Georgia: Law of 1991 on Employment (annulled)

The present Law determines the policy of employment of the population on the Republic of Georgia, the economic, social organizational and fundamentals of the social protection of the unemployed.

The Law extends to all the citizens of the republic.

Other things being equal in getting a job, citizens of the Republic of Georgia will have an advantage.

Chapter. I. General Provisions

Article 1.Basic Principles of the State Policy in the Sphere of Employment

The state policy in the field of employment shall be based on the following principles:

a)the ensuring of equal opportunities for all the citizens of the Republic of Georgia regardless of the race, nationality, sex, attitude to religion, political convictions and the property status in realizing the right to labour;

b)support and encouragement of labour initiative of a citizen;

c)assistance to employment of a citizen and maximum bringing down of unemployment;

d)ensuring of social protection of an unemployed;

e)coordination of measures conducted in the sphere of employment and in order directions of the social and economic policy (social security, increase in and distribution of incomes, prevention of inflation, etc.);

f)active participation of trade unions and associations of entrepreneurs (unions) with bodies of state administration in the development, realization and control of measures carried out in the sphere of employment;

g)international cooperation in the settlement of problems of employment.

Article 2.Forms of Employment

A citizen shall have an exclusive right to be in charge of his abilities for labour and be engaged in any activity not prohibited under he legislation of the Republic of Georgia.

Employment has the following two forms:

a)the activities of a citizen securing the satisfaction of personal and public needs and, as a rule, paid by wages and/or salaries or other forms of income;

b)the activities of a citizen not connected with the performance of the paid work (upbringing of children, house-keeping, full-time studies, public work).

The unemployment of a citizen shall not serve as grounds for taking administrative, legal and other action against him.

The State shall facilitate the creations for freely realizing the right of a citizen to labour.

The following shall relate to citizens connected with a paid job:

a)an employed citizen including the one working for remuneration during a shortened working day (week) as well as working under contract bur being temporarily idle because of illness, leave, strike, temporary stoppage of production;

b)a citizen engaged in entrepreneurial activities, individual labour ad creative activity, members of economic partnerships and companies, persons engaged in farm work and members of their families engaged in production;

c)a citizen chosen, appointed or approved for a paid position;

d)a citizen serving in the internal forces – the National Guard, state security bodies and law-enforcement bodies;

e)a citizen of other country being temporarily in the republic of Georgia, engaged with the located on its territory enterprises, agencies and organizations regardless of the form of ownership unless is activities are connected with the functioning of an embassy and representation (mission) of a foreign state;

f)a citizen of the Republic of Georgia working abroad.

Article 3.An Unemployed

An able-bodies citizen of the employable age owing to circumstances beyond his control has no job and respective earnings (earned income) is registered at the State Labour Exchange and service does not offer him a proper job shall be deemed as an employed.

The procedure and terms of registration of an unemployed shall be stipulated by the prevent Law and corresponding Statute approved by the Government of the republic.

A citizen who according to the established procedure is not entitled to the status of an unemployed, shall have the right to be registered by the State Labour Exchange as a person looking for a job.

Article 4.Proper Work

For a citizen discharged from work and deprived of earnings (labour income) and registered at the State Labour Exchange a proper will be the work corresponding to his professional training, age, sex, length of service, the state of health and being convenient in respect of living conditions and the availability of transportation.

Should the State Employment Promotion Service fail to provide a citizen with proper work within the first six months, the proper work may be deemed the one requiring the change of profession (speciality) taking into account the age, sex, the state of health, length of service and other requirements established by the labour legislation.

For persons seeking employment for the first time and having no profession (speciality) and paid job (including a temporary one) with regard to age, sex, the state of health of a citizen and other requirements established under the labour legislation or a job asking for his professional pre-training may be deemed as proper.

Article 5.State Guarantees of Protection of the Right to Labour

The State shall guarantee to an unemployed:

a)the right to make use of free professional training, re-training as well as professional advice;

b)a free choice of one's occupation or work;

c)free choice of one's occupation or work;

d)protection from any forms of discrimination in getting profession and work, professional training, employment and selection of labour conditions;

e)provision of state educational establishments' graduated with work in accordance with the applications of enterprises, institutions and organizations;

f)compensation of expenses related to the assignment to work at a new lace of residence under authorization of the State Labour Exchange;

g)possibility of participating in temporary work.

