The Georgian government's recent tightening of the law on labor migration is raising concerns among the business community. David Gelashvili, Co-Chairman of the Legal Committee of the European Business Association (EBA), warns that many businesses, especially small and medium-sized enterprises, may opt to avoid employing foreign workers altogether due to the increased regulatory burden.
Under the amendments adopted by the ruling Georgian Dream party last month, a new system of work permits will be introduced for foreigners seeking employment in Georgia. The law will officially come into force on March 1, 2026, by which time an enforcement mechanism and supporting infrastructure must be developed.
Speaking in an interview with TV-program Analytics, Gelashvili criticized the law for its punitive nature, echoing concerns seen in other recent legislative changes.
"The new law imposes fines not only on foreign workers but also on the businesses that employ them. The penalties have increased significantly, making the process more costly and complex. As a result, many small and medium-sized businesses will likely avoid hiring foreigners altogether," Gelashvili said.
He emphasized that the new system requires additional administrative effort and cost from employers, including monitoring permits, managing renewals, and ensuring compliance with the new procedures. "This means hiring or assigning staff just to handle this new bureaucratic process, which is an extra burden most businesses can’t afford," he added.
Beyond the regulatory complications, Gelashvili pointed to broader labor market implications. Sectors such as agriculture, already suffering from workforce shortages, might be particularly hard hit.
“There are fewer and fewer people living in rural areas, while the government continues to support the growth of the agricultural sector. But where will the labor come from?” he asked. “If the process for hiring foreigners becomes too restrictive, there’s a real risk that crops won’t be harvested or processed in time, especially in time-sensitive sectors like farming, where delays can make production worthless.”
Gelashvili warned that unless there are strong and clear risks to justify such regulation, the new law may ultimately worsen the situation. “Instead of solving a problem, we might be creating one, limiting labor supply in sectors that are already struggling.”
According to the new law, both employers and foreign workers will face fines if employment occurs without the proper permit. Either the employer or the self-employed foreigner must apply for a special work permit through the Ministry of Health, which will have up to 30 calendar days to approve or deny the request.
