კონფერენცია

∘ Ana Chagelishvili ∘
THE IMPACT OF THE PANDEMIC ON EMPLOYEES WAGESIN GEORGIA

Summary

As in the rest of the world, the pandemic crisis has caused a number of economic problems in Georgia: The unemployment and poverty rate has increased, the national currency has been depreciated, and so on. It had negative impact on employees wages and on a number of workplaces.

A number economic sectors, such as education, office work and etc. quickly adapted to changing circumstances by working remotely and online, however, in many areas it could not be managed and organizations were forced to make unpleasant decisions such as wage cuts, making unpaid or even firing from the work.

During the pandemic crisis, the legality of lowering wages and dismissal from the work have become the subject of disagreements between employer and employee. According to the current legislative norms, we can conclude that in the context of such a global threat, the issue of reducing wages and terminating the contracts because of a decrease in the organization's income is completely legal.

It turned out that one of the most sustainable to pandemic restrictions and regulations was agricultural sector in Georgia, which may be due to seasonality.

In the beginning of 2020, the impact of the pandemic was reflected in the deteriorating statistics as well. Ever growing average monthly nominal wage has been declined, which is not the only negative growth. These statistics do not fully reflect the effects of the pandemic crisis, which is due to the specificity of the research methodology. It is likely that reduced working hours and wages, as well as unpaid leave, makes the situatin for employees even more difficult. Added to all this the situation is worse because of informally employed and self-employed people, about whom it is very difficult to gather information.

Restrictions and regulations, which were caused by pandemic, or the lockdown, that temporarily "stoped" the Georgian economy were accompanied by government-sponsored social care, such as helping the people who lost their jobs or withholding wages from income tax and many other actions. However, it is logical that such anti-crisis actions are just one time acts.

The way out of the economic crisis depends primarily on eliminating the cause - the pandemic. However, while COVID-19 danger is active, governments still see a solution in restricting the activities of the population, which further deepens the crisis and aggravates the social background. Even before finding a medical solution, it is very important to find the golden mean that will draw the line between government regulation-restrictions and the spread of the virus.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Ana Chagelishvili ∘ THE IMPACT OF THE PANDEMIC ON EMPLOYEES WAGESIN GEORGIA Summary As in the rest of the world, the pandemic crisis has caused a number of economic problems in Georgia: The unemployment and poverty rate has increased, the national currency has been depreciated, and so on. It had negative impact on employees wages and on a number of workplaces. A number economic sectors, such as education, office work and etc. quickly adapted to changing circumstances by working remotely and online, however, in many areas it could not be managed and organizations were forced to make unpleasant decisions such as wage cuts, making unpaid or even firing from the work. During the pandemic crisis, the legality of lowering wages and dismissal from the work have become the subject of disagreements between employer and employee. According to the current legislative norms, we can conclude that in the context of such a global threat, the issue of reducing wages and terminating the contracts because of a decrease in the organization's income is completely legal. It turned out that one of the most sustainable to pandemic restrictions and regulations was agricultural sector in Georgia, which may be due to seasonality. In the beginning of 2020, the impact of the pandemic was reflected in the deteriorating statistics as well. Ever growing average monthly nominal wage has been declined, which is not the only negative growth. These statistics do not fully reflect the effects of the pandemic crisis, which is due to the specificity of the research methodology. It is likely that reduced working hours and wages, as well as unpaid leave, makes the situatin for employees even more difficult. Added to all this the situation is worse because of informally employed and self-employed people, about whom it is very difficult to gather information. Restrictions and regulations, which were caused by pandemic, or the lockdown, that temporarily "stoped" the Georgian economy were accompanied by government-sponsored social care, such as helping the people who lost their jobs or withholding wages from income tax and many other actions. However, it is logical that such anti-crisis actions are just one time acts. The way out of the economic crisis depends primarily on eliminating the cause - the pandemic. However, while COVID-19 danger is active, governments still see a solution in restricting the activities of the population, which further deepens the crisis and aggravates the social background. Even before finding a medical solution, it is very important to find the golden mean that will draw the line between government regulation-restrictions and the spread of the virus.