State bodies shall provide for regular publication of statistical data and information materials on the depend and supply of labour force, the possibilities of employment, professional training and re-training, the social, labour rehabilitation and other matters of the employment sphere.

Note: the notion "re-training" implies the skill improvement as well.

Article 6.Additional Guarantees of Employment for Individual Groups of the Population

The State shall provide additional guarantees of employment to a citizen having low competitiveness (a young disabled person, a single and the one having many children, the one upbringing a child under 14 years of age or a disabled child, a citizen out of employment for a long period of time, a person relieved from the establishment being in charge of serving a sentence or compulsory treatment) on the labour market who has difficulties in getting a job and needs to be socially protected. For the said category of citizens the State shall create special additional jobs, specialized enterprises including the enterprises for disabled people, shall carry out special training programmes and realize other measures.

Local administration bodies shall established at their own expense, on the recommendation of the state employment promotion bodies trough the provision of tax privileges and other sources for enterprises and institutions a minimum required number of special jobs to employ the above-mentioned groups of citizens.

Article 7.The Legislation of Employment

The relations in the sphere of employment on the territory of the Republic of Georgia shall be regulated under the present Law, the labour legislation of the Republic of Georgia and other legislative acts of the republic.

The additional conditions and guarantees of social protection of the employed may be provided for by the employment legislation of autonomous republics with regard for the republic's peculiarities unless they contradict the legislation of the Republic of Georgia.

Provided an international treaty or agreement of the Republic of Georgia sets rules other than those specified in the legislation of the Republic of Georgia, the provisions of the international treaty shall prevail.

Chapter. II.Right of a Citizen to the Employment Security

Article 8.The Right to Employment

A citizen of the Republic of Georgia shall have the right to a free choice of place of work through direct application to an enterprise, institution and organization (regardless of the form of ownership) or through the State Labour Exchange.

A decision on the employment shall be taken on the basis of mutual agreement between the administration of the enterprise, institution, organization and the citizen with compulsory notification of the State Labour Exchange.

The procedure and terms of labour agreements (contracts) shall be regulated under the labour legislation of the Republic of Georgia.

Article 9.The Right of Citizen to Labour Activities Abroad

A citizen of the Republic of Georgia shall have the right to labour activities during his temporary residence abroad.

The procedure for the protection of the rights and interests of the citizens as well as the terms of providing intermediary aid to him shall be specified by the legislation of the Republic of Georgia and the corresponding state as well as the agreements concluded between the Republic of Georgia and other states.

Article 10.Social Protection of an Unemployed

A citizen shall have the right to social protection from unemployment. A person considered as unemployed under the established procedure shall be entitled to receive the unemployment benefit.

Article 11.The Right to Appeal Against Actions of the State Employment Service Workers

A citizen shall have the right to appeal against of the state employment service in the Court under the procedure established by the legislation of the Republic of Georgia.

Chapter III.State Control and Employment Institutions

Article 12.The State Control of Employment

The employment of the population shall be controlled by the Ministry of Labour, Social Protection and Demography of the Republic of the Georgia. With the purpose of practical implementation of a single employment policy on the territory of the Republic of Georgia and providing for corresponding guarantees to citizens, a State Employment Service in the form of a system of a single State Employment Promotion Fund, the State Labour Exchange, professional training and re-training of the unemployed shall be set up by the Government of the Republic of Georgia at the Ministry of Labour, Social Protection and Demography. It shall engage in the development and implementation of relevant programmes; with this aim shall participate in the conduct of financial, credit, investment and taxation policy, the realization of measures for rational positioning of the productive forces, increasing the labour mobility of citizens and introducing a flexible labour mode.

Article 13.The State Labour Exchange

With a view to facilitating employment of the unemployed and providing for their social guarantees on the territory of the Republic of Georgia a State Labour Exchange shall be set up.

The activities of the State Labour Exchange at the interrepublican regional level shall be carried out through regional labour exchanges, while of cities and districts – through local representatives of the regional exchanges.

