Soso Phkhadze says the changes in labor law could increase unemployment and decrease salaries

Representatives of the association's member companies discussed the planned changes in the labor legislation again today. The event was planned and organized by the Georgian Business Association. Problematic issues related to the scheduled changes in labor law were discussed during the meeting, such as term labor contracts, internships, overtime limits, minimum wage determination, changes in overtime pay, an extension of labor inspection mandate and more.

According to Soso Pkhakadze, President of the Business Association of Georgia, the member companies of the Association once again had the opportunity to discuss practical results of the expected changes for employers and employees, as well as the investment environment and economic indicators that will follow these changes in the country.

Soso Phkhakazdze shared his opinion once again today, claiming that these changes hold major threats to Georgia’s workforce and economy in general.

“At this point, a significant portion of the planned changes to labor law is threatening as it violates the balance sheet and interferes with business activities unintentionally, which could significantly harm the current business environment in Georgia. These changes could lead to rising unemployment, lowering wages and stopping certain industries altogether, thus ultimately causing significant economic damage to the country, which, of course, could hinder the country's development,” stated the President of the Georgian Business Association.

Executive Director of Georgian Business Association Levan Vepkhvadze also commented on the topic. Vepkhvadze noted that the Association is actively involved in the process of working with the initiators of legislative changes.

"All the risks and arguments as seen through the eyes of the business sector are well known to the authors the project and hopefully this will be taken into account before initiating the draft amendments to parliament," said the Executive Director of Georgian Business Association. The business association also has planned to meet with economic experts, representatives of international organizations and other interested institutions soon.

The Business Association of Georgia has been intensely collaborating with the Business Ombudsman for the past couple of months and according to the president of the association, they plan on continuing their work with the institution, regardless of its new leadership.

“We have been working very effectively with the Ombudsman institution since the very first days, our cooperation was very interesting and it will continue either way. We will meet with any person who will be the head of this institute, and as I said, we will continue to cooperate in a professional format. I think it will bring more good to the country. So far we have had a very good relationship with Mr. Irakli and his staff. It’s been the case with the predecessor and will continue to be the case in the future," said Soso Pkhakadze.

Business Ombudsman Irakli Lekvinadze and his deputy Levan Kalandadze have recently resigned. It is not clear at this time where Lekvinadze and Kalandadze will continue working or who will take the position of Business Ombudsman.