Martindale

Employment and Labour Law: 2nd edition

Greece

Kyriakides Georgopoulos & Daniolos Issaias Law Firm Effie G Mitsopoulou

1. SOURCES OF EMPLOYMENT LAW

Employment relationships are regulated in much the same manner as in most European countries. The sources of labour law are numerous, of varying priority and importance. The principal sources of Greek labour law regulating employment relationships are the following:

1.1 Greek Constitution

The Greek Constitution contains important provisions relating to employment, which have direct effect and may be invoked by individuals within the context of a dispute or litigation. Such provisions include recognition of collective agreements and free collective bargaining, equality before the law, right to equal pay, freedom of association and protection of associations and determination of the general working terms by law, as further supplemented by collective labour agreements contracted through free negotiations and, in case of failure, by the rules imposed by arbitration.

1.2 Greek Civil Code

Articles 648-680 of the Greek Civil Code provide several general principles on employment agreements, but the regulation of detailed terms of employment is entrusted to special legislative and statutory provisions on matters of labour law.

1.3 Laws

There is an extensive structure of laws, legislative decrees, presidential decrees and ministerial decisions (which are enacted on the basis of legislative authorisation) for the regulation of employment relationships. Greek labour legislation is detailed and deals exhaustively with various aspects of the employment relationship while recognising the managerial right of the employer so long as he does not exercise it abusively or in a manner perceived as constituting detrimental change to the terms and conditions of employment.

1.4 Case law

The decisions of the courts constitute another source of law, whereby all relevant labour legislation is open to further interpretation and development through the resolution of labour disputes and the formation of new principles by the judges.

1.5 International treaties

As expressly provided by the Greek constitution, international treaties, when ratified by law, form an integral part of the Greek legal order and prevail in case of conflict over any law, decree or decision. Greece is a member of the International Labour Organization (ILO) and has ratified several treaties adopted under the auspices of the ILO, the most important being the Conventions on the Freedom of Association and the protection of the Right to Organise (no 87), the Right to Organise and Bargain Collectively (no 98) and Equal Remuneration (no 100).

Moreover, the relevant provisions of the EU Treaty provide certain protection to EU nationals concerning free movement of goods and services, equal pay for men and women, general prohibition of discrimination, freedom of competition etc.

Further to these sources of labour law there are other independent forms which contribute to the regulation of specific labour relationships, the most important of which are the following:

1.6 Collective labour agreements

An important part of labour legislation is the collective labour agreements, concluded between workers’ unions and employers’ associations. Compliance with the provisions of collective labour agreements is compulsory, irrespective of whether or not they are a result of statutory legislation. According to Law 1876/1990 the provisions of a collective agreement constitute ‘legal norms’ and have binding effect upon the labour issues they regulate. An individual employer can also validly conclude a collective labour agreement provided that he employs at least 50 people. The purpose of a collective labour agreement is to regulate, in a compulsory manner, a substantial part of the employment relationship. The collective labour agreements are distinguished in general national, national or local agreements concerning the same profession. Collective agreements can be concluded at the individual company’s level as well.

The validity of the collective labour agreement starts from the date it is submitted to the pertinent Labour Inspectorate, except if the contracting parties agree on retroactivity. Their term may be extended for a definite or indefinite period (but not exceeding two years) and may be proclaimed as compulsory for all employees of the same profession or industry by a ministerial decision, provided that employers employing over 50 per cent of the employees of that profession or industry are contracting parties to the relevant collective labour agreement.

In case the negotiations between employers and employees reach a deadlock, the law prescribes specific provisions of mediation and arbitration. Hence, a decision issued by a mediator or an arbitrator, according to the mediation/arbitration procedure, has the binding effect of a collective contract.

1.7 Internal labour codes or regulations

Companies which employ more than 70 people have to draft an internal labour code or regulation, which is drafted either unilaterally by the employer or by the employer together with the employees’ representatives. These rules regulate only the relations formed in the course of the execution of work and are intended to ensure fair and uniform treatment of all employees, coherent policy and disciplinary sanctions. Such labour codes or internal regulations can include all ethical and business codes or other policies applied by the company. The rules once finalised must be submitted and ratified by the Labour Inspectorate (Law 2874/2000).