Status of the State Labour Exchange shall be ratified by the Government of the Republic of Georgia. Citizens shall be serviced free of charge.

A State Employment Inspection shall be established within the framework of the State Labour Exchange to supervise the observation of the citizens' rights to employment at enterprises, institutions and organizations regardless of the form of ownership. The activities of the State Employment Inspection shall be coordinated by the State Labour Inspection at the Ministry of Labour, Social Protection and Demography.

The activities of commercial exchanges, agencies and other institutions in the republic engaged in rendering paid services in the employment, training and re-training of citizens (including beyond the republic) shall be allowed under licences granted solely by the Ministry of Labour, social Protection and Demography.

Article 14.The Participation of Enterprises, Institutions and Organizations in the Implementation of the State Employment Policy

The enterprises, institutions and organizations operating throughout the Republic of Georgia regardless of the form of ownership and economic activities shall promote the realization of the state employment policy for which they shall:

a)observe terms of an agreement (contract) regulating labour relations in accordance with the labour legislation of the Republic of Georgia;

b)create proper conditions for professional training and re-training of the employed;

c)remit regularly to the united state Employment Promotion Fund relevant resources under the established procedure and the rate determined by the Government of the republic in line with the approved republican budget;

d)provide in due time the State Labour Exchange with information concerning vacant jobs (vacancies) and expected dismissal of workers with the indication of their number, trade and other characteristics as well as the time of dismissals with the purpose of timely conduct of measures to ease negative consequences of the process;

e)create specialized jobs for disabled people, pensioners, mothers having many children and single mothers as well as other groups of the socially unprotected citizens. Should this requirement be non-fulfilled, they shall remit additionally to the united State Employment Promotion Fund the resources intended for the social protection of this category of citizens under the established procedure.

The liquidation of jobs of the above category of citizens shall take place in agreement with the Ministry of Labour, Social Protection and Demography of the Republic of Georgia and local administration bodies.

Preferential payments to the United State Employment Promotion Fund may be established for Enterprises, institutions and organizations in the case of employment of citizens having low competitiveness on the labour market and being in need of special social protection or creation for them and the unemployed new jobs. In such cases the rate of benefits shall be specified by the Ministry of Labour, Social Protection and Demography of the Republic of Georgia agreement with local administration bodies.

In the case of mass dismissal of workers the enterprises, institutions, organizations shall deposit to the United State Employment Promotion Fund additional fees under the established procedure.

Article 15.The United State Employment Promotion Fund

With the purpose of promoting employment a United State Employment Promotion Fund shall be formed as an independent financial system. It shall be used to finance the measures for the fulfilment of the policy of employment and activities of the State Employment Service.

The United State Employment Promotion fund shall be formed at the expense of:

a)mandatory deductions of enterprises, institutions and organizations (regardless of the form of ownership and economic activities);

b)voluntary contributions of enterprises, institutions and organizations and citizens of Georgia and foreign states, other receipts.

In the case of insufficiency of resources for the United State Employment Promotion Fund additional funds from the republican budget shall be allocated.

Directions, the procedure and conditions of the application of resources of the united State Employment Promotion Fund shall be defined by the Statute approved by the Government of he Republic of Georgia.

With the purpose of creating new jobs for the unemployed and attracting additional resources the united State Employment Promotion Fund shall engaged in commercial activities which shall be exempt from income tax as well as the state and customs duties.

Article 16.Professional Training and Re-training of an Unemployed

The professional training and re-training of an unemployed shall take place if:

a)the State Labour Exchange fails to select a proper job for a citizen because he has no necessary professional skills;

b)the State Labour Exchange fails to offer an unemployed a job corresponding his professional experience and he has to change his profession;

c)an unemployed has lost his ability for performing work of his former profession.

The professional training and re-training of a unemployed shall be carried out on the base of centres for professional training and re-training operating within the system of the State Employment Service as well as under contract in other training establishment at the expense of the united State Employment Promotion Fund provided for these purposes.

Article 17.Arrangement of Temporary Work

Local administration bodies on proposal of and with the participation of the State Labour Exchange shall arrange the performance of temporary work at enterprises and organizations of local municipal property as well as under contracts at other enterprises, institutions and organizations.

