Georgia.

1. GROUND FOR TERMINATION

[Select the applicable ground and fill in the specifics — delete the others before sending.]

Article 47(d) — Business reasons / redundancy:
The Company is undergoing [restructuring / operational changes / financial constraints / closure of business unit], necessitating the elimination of your position. This termination is for business reasons and is not related to your individual performance or conduct. [Provide a brief, specific business rationale — 2-3 sentences.]

Article 47(e) — Long-term incapacity:
You have been unable to perform the essential functions of your position due to [medical incapacity / other circumstance], as documented [reference: medical certification, dates of leave taken, etc.]. The Company has explored reasonable accommodation but is unable to continue the employment relationship.

Article 47(h) — Gross breach of duty:
Your conduct on [DATE(S)] — specifically [describe the conduct objectively] — constitutes a gross breach of your employment obligations. [Reference prior warnings if applicable: "You were warned in writing on [DATE] regarding similar conduct."] This conduct provides the Company with cause to terminate the employment contract effective immediately under Article 47(h).

Article 47(a) — Mutual agreement:
By mutual agreement between you and the Company, as confirmed in our discussion on [DATE], the employment contract will end on the date specified below. Both parties have agreed to the separation terms set out in this letter.

2. EFFECTIVE DATE OF TERMINATION

Effective date of termination: [YYYY-MM-DD]

[For Article 47(d), 47(e), 47(a) — non-misconduct grounds:]
In accordance with Article 47, you are entitled to 30 calendar days of advance notice. [Choose one:]
- You will work through the notice period; your last working day is the effective termination date above.
- The Company elects to pay in lieu of notice (PILON); your last working day is [DATE — earlier than effective termination date]. You will be paid your full compensation for the 30-day notice period as part of the final settlement.

[For Article 47(h) — gross misconduct only:]
Given the nature of the breach, this termination is effective immediately and the 30-day notice period does not apply.

3. SEVERANCE PAY (where applicable under Article 48)

[For Article 47(d) and 47(e) grounds, severance is owed:]
In accordance with Article 48 of the Labor Code, the Company will pay you severance compensation equal to one month's wages, calculated at [GROSS AMOUNT] [CURRENCY] based on your average gross monthly compensation over the preceding [3] months. This severance is paid in addition to any notice period compensation.

[For Article 47(h) and 47(a) — severance not statutorily required:]
This termination is for [gross misconduct under Article 47(h) — statutory severance not owed / mutual agreement under Article 47(a) — statutory severance not owed]. [Optional: any negotiated separation payment goes here, with terms documented.]

4. FINAL SETTLEMENT

On the effective termination date, you will receive a final settlement covering:

a) Unpaid wages: [AMOUNT] [CURRENCY] — for work performed through the last working day
b) Accrued but unused annual leave: [DAYS] working days × average daily wage = [AMOUNT] [CURRENCY]
c) Pay in lieu of notice (if applicable): [AMOUNT] [CURRENCY]
d) Severance under Article 48 (if applicable): [AMOUNT] [CURRENCY]
e) [Any contractual bonuses or commissions earned through the termination date]: [AMOUNT] [CURRENCY]
f) [Any other owed amounts — final expense reimbursements, etc.]

Total final settlement (gross): [TOTAL AMOUNT] [CURRENCY]

Statutory deductions (income tax 20%, employee pension 2% where applicable, etc.) will be applied to the gross amounts. Net payment will be made by bank transfer to your registered account on or before [DATE — should be on or before the effective termination date].

Final pay statement and wage calculation will be provided to you separately in accordance with Article 32.

5. RETURN OF COMPANY PROPERTY

On or before [DATE], please return the following Company property to [HR contact name / manager name]:

[ ] Laptop, charger, peripherals
[ ] Access card(s) and keys to Company premises
[ ] Mobile phone, SIM card (if Company-issued)
[ ] Company credit card
[ ] Company documents, files, samples
[ ] Other: [SPECIFY]

A property-return checklist will be completed and signed by both parties on the return date. Failure to return Company property may result in deduction from your final settlement to the extent permitted by law.

6. POST-EMPLOYMENT OBLIGATIONS

Notwithstanding the termination of your employment, the following obligations survive and remain in effect:

- Confidentiality / non-disclosure obligations under your employment contract and any separate NDA you have signed
- Intellectual property assignment provisions — all work product created during your employment remains the property of the Company
- [Any post-employment non-compete or non-solicitation clauses, where enforceable] — for [DURATION] from the effective termination date
- Return of Company property as set out in Section 5 above

7. UNEMPLOYMENT AND CONTINUITY

Upon termination, you may be eligible for unemployment benefits administered by [the Social Service Agency of Georgia]. Information about applying is available at [agency website].

[Optional, if Company is offering:]
The Company will provide [outplacement support / a reference letter / extended health insurance for X months / other separation benefits] as a courtesy. Details are set out in [attached separation agreement, if applicable].

