Employment law in Greece
Employment law in Greece is primarily governed by the Greek Labor Code, along with a range of regulations, collective agreements, and European Union directives. The law aims to protect the rights of employees while ensuring fair working conditions, including regulations on employment contracts, wages, working hours, termination, and health and safety.
Here is an overview of key aspects of employment law in Greece:
1. Employment Contracts
Written Contracts: While written contracts are not mandatory for all types of employment, it is highly recommended to have a written employment contract to clarify the terms and avoid disputes. A contract must outline key terms, such as job duties, salary, work hours, and duration (for fixed-term contracts).
Fixed-Term Contracts: These contracts are for a specific duration or project and will automatically terminate at the end of the agreed period or task. If these contracts are renewed for a certain period (e.g., multiple times), they may be considered as indefinite-term contracts.
Indefinite-Term Contracts: These are contracts with no set end date and continue until either party decides to terminate the relationship, subject to proper legal procedures.
Contents of the Contract: The contract should include key information such as:
Job description and duties.
Salary and payment method.
Working hours and rest periods.
Termination clauses and notice periods.
2. Wages and Salary
Minimum Wage: Greece has a national minimum wage, which is periodically updated by the government. The minimum wage covers most employees in the private sector, and it is higher for those aged 25 and above.
As of 2025, the minimum wage for employees over 25 years old is set at €780 per month (before taxes). For workers under 25 years old, there is typically a lower minimum wage, which is about 70% of the full rate.
Payment of Wages: Wages are generally paid monthly. Employers must pay employees regularly, and wages must be paid directly to the employee or into their bank account.
Taxation and Deductions: Income tax and social security contributions (for both employees and employers) are deducted from the gross salary.
3. Working Hours and Overtime
Standard Workweek: The standard workweek in Greece is 40 hours, typically divided into 5 or 6 working days. The maximum daily working hours are usually 8 hours per day.
Overtime: Overtime is any work performed beyond the regular hours. The Greek labor law stipulates that:
Overtime work is paid at 1.4 times the regular hourly wage for the first two hours of overtime.
Any overtime exceeding two hours is paid at 2 times the regular hourly rate.
Rest Periods: Employees are entitled to at least 11 consecutive hours of rest between workdays. Workers also have the right to weekly rest, typically one full day off (often Sunday), though this may vary by industry or contract.
4. Vacation and Leave
Annual Leave: Employees are entitled to 20 days of paid vacation (four weeks) per year if they work full-time. This is increased to 25 days after working for a company for over 5 years.
The vacation time is pro-rated for employees who work less than a full year.
Public Holidays: Employees are entitled to time off on public holidays, which are designated by the government. If employees are required to work on a public holiday, they are entitled to additional compensation, which may include overtime pay or a compensatory day off.
Sick Leave: Employees are entitled to sick leave in case of illness. Initially, the first 3 days of sick leave are paid by the employer, while the remaining period is paid through the social security system (EFKA).
The amount of sick pay is generally 50-75% of the employee’s salary, depending on the duration of the illness.
5. Maternity and Parental Leave
Maternity Leave: Female employees are entitled to 17 weeks of maternity leave. This includes 8 weeks before the expected birth and 9 weeks after the birth.
Maternity benefits are provided by the social security system and are generally calculated based on the employee's salary.
Female employees are also entitled to job protection during maternity leave, ensuring they are not dismissed during this period.
Parental Leave: Fathers are entitled to 2 days of paternity leave, which can be taken shortly after the birth of the child. In addition, parents may share parental leave, depending on the company's policies.
6. Termination of Employment
Notice Period: Both employers and employees must provide notice before terminating an employment contract. The required notice period depends on the length of the employee's service:
Less than 1 year: 1 month notice.
1-5 years: 2 months notice.
More than 5 years: 3 months notice.
Dismissal: Employers can dismiss employees for various reasons, including misconduct, redundancy, or business restructuring. However, dismissal cannot be made without just cause.
Employees dismissed without valid cause may be entitled to severance pay.
Severance Pay: Employees with more than 1 year of service are entitled to severance pay upon termination. The severance amount depends on the length of service and ranges from 1 to 24 months of salary.
Resignation: Employees who wish to resign must adhere to the notice period stipulated in their contract or the Labor Code.
7. Social Security and Benefits
Social Security System: Employees and employers must contribute to the social security system (EFKA), which covers pensions, healthcare, unemployment benefits, and work-related injuries. The contribution is based on the employee's gross salary.
Contributions are split between the employer and employee, with the employer contributing a larger percentage.
Pension: The Greek pension system is based on state-run pensions, which are funded by employee and employer contributions. The pension is paid to employees after reaching retirement age, typically 67 years.
Health Insurance: Employees are entitled to health insurance under the social security system, which covers medical costs and hospitalization.
8. Discrimination and Harassment
Non-Discrimination: Greek law prohibits discrimination in the workplace based on gender, race, religion, sexual orientation, disability, or other personal characteristics.
Harassment: Sexual harassment, bullying, or any form of workplace harassment is prohibited. Employees who experience harassment can file complaints with the labor inspectorate or the courts.
9. Labor Unions and Collective Bargaining
Labor Unions: Employees have the right to join labor unions and participate in union activities. Unions play a vital role in advocating for workers' rights, negotiating wages, and representing workers in disputes with employers.
Collective Bargaining: Unions engage in collective bargaining with employers to establish collective agreements that define terms and conditions for wages, working hours, and benefits. These agreements are legally binding for all employees in the sector.
10. Health and Safety
Workplace Safety: Employers are required to provide a safe and healthy working environment, and employees are entitled to work in conditions that protect their health and well-being.
Occupational Health and Safety: Employers must comply with health and safety regulations, conduct regular risk assessments, and ensure that employees have access to safety equipment and training, especially in high-risk industries (e.g., construction, manufacturing).
11. Labor Disputes and Resolution
Labor Disputes: In the event of a dispute between an employee and employer, the parties may attempt to resolve the issue through mediation or conciliation.
Labor Court: If the dispute cannot be resolved informally, the case may be taken to the Labor Court. Employees can file claims related to unfair dismissal, wage disputes, or violations of labor rights.
Conclusion: Employment law in Greece provides comprehensive protections for workers, ensuring fair wages, job security, and healthy working conditions. It also ensures that employers adhere to labor standards, particularly in terms of contracts, working hours, termination, and social security benefits. For more specific issues or complex employment cases, it is advisable to consult with a labor lawyer familiar with Greek labor law.
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