1.8 Priority of sources

In the event of a conflict, there is an order of priority upon which the aforementioned sources of labour law apply. The general notion is that a provision originating from a higher source of law is more powerful than a provision originating from a lower source. The Constitutional provisions prevail over the legislative provisions of a lower level. Equally, the provisions of law are higher than collective agreements and prevail over these provisions and collective agreements provisions precede rules of work. However, certain exceptions exist when provisions resulting from a lower source regulating matters at a lower level are more favourable for employees.

2. PRINCIPAL INSTITUTIONS

The principal governmental institution for the regulation, monitoring and administration of labour relationships is the Ministry of Labour and Employment, which comprises central and regional services through various departments and inspectorates, the most important of which are the following:

  • The General Inspectorate of Administration, which comprises the internal administration of the Ministry as well as the supervision of other employment organisations.
  • The General Labour Inspectorate, which regulates issues on terms and conditions of employment, collective agreements, collective relations, organisation and education, social protection, equal opportunities etc.
  • The General Directorate for Security and Hygiene of Labour, which regulates issues on safety conditions and hygiene of employees, such as security at work, training, treatment, medical supervision at work etc.
  • The General Secretariat for the administration of EU and other financial resources, ie the application of certain EU programmes, as well as joint action with other EU organisations.
  • The General Secretariat of Social Insurance, which has been subjected to the authority of the Ministry of Labour and Employment by virtue of Presidential Decree 372/1995. The said Secretariat has a supervisory role over all social insurance entities operating in Greece.

By virtue of Law 2639/1998 a special ‘Body of Labour Inspectors’ has been formed, whose principal role is the inspection of the labour law provisions, the prosecution of those violating labour legislation, parallel to, and independently of, any sanctions imposed by other authorities (ie police) and reporting to the ministry any irregularities or problems that are not adequately provided for under the existing legislation.

By virtue of Presidential Decree 360/1997 the Ministry of Labour and Employment maintains the supervision of the following autonomous organisations:

  • Organisation for the Employment of Labour Force (OAED, as per its Greek initials);
  • Worker’s Household Organisation (Ergatiki Estia, as per its trade name in Greek); and
  • Worker’s Housing Organisation (OEK, as per its Greek initials).

Law 1264/1982 governs the structure of the labour union organisations. It provides for a first, second and third grade of labour organisations, the supreme association of which is the General Confederation of Workers of Greece (GSEE, as per its Greek initials). This Law outlines the function, controls the operation and describes the rights and obligations of labour unions. The same Law 1264/1982 also protects the interests of labour union members (see also section 7 below).

Further to the aforementioned organisations and departments, reference must also be made to:

(1) the Supreme Council of Labour whose board consists of representatives of the government, social partners and specialists, constituting an advisory body issuing opinions on various labour matters such as work regulations, work conditions, hours of work etc and (2) the Organisation for Mediation and Arbitration (OMED, as per its Greek initials) – see section 3 below.

3. ROLE OF THE NATIONAL COURTS

For the settlement of collective or individual disputes between employer and employee, the Greek Code on Civil Procedure provides a specific chapter, which bears the title ‘Labour Disputes Procedure’ (arts 663-676). This procedure, which falls under the special jurisdiction of the Single Member Court of First Instance, is more flexible, shorter and simpler than the ordinary one. The procedure on evidence is not subject to strict conditions and the judge may use any available means of evidence. The court’s ruling is usually issued within a relatively short period of time.

3.1 Mediation and arbitration

Alternatively, the resolution of collective labour disputes arising out of unsuccessful collective bargaining, strikes or lockouts can be effected through the Organisation for Mediation and Arbitration (OMED). This organisation is an autonomous public legal entity and is constituted by a number of independent mediators/arbitrators who are appointed for a three-year term and who can be re-elected. Prior to the submission of a dispute to mediation/arbitration, a summary procedure of reconciliation is provided by law. If the reconciliation procedure fails, then the parties may resort to mediation.

The submission of a dispute to mediation can be effected unilaterally by either party or by both parties, upon mutual agreement. If the mediator is unable to reconcile the parties within 20 days, he may submit his own proposal, which can be accepted or rejected within five days. If both parties accept the mediator’s proposal, then the proposal acquires the force and effect of a collective labour agreement. Resorting to arbitration is permitted by virtue of agreement of the parties or unilaterally by either party, if the other party rejected outright the mediation, or by the labour unions, in cases where the employer rejected the mediator’s proposal.