8. ACKNOWLEDGEMENT

Please countersign this letter to acknowledge receipt. Your countersignature does not constitute a waiver of any legal rights or remedies you may have, and is solely for the purpose of confirming receipt of this notice.

If you wish to discuss this termination or any of the terms set out above, please contact [HR contact name] at [contact email / phone].

SIGNATURES

For [COMPANY LEGAL NAME]:

[Authorized signatory name]
[Title]

Signature: _________________
Date: [YYYY-MM-DD]


Acknowledged receipt by:

[Employee name]
[Employee ID number]

Signature: _________________
Date: [YYYY-MM-DD]

When to use this template

Employer-initiated termination of an indefinite-term contract on business grounds (Article 47(d))
Termination for long-term incapacity preventing work (Article 47(e))
Termination for cause — gross misconduct or repeated breaches after warning (Article 47(h))
Mutual-agreement termination — when formalizing the parties' shared decision in writing

What this template ensures

Specific Article 47 ground is cited (the most common omission in disputed terminations)
30-day notice period is honored or PILON is paid (Article 47, except for gross misconduct)
Severance under Article 48 is calculated and paid where applicable (1 month's wages minimum for grounds 47(d) and 47(e))
Final settlement includes unpaid wages, accrued leave compensation, and any contractual bonuses
Return of company property is documented
Date of termination is unambiguous

Before you send this letter

Document the business reason (for Article 47(d) terminations) in writing — keep internal records, not just the letter
For misconduct terminations: ensure prior warnings exist in writing (the labor inspectorate and courts will ask)
Calculate the exact severance amount using the average-wage formula — gross monthly compensation averaged over the preceding 3 months is the safest approach
Confirm all property the employee holds — laptop, access cards, keys, company credit card — and prepare the return checklist
Schedule the termination meeting for early in the week and early in the day — gives the employee time to react and respond before the weekend

Customization notes

Section 1 ground: pick ONE Article 47 ground and delete the other options before sending. Citing multiple grounds simultaneously is a common error that weakens the legal position — courts will scrutinize each ground and may find any of them wanting.
Section 1 business rationale: for 47(d) terminations, the rationale must be specific and documented. "We need to reduce costs" is too thin; "We are closing the [unit] effective [date] due to [specific reason], resulting in elimination of X positions including yours" is defensible.
Section 2 notice: 30 calendar days is the statutory minimum for non-misconduct grounds. The contract may specify longer; if so, honor the longer period. For misconduct (Article 47(h)), no notice is required but you must be able to prove the misconduct.
Section 3 severance: calculate from gross monthly wages averaged over the preceding 3 months. Including variable compensation (commissions, regular bonuses) in the average is the safe interpretation; excluding them is a common employer position that has been overturned in court.
Section 4 final settlement: pay everything on or before the effective termination date. Late payment triggers damages under Article 32 and can convert a clean termination into a wrongful one.
Section 6 post-employment: only enforce post-employment restrictions that are in the signed employment contract. Adding new restrictions in the termination letter (e.g., a new non-compete) is not enforceable.

Frequently asked questions

Do I need to cite a specific Article 47 ground?: Yes. Article 47 requires employer-initiated terminations to be based on one of the enumerated grounds. Failure to cite a specific ground — or citing one that doesn't apply — converts the termination into wrongful and exposes the employer to reinstatement orders and damages. Pick one ground and document why it applies.
How much severance must I pay?: Under Article 48, at least one month's gross wages, calculated as the employee's average gross monthly compensation over the preceding 3 months. The employment contract may specify more. Severance is owed for terminations under Article 47(d) (business reasons / redundancy) and 47(e) (long-term incapacity), but not for terminations under 47(h) (gross misconduct), 47(a) (mutual agreement, unless negotiated), or 47(b) (expiration of fixed-term contract).
Can I terminate without notice for misconduct?: Yes, under Article 47(h) — gross breach of duty. But you must be able to prove the misconduct in writing. Prior warnings, documented incidents, witness statements, and a clear chain of events are what makes a misconduct termination defensible. Without that, the court will likely reclassify the termination as wrongful.
What if the employee refuses to sign acknowledgement?: Acknowledgement is helpful but not required for the termination to be effective. If the employee refuses to sign, document the refusal in writing (note the date, witnesses present, that the employee was given the letter and declined to sign). The termination still takes effect on the date specified — refusal to sign does not delay it.
When must the final settlement be paid?: On or before the effective termination date. Article 32 requires wage-related payments to be timely; paying severance or accrued leave later than the termination date triggers late-payment damages and can be cited as evidence of wrongful termination procedure.
Should I have a lawyer review this before sending?: For straightforward Article 47(d) terminations with clear documentation, the template covers the essentials and lawyer review is optional. For misconduct terminations, terminations of senior executives, terminations during protected periods (pregnancy, parental leave, medical leave), or any case where you anticipate dispute, lawyer review before sending is strongly recommended.