Key Highlights
Georgia is now headed towards a major change in its labour policy and immigration policy with the forthcoming introduction of a mandatory work permit regime for the majority of foreign countries. The new rule, scheduled to take effect on March 1, 2026, will mark a departure from the current model in the country, where foreign residents have not required a special permit to work and have been allowed to do so instead. The shift is planned to introduce more organisation and control into the country's labour market, and the government wishes to better control and monitor foreign involvement. To international labourers and the business enterprises which hire them, getting familiar with the dynamics of this new regime will play a pivotal role in their successful transition and subsequent compliance.
The new policy will become a step towards a more formalised and regulated system, which makes Georgia similar to many other countries that need a distinct separation between legal presence (residence) and the right to work. This will impact the wide range of the foreign workforce, including salaried employees and self-employed people, requiring effective planning by individuals and organisations in avoiding penalties and operating correctly.
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The Mandate: What the New Law Entails?
As of March 1, 2026, foreigners cannot obtain employment in Georgia relying on their legal residence; however, they can come to Georgia and reside there without issues. They will instead be obliged to secure a certain working approval before starting any employment, including self-employment. The introduction of this new requirement constitutes a paradigm shift to a long-held practice that has enabled some form of flexibility to the expatriates who have lived and worked in the country. This policy has the motivation that the government intends to have a better perception of the foreign workforce, achieve a balance of the labour market, and have all employment documented and regulated.
The change puts most of the burden of application of the permit on the shoulders of the employers. Companies that employ foreigners will be required to complete the required documents in the name of their workers. This necessitates companies having in place new HR and legal procedures to meet the stipulations.
Latest Application Process and Timeline for Compliance
The new system will also present the formalisation of the issuance of work permits process, an aspect which is a first-time establishment of administration procedures with both employers and employees.
Application Journey
The entry of the employer in the process starts by making an application to the concerned government agency. This application will contain information regarding the foreign worker, the character of his or her work, and the conditions of working with the employee. The processing of such applications by the government will take a maximum of 30 calendar days. This timetable is a vital factor that companies should consider since it implies that before a new recruit can be formally engaged to work in a foreign firm, a lead time would be required. The information that should be documented to apply will probably be evidence of employment, the employee's identification and residence documents, and perhaps information regarding the employer's business.
Grace Period for Existing Workers
Since it was ordered that a smooth transition should be provided, the government has declared a grace period for foreign nationals who are already legally working in Georgia prior to the March 1, 2026, deadline. This is an important provision which will avoid massive disturbance in the economy and allow existing workers and their employers to have enough time to abide by the new regulations. This time, these people will have until January 1, 2027, to get their new work permits. This nine-month window is an important way to give businesses the chance to get their ducks in a row and prepare to attend to their responsibilities before facing the consequences of non-compliance. It gives a phased solution whereby firms would process the permits of their existing foreign employees over an alteration instead of the entire challenge.
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Exemptions and Penalties: Key Provisions to Note
Although the new work permit regime is wide in nature, it is not application-based for all foreign nationals. Certain statuses have been taken into consideration by the regulation, having specific exemptions built in, which is a critical detail that may concern the affected individuals.
Who Gets Exempt?
There are various classes of people for whom the new requirement of a work permit does not go into effect. These include:
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Permanent Residence Holders: They already received permanent residency in Georgia; hence, they will not be required to get a separate work permit. These come as permanent residents, and some of them already have the right to work in the country.
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Recognised Refugees and Asylum Seekers: People with such statuses will also be exempt. This is as per the international humanitarian requirements and ensures that refugees can legally support themselves.
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Investment Residence Permit Holders: Foreigners who have obtained a residence permit by making a major investment in Georgia will not require an individual work permit. It is an encouragement to foreign investments and forms a major component of the economic policy of the government.
Such exceptions are essential to a particular group of foreigners and denote the fact that the government is eager to direct the new regulation to a particular group of the workforce instead of announcing a blanket policy that applies to all foreign residents.
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The Consequences of Non-Compliance
The government is also introducing a punitive framework that aims to make the new system serious. The foreign national and his employer will be liable to fines in case they fail to comply. The fines would be heavy enough to act as a deterrence, where the fines relating to subsequent offences are doubled or, in some cases, tripled. To an employer, this may imply a considerable financial liability and possible legal headaches, as well as harm to the image of the company. To the foreign workforce, failure to comply would attract fines and, in the worst situations, problems with their legal stay in the country. The system of penalties, which is constituted on a tiered model, makes this commitment clear to the government, which strives to implement the new regulations and professionalise the foreign labour market.
Why the Change? The Rationale Behind the New Law
The new work permit system does not emerge as an independent policy choice but is one segment of a much wider strategic move of the Georgian government. Its expressed aim is to be able to monitor and control the participation of foreigners in the labour market better. This indicates that the government has intentions of understanding the demographics and skills of its foreign workforce in a clearer manner. A centralised system allows the authorities to monitor the level of foreign workers, the industries where they work, and how long they stay. Such information can, in turn, be applied in policymaking, like how building or overbuilding of skills in any particular industry is identified. It also offers a strategy to make sure that foreign workers are not being taken advantage of, but, on the contrary, they work legally.
In addition, the new system seeks to establish a more level playing field amongst domestic and foreign workers. Standardisation of the process will enable the government to make sure that all employers, whether they are hiring a Georgian or a foreign national, are operating under the same labour laws and regulations. This institutionalisation is an important move for not only a country that needs to become a magnet in terms of attracting high-skilled international talent but also a safeguard to its local workforce.
Conclusion
The March 2026 launch of Georgia's mandatory work permit system will be a touchstone in the immigration and labour policy of the country. This change of a relatively loose system into a formal, controlled structure is a strong indicator of how the government wishes to professionalise and have a closer look at its foreign workforce. So, whereas the change entails a new state of administrative effort for both the employers and foreign nationals, the grace period allowed to current employees and the express exemptions of certain individuals and groups serve as a realistic approach to fulfilment. Finally, this new policy will transform the geography of expatriate employment in Georgia, and everyone involved has to be active and informed to fall in line with the new rules. To know more, visit TerraTern now!