The financing of temporary work shall be conducted on account of the local budget and the attraction of resources of the united State Employment Promotion fund.

The procedure for the arrangement and terms of the temporary work performance shall be defined by the relevant Statute worked out by the Ministry of Labour, Social Protection and Demography of the Republic of Georgia.

Chapter IV.Guarantees of Social Protection of the Unemployed

Article 18.Guarantees of Material Support

The State shall provide an unemployed with the following guarantees:

a)the employment benefit;

b)the grant for the period of professional training and re-training and the preservation of the general and continuos service length during this period;

c)material support to an unemployed and to members of his family with regard of old people and minors being at his expense.

Article 19.Guarantees of Material Support to Dismissed Workers

A worker dismissed shall be given a benefit during one year from the date of the dismissal under the following procedure:

·within three moths from the date of the dismissal at the rate of an average pay at the last place of the basic work under the procedure established by the dismissing organization;

·the benefit shall be further given by the State Labour Exchange on account of the united State Employment Promotion Fund;

·within the fourth-sixth month a the rate of 70 percents of his average pay but not more than twice the minimum pay established in the republic;

·within the tenth-twelfth month at the rate of the established in the republic minimum pay.

The rate of the benefit shall redefined in accordance with the date of registration at the exchange.

For an unemployed having children and other family members at his expense, unless they get the benefit under the effective legislation, the rate of the benefit shall be defined at 25 percent of the sum of the established benefit for each dependant but not more than the rate of the average pay at the last place of work.

A citizen released from the place of serving sentence or the compulsory treatment under the Court's ruling and registered as an unemployed looking for an employment shall be granted the unemployment benefit at the rate of not less than 75 percent of the established minimum pay.

A citizen who has graduated from secondary school, secondary specialized or higher educational establishment or undergone compulsory service in interior forces – the National Guard, the within the period of six months was registered at the State Labour Exchange as an unemployed shall be given the benefit at the rate of the established in the republic minimum pay during one year from the date of registration.

An unemployed who has consented to work at the determined by the Ministry of Labour, social Protection and Demography lacking labour force shall be given an additional extraordinary grant at the established in the republic rate being determined by the Ministry of Labour, Social Protection and Demography of the Republic of Georgia.

Article 20.The Rate of Grant Paid Within the Period of Professional Training and Re-training

An unemployed having children and other members of the family at his expense within the period of professional training and re-training shall be given a grant at the rate of 80 percent of the average pay at the former place of work but not more than twice the rate of the established in the republic minimum pay, while the one having no dependants – at the rate of 50 percent of his average pay but not less than the established in the republic minimum pay.

A citizen seeking employment for the first time as well as a citizen being unemployed for a long time (more than one year) and needing professional training and re-training shall be given for a period of training a grant at the rate of the established in the republic minimum pay.

Article 21.Dates and Terms of the Unemployment Benefit Payment

A benefit shall be paid to an unemployed every month beginning from the date of registration at the State Labour Exchange. On the period of receiving of the unemployment benefit an unemployed should observe the requirements provided for by the procedure and terms of the benefit payment.

In the period of receiving the unemployment benefits the general and continuous length of service shall be preserved.

The rate of the payable unemployment benefit shall be subject to indexation under the established procedure.

Article 22.The Payment of the Preferential Unemployment Pension

An unemployed who according to his general length of service is entitled to the grant of pension (including on preferential terms) may received his pension two years prior to the established pensionable age.

Article 23.The Suspension and Termination of the Unemployment Benefit Payment

The payment of the unemployment benefit may be suspensed or terminated in the following cases:

a)the refusal of an unemployed from two offers of proper work for invalid reason;

b)the refusal of an unemployed from two offers of proper work upon completion of professional training and re-training under assignment of the State Labour Exchange;

c)the temporary employment of an unemployed in the period of receiving the unemployment benefit without notifying the State Labour Exchange;

d)the violation by an unemployed of the requirements of the first par of Article 21 of this Law;

e)an attempt on the part of an unemployed to receive or receiving the employment benefit by fraud;

f)the dismissal of an unemployed from the previous place of work for violating labour discipline or by his own wish for invalid reason.