The arbitrators, like the mediators, are appointed by common agreement or are chosen by lot from the list of authorised arbitrators of OMED. The arbitrator’s award should be issued within a short period of time (maximum 30 days), has the validity of a collective labour agreement and is binding upon the parties retroactively since the day of submission of the dispute to mediation.

4. EMPLOYMENT STATUS AND DISTINCTION OF EMPLOYEES

Greek labour law includes several categories of employees in accordance with the nature of the work/services they are involved with.

Labour contracts may be distinguished in (a) independent services contracts, (b) contracts for the hiring of work or (c) employment agreements. Labour law governs only employment agreements which have the distinctive feature of the personal, legal and financial dependency of the employee on the employer. Hence, the provisions of law are not applicable to self-employed individuals providing services.

Under Greek law, employees are distinguished in accordance with the nature of their work, blue-collar and white-collar. This distinction is made on the basis of the nature of the work performed (Supreme Court Decision 591, EED 53 (1994) p. 339). The practical role of this distinction concerns mainly (a) severance payments, (b) the payment of salary (daily wage or monthly) and (c) the compensation under art 5 of Law 435/1976 due to retirement.

Another category provided under Greek labour law is that of part-time employees. According to Law 1892/1990, as supplemented by Law 2874/2000, part-time work is contractually or informally defined work for an indefinite period of time, daily or weekly, of lesser hours than normal legal working hours. Part-time employees are entitled to full insurance coverage (when they work more than four hours per day), vacation and bonuses.

A further distinction also exists between fixed-term contracts and employment agreements for an indefinite period. A fixed-term contract ends when the contractual term expires or when the contractual work agreed upon is completed. Article 671 of the Greek Civil Code provides that a contract for the hire of work concluded for a fixed term shall be deemed renewed for an indefinite period if upon the expiration of its term, the employee continues to work without the opposition of the employer. The crucial element of the distinction between indefinite and fixed-term employment contracts arises in cases of dismissals and severance payments. Article 8 of Law 2112/1920 prohibits employers concluding successive fixed-term contracts with employees, ie dismissing and subsequently re-employing them, when there is not a justifiable reason. In such case the employment agreement is considered as an employment agreement for an indefinite period of time, as recently regulated by P.D.81/2002, as amended by P.D. 180/2004.

Greek labour law does not contain special provisions for executive employees, or employees holding managerial positions (directors etc). Case law regulates their special status.

5. CONTRACT

Within the context of an employment contract, according to the provisions of art 648 of the Civil Code, the employee is obliged to provide his employer with the work required, for a fixed or indefinite period of time, and the employer is obliged to pay the agreed remuneration.

In particular, the main characteristics of an employment contract are the dependence of the employee on the employer, the obligation of the employee to perform his work in exchange for payment by the employer, the continuity of the relationship (for a fixed or an indefinite period of time) and the additional secondary obligations of the parties.

The employment contract constitutes the foundation for the establishment and the determination of the employment relationship. It regulates the relationship between the employer and the employee and establishes the rights and duties of both parties.

5.1 Formal requirements connected to the formation of an individual employment agreement

The basic requirements for the conclusion of an employment agreement are provided in art 185 of the Civil Code whereby: ‘A person proposing the conclusion of a contract, is bound thereby for the whole period during which it can be accepted by the other person’. Such offer is linked to the acceptance that has to be communicated to the offeror, upon which the contract is concluded (art 192 of the Civil Code).

The employment agreement must be in writing. In case it is concluded orally, it is still binding upon the employer, who may be subject to sanctions for not observing the relevant legal requirements (P.D. 154/1996). The parties are free to determine the content of their agreement, with the exception of cases where specific requirements are stipulated by law (eg, maximum working hours per week, annual leave of absence, minimum legal severance etc).

Any employment agreement must be notified, within eight days, to the pertinent labour authority (OAED, per its Greek initials). Special regulations are provided for the employment of particular categories of people (such as disabled, war victims).

