Our comment:

It is necessary to set forth a minimum rate of overtime pay of at least 125% at the legislative level, in order to provide employees with decent compensation for excessive work performed.

Inadequate compensation for overtime work requires effective measures from the state. The labor inspectorate should strictly supervise violations committed by employers in this regard.

How are overtime issues regulated?

In 2020, labor reform was implemented in Georgia and overtime work was redefined. According to the amendments made to the Labor Code, overtime work is, on the basis of the mutual agreement of the parties, when an employee works beyond the hours established by the contract. Besides long working hours, work on holidays established under the Labor Code is also considered overtime.

The law mandates that employers must keep accurate records of employees' working hours. This tool aims to keep track of worked hours so that overtime does not become the norm and protect employees from labor exploitation.

According to legislation, employers must notify employees one week in advance about overtime work, aside for exceptional cases. It is necessary to obey and supervise this because it will prevent the normalization of overtime work.

How is overtime work remunerated?

In Georgia, the minimum standard of overtime pay was not set forth, as the parliament removed the 125% increased rate of pay from the draft law following business associations' request.

It should be noted that it is mandatory to agree upon the amount of overtime pay, which should be higher than the regular hourly rate. However, as no minimum standard is set forth, this leaves room for different interpretations by employers. It leaves the possibility to determine a symbolic (for example, an increased rate of 0.01 GEL) or insufficient compensation, which cannot be appropriate and adequate in relation to the additional time and resources spent by the worker.

Often, socioeconomic conditions prevent employees from challenging unreasonable overtime pay practices, so they accept any terms offered by their employer.

An additional problem is that despite the obligation to agree on such a term, sometimes overtime pay is not determined under the contract. Establishing a minimum standard for overtime pay in the Labor would offer solutions to these problems.

What is the approach of the court?

The practice of Georgian courts is also noteworthy in relation to overtime pay. In one of the cases, the court of first instance shared the approach of a 125% increased rate. It based its interpretation on the standard established under the International Labor Organization conventions. Moreover, in another case, the Supreme Court determined 150% as the rate of overtime pay. However, it founded its decision on the circumstances of the specific case.

The approach of the courts is rather significant. Although it should also be noted that in general, litigation is a lengthy and financially burdensome process, which is an obstacle for most workers. In most cases, employees raise the issue of overtime pay within the scope of a dismissal dispute. This does not have a decisive impact on the general situation of workers in this regard.

The maximum permissible limit of overtime work

It is also worth noting that we do not have a maximum limit for overtime work in the country. In the case of adults, the maximum number of hours of overtime work per day or week is not determined. For minor employees, however, it amounts to 2 hours per working day and 4 hours per week.

It is significant that, according to the recommendation of the International Labor Organization and the legislation of the European Union, during the week, the worker's hours, including overtime, should not exceed 48 hours.

Wage theft practice

Wage theft refers to the unfair withholding or incomplete payment of the employee's legal wages by the employer. Such can include unpaid overtime work, illegal deduction of wages, non-payment of compensation due at the time of termination of the employment contract, etc.

Problems related to overtime work and pay occur in all employment sectors, but are particularly common in the service and informal sectors.

კვლევა Research by the Center for Social Justice reveals that employees often don't know what kind of agreement on overtime pay was made between them and their employer. Employers often do not discuss this issue during the oral agreement. Workers are not compensated for overtime hours or the oral/written agreement terms are not fully fulfilled.

Unpaid overtime work is one of the common practices of stolen wages in the country. 88.3% of the study participants say that their labor contract does not provide for overtime pay rates, as required by law. Therefore, a certain part of employees often work outside normal working hours without pay. This has a negative impact on their economic, physical, and mental condition.

Labor rights oversight

In the country, one of the institutions that can fight overtime problems is the labor inspectorate, since with the recent labor reform its mandate has been expanded to cover labor rights supervision in addition to labor safety issues.

One of the most frequently violated rights in the labor inspection protocols was non-remuneration for overtime work.

What should be done?

Given the challenges of overtime work in Georgia, it is critical to implement the necessary changes to protect workers' rights and welfare. Setting forth a minimum standard for overtime pay in the labor code is necessary to ensure fair compensation and prevent potential exploitation. The absence of a clear minimum guarantee allows for different interpretations, which in practice leads to inadequate compensation for additional effort and time spent by workers.

In order to effectively enforce labor rights and combat unpaid, unregulated overtime practices, the labor inspectorate should employ strict and appropriate fines.

Setting a minimum standard for overtime pay will create a more equitable working environment, contribute to social unity, and reduce income inequality.

These changes will have a positive impact on the Georgian labor market and workforce. Workers will feel valued and protected, which will lead to job satisfaction and improve overall productivity.