Protected but Unemployed?
28 March, 2013
Protected but  Unemployed?
The underway draft labor code lacks clarification that may lead to increased unemployment rate, shadow contracts and deteriorated investment climate, Association of Young Economist of Georgia (AYEG) warns and hopes the law-makers will streamline the defects.
If currently valid labor code is notorious for its super-libertarian approach, more focused on employers than on employee’s interests, the underway draft labor code, which is expected to become a law by end of this spring, lacks transparent and detailed paragraphs that lays ground
to double interpretation and destroys the interest balance between employers and employees. The state comes to protect interest of employees who have to agree on bondage employment terms and to prevent discrimination of labor force new draft code enhances social responsibilities of employers but does not provide with detailed description of these obligations that puts out hidden bombs. For example employers should insure better working conditions the draft says but says nothing of how exactly the conditions should be improved that may trigger a dispute between the employer and employee eventually.
Employers have to pay diligently each month for both regular and temporary workers including students on practice. Meantime no temporary contract can be of less than three-month-period-long. Giorgi Tsimintia, Chairperson of Board of AYEG, finds this obligation losing for both employers and potential labor force. He fears that obligation on three-month-long temporary contracts may really puzzle an employer if he/she needs implementation of only 10-days work for instance. The way-out can be a shadow contract or saying “no” to a person for a temporary job. Requirement on monthly payment seems also unreasonable.
“Why should an employer pay each month for a three-month temporary job when he/she can agree with the employee to pay after the work is completed. Maybe after three months the employer finds the job is done far below the par what should it pay for?” Tsimintia wonders. Obligation to pay for temporarily hired people deprives undergraduate students and inexperienced people of opportunities to improve qualification by temporary work at enterprises. Some Georgian banks for example largely used the practice of suggesting temporary training to students sometimes with job opportunity. Some paid for this, some did not. But the targeted people were interested in it as they had an opportunity to improve skills and CV that increased their chances to find a job. Now business will give up this practice. This is a brief part of the rap-sheet of the new labor code draft that all in all can really insure better protection of employees but on the other hand will lead to reduced employment rate and shadow deals and the potential employee will be a victim in fact.
“In most cases paragraphs [in draft labor code] are so superficial and unclearly elaborating the required terms, criteria and obligations that in practice this kind of non-transparency will unreasonably tighten burden on employers. The latter may get bored and practice informal contracts that will trigger income tax-evasion or will reduce employment,” he said. “As a result employees may be better protected but people at large will be less employed. Therefore it is important to law to provide with full details and description of obligations they impose on employers and employees to escape disputes.”
Sophisticated labor code and complicated business procedures may scare investors off. “Labor law is not the decisive but one of major factors to investors when they evaluate the country’s investment potential and unclear obligations may scare some people,” Tsimintia said adding that the underway draft needs harder work to become perfect. He thinks the reason the project is superficial is that authors worked it out in a prompted manner and without inclusion experts and interested sides. The working on the project started in this past January. In February government approved the paper-work and scheduled it to be approved during the parliament’s spring session. Now it’s up to the legislative body to say a final word and make the labor law flawless.
Print
Other Stories
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
PHOTO OF THE DAY

Exchange Rates
GEL Exchange Rate
Convertor
19.01.2019
20.01.2019
USD
1
USD
2.6629
2.6629
EUR
1
EUR
3.0368
3.0368
GBP
1
GBP
3.4463
3.4463
RUB
100
RUB
4.0103
4.0103
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6629
EUR
1
EUR
3.0368
GBP
1
GBP
3.4463
RUB
100
RUB
4.0103
January 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31