Every company employing more than 50 people must include in its headcount up to three to four per cent of the categories of persons with special needs (handicapped, families with many children, war victims etc.)

The right of foreign nationals to work in Greece is in general recognised and protected by virtue of relevant constitutional provisions, although the right of employment is subject to various restrictions, the most important of which is the ‘reciprocity requirement’. Reciprocity is not required for EU nationals.

The terms of employment derive from the written employment agreement and from implied terms. Implied terms are in particular those concerning public order (see below) and the terms established by collective agreements.

In any case, it is recommended that the employment agreement should be sufficiently precise in order for the contracting parties to ensure its applicability.

6. TERMS AND CONDITIONS

6.1 Terms included in the employment contract

By virtue of Presidential Decree 156/1994, implementing Directive 91/533/EEC, the employer has an obligation to provide the employees with the following minimum information:

  • the full particulars of the contracting parties;
  • the agreed place of work, the headquarters of the firm or the employer’s address;
  • the position or the specialisation of the employee, his rank, the category of his employment and the scope of his work (job description);
  • the date on which the employment contract or relationship starts (started) and its duration, if it is for a fixed period or for an indefinite one;
  • the duration of the leave of absence with pay, as well as the manner and time it will be granted;
  • the obligation to pay severance in case of termination of the employment contract or relationship and any advance notices by the employer and the employee that may have to be observed, according to the law;
  • any and all amounts due to the employee for basic salary, bonuses etc and the time and manner in which these will become due;
  • the normal daily and weekly working hours of the employee; and
  • reference to the applicable collective labour agreement, which determines the minimum payment and work conditions of the employee. Employees can be informed on the above by delivery of a written employment agreement:

(a) within a period of two months from the actual starting date of employment in case of an indefinite duration; (b) within 15 days for part-time employment; and (c) within five days for fixed-term employment.

A fine can be imposed on any employer infringing the provisions of Presidential Decree 156/1994. Moreover, and further to the above explicit terms, the following implicit terms (compulsory terms) are applied in an employment relationship:

  • the employer must abide by the maximum legal working hours per day and per week (see below);
  • the employee does not work on Sundays or on public holidays and is allowed annual leave (see below);
  • in particular circumstances, the employee is allowed to receive leave of absence (maternity leave, sick leave, marital leave, educational leave etc);
  • the dismissal of an employee has to be made in writing and the legal severance, calculated on the basis of the years of past service times the number of the total salary received during the employment contract, as per the provision of law, must be paid; and
  • all provisions regarding collective agreements must be followed and applied by employers (maximum working hours, minimum remuneration etc).
6.2 Confidentiality, non-competition

Confidentiality and non-competition clauses are usually included in an employment agreement. Employees have a duty to keep confidential any information related to the employer and its business, which is considered to be of a confidential nature. Moreover, employees have an obligation to abstain from competitive practices during the whole duration of their employment and, very often, for a reasonable period of time after termination of the employment agreement, if specific conditions are met.

6.3 Working time

The legal working time is 40 hours per week, except for specific categories of employees, such as bank employees, electricians, builders, under age employees etc, who are employed for less hours. The employer and employees can also agree that the employees will be employed for less working hours but remunerated for 40 hours. Out of the 40 legal working hours per week, the first five hours after the legal working time are considered to be ‘overwork’ (41st to 45th) and are remunerated by an increase of 25 per cent. The following three hours after ‘overwork’ (46th-48th) are considered legal overtime and for the realisation of which an announcement or a permission must be granted by the competent labour inspection authority. If an announcement is made or permission is granted, then the realised overtime is remunerated by an additional 50 per cent (up to 120 hours annually per employee) or an additional 75 per cent (for more than 120 hours annually per employee).

Any overtime not realised according to the legal procedure is considered as special overtime and, if realised, is remunerated by an additional 100 per cent increase.

6.4 Rest breaks

Employees must not work on Sundays or on public holidays. In case an employee works on Sunday or on a public holiday, he must be compensated by an additional 75 per cent increase, and another day off should be granted by the employer.

6.5 Annual leave

According to Law 3302/2004, employees are entitled, as of the first year of their employment, to 20 days of paid holiday and proportional holiday allowance. After two years of employment, the employees are entitled to 21 days of paid holidays. During the first and second year of employment, the employees can take their holiday either proportionally to the time they have worked by a proportion of two days per month, or cumulatively in December during the year in question.