The procedure for the suspension termination of the unemployment benefit payment shall be determined by the Status approved Government of the Republic of Georgia.

Article 24.Material Aid

Should an unemployed lost his right to the reception of the unemployment benefit and he continuos to be registered at the State Labour Exchange as an unemployed looking for a job, he and members of his family shall be rendered material and other aid. The rate, the procedure for and the terms of providing the material aid shall be determined by the Government of the Republic of Georgia.

Chapter V.Control Over the Implementation of the Employment Legislation and the Responsibility for its Violation

Article 25.The Control-Exercising Bodies

The control over the implementation of the legislation of the Republic of Georgia on the population employment shall be effected by the Ministry of Labour, Social Protection and Demography, local authority and administration bodies authorized under law, state and public bodies.

Article 26.The Responsibility for Violating the Employment Legislation

The disciplinary, material, administrative and legal responsibility for the violation of the employment legislation shall be established by the legislation of the Republic of Georgia.

 

President of the Republic of Georgia
Z. Gamsakhurdia

Tbilisi, 25 July 1991.

 

 

Decree
Of the Supreme Council of the Republic of Georgia
on the Introduction of the Law of the Republic of Georgia
"On Employment"

The Supreme Council of the Republic of Georgia has resolved:

1.The Law of the Republic of Georgia "On Employment" shall be effected upon its publication, Chapter 4 of this Law "Guarantees of Social Protection of the Unemployed" (Article 18-24), from 1 September 1991.

2.Upon entry of the Law into force the acting in the Republic of Georgia legislative acts shall be valid unless they are contrary to the Law of the Republic of Georgia "On Employment".

3.To established that according to the norms ratified by the Government of the Republic of Georgia enterprises, institutions, organizations and cooperatives located on the territory of the Republic of Georgia regardless of their form of ownership and economic activities shall effect monthly compulsory deductions to the United State Employment Promotion Fund. These deductions shall, as a rule, be included in the cost of products (works, services), while for the budgetary organizations and enterprises – at the expense of additional funds allocated from the budget.

Since 1 July 1991 the norms of deductions to the United State Employment Promotion Fund have constituted 3 percent of the labour remuneration funds.

For the institution of the statutory activities until the necessary funds have been accumulated 20 million roubles shall be remitted to the United State Employment Promotion fund from the budget of the republic from the date opening of a corresponding bank account: The following requirements for the budgetary funds shall be defined in accordance with the actual requirements of the fund.

With a view to the above, the budgetary organizations and establishments shall be exempted from the mandatory deductions.

4.To establish that for all enterprises, organizations and establishments the basic pay for the calculation of the unemployment benefit shall be determined proceeding from the average pay with the exception of all kinds of bonuses and extraordinary allowances.

5.The Government of the Republic of Georgia shall:

·provide for the bringing of relevant sub-legal acts in conformity with the Law of the Republic of Georgia "On Employment";

·until the end of the year provide for the revision and alteration of legislative acts that are contrary to the present Law;

·in a month's period adopt immediate legislative acts on the state employment service, including:

a)the Statute of the United State Employment Promotion Fund;

b)the Statue of the State Employment Inspection;

c)the Statue of Withdrawal of Compulsory Special-Purpose Deductions to the United State Employment Promotion Fund;

d)the Statue of the State Labour Exchange;

e)the Statue of the Procedure for and Terms of Providing Assistance to the Unemployed;

f) the Statute of the Arrangement of Temporary Work;

g)the Statute of Granting Licences for Paid Servicing of Citizens for their Employment, Training and Re-training;

·with the purpose of entry of the Republic of Georgia into the International Labour Organization conduct negotiations with the International Labour Organization and foreign countries;

·render effective assistance to the State Employment Service in equipping with proper computer and automatic system for which purpose to allocate to the Ministry of Labour, Social Protection and Demography funds under a special-purpose grant at the rate of 5 million roubles.

 

Chairman of the Supreme Council of the Republic of Georgia

Akaki Asatiani

Tbilisi, 25 July 1991.