Labor Contract

Labor Contract

Labor contract is an agreement between an employer and an employee, pursuant to which an employee undertakes an obligation to perform work, while an employer is obligated to pay the agreed compensation.

Labor contract may be concluded either verbally or in writing. By its legal nature, an employer's order on hiring of an employee shall equal to a labor contract.

Labor contract may be concluded for a defined, undefined, or a specific term for carrying out the work. When entering into a labor contract for the defined term, an employer is not restricted by an obligation to set minimum and maximum terms, s/he can hire an employee for the term acceptable for himself/herself. In case of a labor contract for an undefined term, the parties do not indicate the term for the period of employment. A labor contract may be concluded for the period of carrying out certain works, i.e. it may relate to the performance of concrete job and the labor relations between the parties may terminate immediately upon the fulfillment of this work.

Written labor contract may be concluded in several languages. In such case the contract must indicate which language prevails should there be any discrepancies between the provisions of contracts.

Labor contract may regulate the following issues:

a) Work to be performed;

b) Remuneration for work;

c) Rights and obligations of an employer and an employee;

d) Term of validity of a labor contract;

e) Procedure and terms for granting the paid leave and the leave without pay;

f) Procedure for business trips and the payment terms;

g) Procedure for performing overtime work and the payment terms; etc.

Terms foreseen under a labor contract, apart from the work to be performed, remuneration of work, and the term of validity of a contract, may be defined under the approved by-laws of an organization.

Note: Issues related to a labor contract executed between the administration of a non-entrepreneurial (non-commercial) legal entity and an employee are regulated by the Labor Code of Georgia.

Sample

Labor Contract

/City/ ------––––––––––––––– 2009

On one hand, –––––––––––––––––– (name, legal address), represented by the Director (person authorized to represent employer) –––––––––––––– (hereinafter – the Employer) and on the other hand, ______(hereinafter the Employee), residing at ______, ID# ______, personal # ______, issued ______by ______in /year/,

Based on the expression of free will enter into the present labor contract with the following terms:

Article 1. Subject of Contract

The Employer shall hire the Employee in the organization on the position of ------, while the Employee shall be obligated to perform the work undertaken under the present contract in accordance with the volume and procedure, which is defined by the present contract, supplementary contracts (in case such exist), by-laws of the organization and the job description (in case such exists).

Article 2. Work (Functions) to be Performed by the Employee

2.1. The Employee shall be obligated to personally perform the following work:––––––––––––––––––––––––––––––––––––––.

2.2. The list of works (functions) to be performed by the Employee shall be defined in the supplemental contracts (in case such exist), which represent an integral part of the present contract, as well as the job description (in case such exists).

Article 3. Rights and Obligations of the Parties

3.1. While hired on the position, the Employee shall be entitled to:

a) Demand from the Employer the observance of the terms of this contract and the effective legislation;

b) Demand from the Employer safe work conditions and their observance;

c) Use vacation, rest, break, and holidays pursuant to the present contract, by-laws, and the effective legislation;

d) Refuse to perform work, assignment or instruction, which is against the law or poses clear and essential threat to his/her or a third person's life, health and property.

3.2. While hired on the position, the Employee shall be obligated to:

a) Perform his/her functions in good faith, timely, and in a high professional manner;

b) Firmly observe the organization's charter and other organizational acts (in case such exist);

c) Firmly observe the organization's by-laws (in case such exists), which represent an integral part of the present contract;

d) Firmly observe the job description (in case such exists);

e) Not to disclose the organization's confidential information that s/he got familiar with while discharging the official work.

3.3. The Employer shall be entitled to:

a) Demand from the Employee due and diligent discharge of undertaken obligations;

b) Introduce the organization's by-laws in accordance with the procedure established by the effective legislation of Georgia;

c) Demand from the Employee the observance of the terms of the present contract and by-laws;

d) Pursuant to the legislation and by-laws, demand from the Employee the performance of overtime work for respective remuneration;

e) Exercise other rights granted under the by-laws and effective legislation.

3.4. The Employer shall be obligated to:

a) Observe the terms of the present contract, by-laws, and the effective legislation;

b) Inform the Employee about by-laws;

c) Within the scope of its capacity, create normal work conditions for the Employee;

d) Create safe work conditions for the Employee;

e) Timely and fully pay remuneration for work to the Employee.

Article 4. Remuneration of Work (Salary)

4.1. For performed work the Employee shall be given remuneration (salary), which shall equal –––––––– GEL.

4.2. Remuneration (salary) shall be paid on a monthly basis, until /day/ ––––– of each following month.

4.3. Remuneration (salary) shall be paid in/through ––––––––––– (cash/wire transfer).

4.4. The Employer shall withhold the Employee's income tax in accordance with the procedure established by the tax legislation.

Article 5. Working Hours, Break, Vacation

5.1. The Employee's basic working time shall include ––– hour working day, and ––– day working week. Rest days shall be ––––––––––––––.

5.2. The Employee shall be entitled to use 1-hour break during one working day.

5.3. The Employee shall be entitled not to work on holidays established by the legislation of Georgia.

5.4. The Employee shall be entitled to use the paid vacation in the amount of –––– (business/calendar) days per year.

5.5. The Employee shall be entitled to use the unpaid vacation in the amount of –––– (business/calendar) days per year.

Article 6. Responsibility of the Parties

The parties shall be liable towards each other for damages arising from non-fulfillment of obligations, unless such damages were caused by the force-majeure circumstances.

Article 7. Suspension and Termination of the Labor Contract

The validity of the present labor contract shall suspend and terminate in accordance with the grounds and procedure established by effective legislation.

Article 8. Resolution of Disputes

Disputes between the parties shall be resolved in accordance with the procedure established by effective legislation.

Article 9. Term of Validity of Contract

The contract shall be concluded for ---- year/s, from ------200-- till ------200--.

Article 10. Amendments and Supplements

Substantial terms of the contract may be amended based on the written agreement of both parties.

Article 11. Final Provisions

11.1. Issues, which are not defined under the present contract shall be regulated pursuant to the effective legislation and the organization's by-laws (in case such exists).

11.2. The contract shall be drawn up in two copies having equal legal force and shall be deposited with the parties.

Signatures of the Parties

EmployerEmployee

––––––––––––––––––––––––––––––––––