After three years of employment, employees are entitled to 22 days of holiday, whereas, after ten years of employment with the same employer or after 12 years of employment irrespective of the employer, employees are allowed 25 days of holiday.

6.6 Renewal of fixed-term employment agreements

Presidential Decree 180/2004 protects employees subject to fixed-term contracts. According to this Presidential decree, the unlimited renewal of fixed-term contracts is only allowed if it is particularly justified by the nature of the work provided. In any case, if the fixed-term contract is agreed for a period longer than one year or if successive fixed-term contracts concluded between the same employer and the same employee, for the same object, are more than two, within a period of two years, then such employment agreements are considered as agreements for indefinite term, with all the consequences provided by the law for indefinite term employment agreements, ie payment of compensation in case of termination etc.

7. EMPLOYEE REPRESENTATION

Employees in undertakings employing more than 20 people have the right to vote and establish a works council for their representation.

Works councils are made up of three to seven members and are elected by the employees of the undertaking during a general assembly convocation. Works councils have an advisory role contributing to the improvement of working conditions and the development the undertaking through its participation. Hence, they purport to make joint decisions with the employer on the following:

  • the draft of the regulations of the undertaking;
  • the health and security regulations;
  • the planning of holidays;
  • the relocation of employees disabled by work accidents to appropriate posts; and
  • the planning and the control of cultural, entertainment and social events.

Even though the existence of works councils is not common practice in Greece, EU Directive 94/45/EC, on the establishment of European works councils in Greece has been implemented into Greek Law by Presidential Decree 40/1997.

According to Presidential Decree 40/1997, the representatives of the employees who participate in the special negotiating body can create the European works council in collaboration with the central management of the undertaking. The said representatives are elected by the trade unions, where they exist, or, in the alternative, by works councils, where these function, or, finally, by the employees in a direct election (art 12 of Act 1264/1982 and art 4 of Act 1767/1988).

The European works council is created either by the initiative of the central management of the undertaking or by the initiative of at least 100 employees or their representatives. Where no initiative is taken, then there is no obligation to create a European works council.

According to Greek law, the European works council representatives are covered by a specific protection, which is the same that Greek union members enjoy, ie protection against dismissal during their term and for one year following the end of their term, special paid leave of absence that may extend to 15 days per year in order to exercise their rights, such as participation in meetings of the European works council etc. They are also entitled to two hours’ leave per week in order to inform the employees of all related issues.

Presidential Decree 40/1997 does not refer directly to the term of the office of European works council representatives, but provides that the elections of the Greek representatives should take place according to Greek law (Laws 1767/1988 and 1264/1982), which regulate the election of local unions and provide that the elections take place every two years. However, Greek law does not provide for any legal consequences in the case of non reelection of the representatives in question.

8. INFORMATION AND CONSULTATION

The employer, prior to the enforcement of his decisions, has an obligation to inform the employees and/or their union leaders, of the following matters:

  • change in the legal status of the company;
  • transfer, expansion or limitation of the company’s operations;
  • introduction of new technology;
  • change in the structure of the personnel (restructuring);
  • annual planning of investments in health and security measures;
  • planning of overtime work;
  • general trends of the undertaking in the economic field and the production that may affect the employees; and
  • financial statements of the undertaking and any related details.

The dissemination of such information should take place regularly (at least once a year) and every time it is required by the works council, within 20 days as of the relevant request.

9. EQUAL OPPORTUNITIES

9.1 Forms of discrimination prohibited under Greek law

The basic principle of equal treatment is regulated under the Greek Constitution and it is incorporated into Greek law according to the EU directives. In particular, Directives 2000/78/EC and 2000/43/EC have been recently implemented into Greek Law (Law 3304/2005). Moreover, a new programme has been currently launched by the EU called ‘EQUAL’, focusing on the prohibition of inequalities and discrimination against employees.

By virtue of these legislative provisions, direct or indirect discrimination based on racial or ethnic origin, religion or belief, disability, age or sexual orientation in the field of employment and occupation is not allowed. Direct discrimination occurs when a person is treated less favourably than another, while his employment status is the same or comparable. Indirect discrimination occurs when a provision, a practice or a criterion puts a person at a disadvantage, as compared with other people of the same employment status. Indirect discrimination can only be justified by a legitimate purpose and where the means of achieving the purpose are appropriate and necessary.

