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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 nonfulfillment of obligations, unless such damages were caused by the forcemajeure 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
Employer

Employee