For mission-driven Non-Governmental Organizations, the people who carry out the work are the most valuable asset. As employers, however, NGOs are subject to the full scope of the Labour Code of Georgia, and maintaining compliance is a matter of legal duty, ethical governance, and organizational sustainability. The non-profit operational model, which often involves a complex mix of grant-funded staff, dedicated volunteers, and external experts, presents unique challenges that require specialized legal counsel. Proactive and legally sound human resources management is essential to mitigate the risk of disputes, safeguard your reputation with donors, and ensure your team can focus on achieving its impactful goals.
One of the most critical legal risks an NGO faces is the misclassification of its personnel. The line between an employee, an independent consultant, and a volunteer must be managed with legal precision. Georgian law and tax authorities look beyond titles to the substance of the relationship, with "subordination" to the employer being a key determining factor. Incorrectly classifying an employee as a consultant or volunteer can expose an NGO to significant financial liabilities, including claims for back pay, benefits, and retroactive payment of income tax and pension contributions. We provide rigorous legal analysis to structure these relationships correctly, from drafting clear volunteer agreements that negate any employment expectation to creating robust service contracts that solidify independent contractor status.
A legally compliant employment contract is the cornerstone of your relationship with your staff and your first line of defense in a dispute. Under the Labour Code of Georgia, all written employment agreements must contain specific mandatory elements, including the start date, job description, workplace, remuneration details, working hours, and leave entitlements. For NGOs that rely on project-based hiring, structuring fixed-term contracts requires particular care; the contract must explicitly state the objective justification for its fixed duration, such as alignment with a specific grant period. Our legal services include drafting and reviewing bespoke contracts that are not only fully compliant but also strategically aligned with your operational and grant-related needs.
Beyond individual contracts, effective HR management requires a framework of clear internal policies. We assist in the development and implementation of crucial documents such as the Internal Labour Regulations (შრომის შინაგანაწესი), which govern day-to-day workplace conduct, disciplinary measures, and operational procedures. These internal rules, along with clear policies on leave, performance management, and ethical conduct, create a transparent and fair working environment. Such documentation is vital for consistent management and provides an essential evidentiary basis should a dispute or legal challenge arise, demonstrating the organization's commitment to lawful and orderly employment practices.
Navigating the termination of an employment relationship is a legally intensive process that demands strict adherence to the Labour Code. Whether a termination is due to the conclusion of a grant, organizational restructuring, or performance issues, it must be based on legally permissible grounds and executed following precise procedural steps, including notice periods and the calculation of severance pay. Our team at Legal Sandbox Georgia provides strategic, forward-looking counsel, helping you manage performance and disciplinary issues with proper documentation long before a termination is considered. We guide you through every step of the separation process, ensuring it is handled with fairness, dignity, and minimal legal risk to your organization.
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