The foregoing provisions apply to all people whether in the private or public sector and in relation to work access, all types of vocational training, vocational guidance, working conditions, involvement in workers’ and employees’ organisations, social protection, social advantages, education and supply of goods and services that are available to the public.

Differentiation can be justified only if, due to the nature or the context of the particular working practice, it constitutes a basic and crucial working condition, if the aim is just and the condition appropriate.

Any violation of the provisions of the law on discrimination is punishable by imprisonment for between six months and three years and by a pecuniary penalty of €1,000 to €5,000; administrative penalties may also be imposed.

9.2 Rights available to parents

A pregnant employee is entitled to a leave of absence of 17 weeks (eight weeks before delivery and nine weeks after). In case delivery occurs after the period of eight weeks, the leave of absence is extended accordingly.

The mother may, for 30 months after birth, either leave work one hour earlier or arrive in the morning one hour later. Alternatively, for the first 12 months, the employee may work two hours less per day and for the following six months one hour less per day, without any reduction of pay.

In case of death or hospitalisation of the mother, the father may be allowed parental childcare leave. The father can receive a separate parental leave, without pay, to take care of the child up to the age of three-and-a-half years.

The parental childcare leave is also provided for non-married parents and adoptive parents.

10. DISCIPLINE AND TERMINATION

10.1 Disciplinary procedures followed by employers

The so-called Internal Labour Codes may regulate matters, such as the imposition of disciplinary measures to employees. The measures imposed may be the following: • oral or written record;

  • written warning;
  • pecuniary sanction – the employer has the right to set off up to one twenty-fifth of the employee’s salary; or
  • leave or, according to an expression of the law, compulsory abstention from work – this penalty can last up to ten days per year. For the imposition of any such penalty, the existence of an approved Internal Labour Code or Regulation is a prerequisite.

Before the imposition of any penalty, the employee must be given the right to explain and justify himself.

10.2 Termination

The employment agreement may be terminated in the following ways:

  • In cases of fixed-term contracts, upon the expiration of the employment agreement.
  • In cases of employment agreements of an indefinite term, by the intention of both parties to terminate the agreement.
  • The death of either the employee or the employer (if he is a physical person). In the case of the employer’s death, the contract terminates if it was concluded because the employee was orientated to his or her person or in case there has been no succession to the undertaking.
  • In case the employer and the employee become the same person.
  • The unilateral act of termination by the employee (resignation) or of the employer (dismissal). The mere change of employer, his bankruptcy, the dissolution of the undertaking or an event of force majeure are not events justifying termination of the employment contract.

The procedure of termination of the contract depends on the type of the employment contract, ie whether it is a contact for a fixed or indefinite term and on the contracting party (employer or employee) who terminates the contract. Contracts for an indefinite term can be terminated at any time, unilaterally by either party, with or without prior notice.

If the employee has been working in the undertaking for less than two months then the termination of the contract does not require any formality.

10.3 Severance payments

If the employer terminates the contract with prior notice then he will have to pay half the severance payment provided by Law 2112/1920. The severance payment is subject to a cap prescribed by Law 3198/1955, which varies depending on whether the employer belongs to the private or the public sector. In case the employer terminates the contract without prior notice, then he will pay the whole amount of the severance, which will be calculated according to the employee’s seniority.

Severance payments are calculated on the normal remuneration of the last month of employment of the dismissed employee, increased by any and all allowances (holiday pay etc) to which the employee is entitled as part of his usual pay.

The law provides, as per the table below, the amount of severance payment the employer must pay when he decides to dismiss an employee. Such severance payment is calculated on the monthly base salary of the employee at the date of termination, multiplied by 14 (so as to take into account the Christmas bonus – one salary – the Easter bonus – one half salary – and the annual leave of absence bonus – one half salary) and divided by 12 in order to average it on a monthly basis.

