Employment Law -Termination, Organizationl Changes

Abstract

Claimant I.G. had been employed on various positions at defendant Non-entrepreneurial (Noncommercial)
Legal Entity Senaki Municipality Sport Association (hereinafter – N(N)LE, cassator,
appellant) since 2007. S/he worked as a Public Relations Specialist on the basis of open-ended
employment contract concluded between the parties on January 27, 2016, and his/her monthly salary was
400 GEL.
Staff list and salary rates of the defendant N(N)LE were approved under the Order No. 55 of March 28,
2016 of the director of the N(N)LE, by which 10 staffing position were reduced including one of the
specialists in public relations affairs. On 26 February, 2016, the plaintiff was warned about a possible
dismissal from the current position due to organizational changes on the basis of Article 37, I, a) of the
Labor Code ("LC"). By the Order No.64 of March 30, 2016, the claimant was dismissed from his/her
position on April 1, 2016, with the final payment - compensation equal to one-month salary.
The staff reduction made by the N(N) LE’s management was preceded by the letter of January 18, 2016,
from Senaki Municipality Governor to defendant’s administration. The letter was stating that N(N)LE
should have taken appropriate measures to allocate the amount not envisaged in the budget, viz. 10380
GEL for implementation of infrastructural projects in the Senaki Municipality in 2016 according to the
ordinance No.594 of the Government of Georgia of November 25, 2015. The author of the letter
requested to obtain aforementioned amount within the framework of the Sports Promotion Program. On
the same day, the Senaki Municipality Administration was notified in writing that the necessary amount
- 16 000 GEL was allocated through reduction of staffing position.
I.G. filed a lawsuit against the employer by which s/he requested annulment of defendant’s Orders No. 55
of March 28, 2016 and No. 64 of March 30, 2016 and reinstatement in work, as well as remuneration of
lost earnings - 400 GEL per month until reinstatement in work.