Such average salary is increased by all the fringe benefits the employee receives on a regular basis (such as car allowance or value of car, housing allowance, mobile telephone, insurance coverage, commissions – if the commission plan or variable pay scheme forms part of his/her individual agreement or is covered by a collective agreement, bonuses – if given by the employer on a regular basis and on a predetermined percentage etc). The average of the last two months’ fringe benefits is taken under consideration in order to calculate the amount that must be added to the base salary for the correct calculation of the severance due upon termination.

In the case of an annual bonus, then the average of the last two or even three years is taken under consideration divided by 12. For such annual bonus, however, in order to be taken into consideration it must be expressly agreed in the employment agreement that it is payable to the employee without any discretionary power of the employer to revoke it at any time. In other words, it must clearly have the character of regularity and repetition; otherwise it should not be taken into account.

Paying the right amount of severance in case of termination is extremely important since, if the correct amount is not paid, the employee has the right to file a lawsuit contesting the validity of the termination, requesting the court to declare it abusive and invalid. In case such lawsuit is accepted by the Court, then the employee is, retroactively to the date of termination, considered as being employed by the company and salaries due are owed to him, upon setting off the amount of his severance.

Period of employment Severance payment

2 months to 1 year 1 month More than 1 year 2 months

4 years to 6 years 3 months 6 years to 8 years 4 months 8 years to 10 years 5 months

10 years 6 months Adding one month for each year l onwards until 28 years 24 months

In all cases of termination, the written form of the termination is required, the legal severance has to be paid on the date of termination and the employer has to notify the OAED of the dismissal of the employee. If the employer does not inform OAED, a fine may be imposed.

If the severance is not paid the moment the written form of termination is handed over or served to the dismissed employee, the termination is null.

The termination of the employment agreement is also null and void if the dismissal is considered abusive pursuant to a decision of the competent court of justice. The employee has a three-month deadline as of the termination date, to contest before the Court the validity of the termination.

In case of an illegal termination, the employee should continue to offer his work to the employer and in case the employer refuses to accept it, then the employer may be obliged to pay salaries due for the whole period, provided the termination is judged illegal by a court decision.

In addition in case of a null termination, an employee may also ask for compensation for moral damage.

10.4 Applicability of rules under special circumstances

A fixed term contract is ipso jure terminated at the agreed lapse of its term, without formal written notice. If, however, the labour relationship continues de facto after the lapse of the term, then the contract becomes one of an indefinite term. It is further provided by Greek case law that subsequent renewals of fixed term contracts are assimilated to a contract for an indefinite term.

The contracting parties to a fixed term contract may proceed to an extraordinary termination, even before the expiration of its term in case of serious cause.

Limited special cases, concerning employees belonging in particular categories of work, provide for special procedures. In particular:

  • it is provided that veterans of war or members of their families can only be dismissed pursuant to a relevant court decision establishing the incapacity of the employee to work or the impossibility of the undertaking to employ such persons;
  • employees who complete their military service can not be dismissed within one year after their return. In case of invalidity of the particular dismissal, then the employee may ask for compensation equal to six months’ salary;
  • pregnant employees or new mothers cannot be dismissed during the pregnancy or for one year after the birth;
  • members of the Board of Directors of a trade union, as well as the founding members of a trade union, cannot be dismissed during their term of office or for one year after; and
  • undertakings in financial difficulties, instead of making their employees redundant, may place them in suspension for a period of three months per year’s service, during which only one half of the normal salary is due.

11. COLLECTIVE DISMISSALS

Specific provisions exist for collective redundancies, which are subject to strict conditions and prerequisites, ie maximum percentage of employees’ dismissals per month, specific procedure of their application. The law provides that in order for the dismissals not to be considered as collective, undertakings employing more than 20 employees have to abide by a certain threshold in one calendar month and in particular, for companies with a workforce of 20 to 200 employees, four dismissals per month and for companies with over 200 employees two to three per cent of the total workforce, but not more than 30 employees in one month. In the case of collective dismissals, consultation with the representatives of the employee, as well as with the Ministry of Labour and Employment must take place and alternative solutions proposed so as to minimise the impact of the dismissals. In any case for the application of collective dismissals the approval of the Ministry of Labour is required, although rarely granted.

11.1 Procedure

The employer has to inform the employees’ representatives of its intention to proceed to collective dismissals and provide the reasons for it, as well as all other required information. It should thereafter proceed to consultations and negotiations, which should not last less than 20 days. Should the employer and the employees’ representatives not reach a solution, the consultation can be extended for 20 more days by decision of the Prefect or the Minister of Labour and Employment. In case a common solution is not reached, it is up to the Prefect or the Minister of Labour to accept or reject the demand for collective dismissals within ten days. If again a decision is not reached, then the employer may proceed to collective dismissal, either within the limits of the agreement which may have been reached between the employer and the employees’ representatives during the consultation process or, in the absence of any such agreement, only within the above thresholds.

In some cases, as mentioned above, dismissals are not allowed at all due to particular circumstances (maternal leave, military service, war victims or veterans, trade union officers).

In case the employer does not respect the provisions of the law on collective dismissals, then the dismissals are null.

In cases of collective dismissals, the employer must apply as well the same provisions concerning the termination of employment contracts (written form, payment of severance etc).

12. IMMIGRATION LAW

The right of foreign nationals to work in Greece is in general recognised and protected by virtue of relevant constitutional provisions, although the right of employment is subject to various restrictions, the most important of which is the ‘reciprocity requirement’. Reciprocity is not required for EU nationals.

EU nationals are free to enter Greece not only in order to take up an offer of work or negotiate the same, but also to seek employment without prior offer.

Moreover, EU citizens may freely reside in Greece. The only requirement for a lawful residence in Greece is the possession of a valid EU citizen passport.

Should an EU citizen wish to work in Greece then he will have to submit the following documents to the competent authority:

  • Photocopies of the passport
  • Three photos
  • An official declaration stating the place of residence
  • Health insurance (either in Greece or in another EU country as long as it covers

Greece as well) – translated.

For non-EU citizens the situation is different.

Non-EU citizens need to obtain a visa from the Greek Authority in their country (usually the Greek Consulate). Then, according to the category they fall under according to Greek law on immigration, and after having obtained a visa from the Greek authorities abroad, the person interested in working in Greece, should submit his visa with other relevant documents (eg, employment agreement, medical information, passport photos, certificate proving the place of residence in Greece etc) to the competent authorities in Greece and more particularly to the Greek Prefecture of his place of residence.

Greek Law on immigration (2910/2001) was amended by Law 3386/2005.

The amending law provides for more categories of people allowed to receive a work and residence permit. A third country citizen now only receives one permit, which is both valid as a residence and a work permit.

More particularly, Greek immigration law provides that a non-EU citizen may obtain a work permit to work in Greece as: a dependent employee, a temporary employee, an executive, for provisional transfer for the provision of services, an athlete and a coach, a member of an artistic group, an intellectual property rights owner, a member of a foreign archaeological school.

Depending on which work permit will be issued, the procedure to obtain same is longer or shorter and requires more or less documents.

For non-EU nationals, that are not included in any of the categories above and are simple ‘blue-collar’ employees, the employer must ‘invite’ the foreign employee to take up employment in Greece, at a specific position and at a specific place. (This is called in Greece the procedure of ‘metaklisi’. Such ‘invitation’ has to be pre-approved by the competent authorities. Subsequently, the employer must file an announcement for the position to be covered by the relevant employee with the Greek Unemployment Fund. After a three-month period, commencing as of the date of filing the announcement and under the condition that there is no Greek national qualified for said position, the Unemployment Fund will issue the relevant certificate. This certificate and the rest of the documents are submitted to the Labour Inspectorate. The authorities issue their decision after approximately two to three months.

A work permit, depending on the category under which the interested person falls, may be issued from one month to one year and usually last six months to a year with a possibility of renewal.

13. USEFUL REFERENCES

General bodies

Ministry of Labour and Employment
www.ypakp.gr (in Greek)

Publications

Labour Law in Hellas
T. Koniaris: Sakkoulas, Kluwer Law International, 2002

Individual Employment Relationships
S. Vlastos, 2005, Sakkoulas

Labour Law, Individual Employment Relationships
Lyxouriotis, 2005 Nomiki Vivliothiki

Labour Law Individual Employment Relationships, Part I
Zerdelis, 2006, Sakkoulas

The right to terminate the labour agreement
Zerdelis, 2002, Sakkoulas

Labour and Social Security Legislation
Lanaras, 2007

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