Blue-Collar and White-Collar Workers

According to settled case law, white-collar workers are those who primarily perform mental work, whereas blue-collar workers are those who primarily perform manual work. Traditionally, this distinction was significant in Greek labour law, particularly with respect to the notice period for termination and the calculation of severance pay. However, as of 1 January 2022, this distinction has been abolished for the purposes of termination procedures and severance pay.

Other Statuses

Managerial employees

Within the meaning of law, they are not subject to the labour law provisions concerning the working time limits (eg, daily/weekly rest periods, overwork, overtime, work on Sundays and public holidays, etc) and statutory annual leave entitlements.

Part-time employees

Part-time employment may take the form of daily work with shorter working hours than the full-time schedule, non-daily work with full daily hours, or even non-daily work with shorter daily hours than the full-time schedule.

Seasonal employees

Their employment is directly linked to the seasonal nature of the employer’s operations and typically lasts for the duration of the active season. In seasonally operating hotels (up to nine months per year), the employer must re-employ the same number of employees that were employed on average in the last two seasons, and preferably those who were employed in the last season. Despite the fixed-term nature of their contracts, severance payment is required, in the case of termination (either during the season or off-season).

The employment contract may be concluded either for a fixed term or for an indefinite term. The determination of the contract’s duration is of particular importance in relation to the manner in which it is terminated (see 7.1 Grounds for Termination). A fixed-term employment contract terminates automatically upon the expiry of the agreed duration, without the need for any declaration or other action by either party. In contrast, an indefinite-term contract is typically terminated by a unilateral declaration of intent made by either the employer or the employee and addressed to the other party.

An employment contract does not require written form for its validity, unless the written form is mandated by law (eg, in the case of part-time employment) or has been contractually agreed between the parties.

Employers are required to inform employees of the essential terms of the employment contract or relationship, as specified by law. These include:

• the place of work;
• the employee’s position or job title, grade, category or sector of activity, and a brief description of the work;
• the start date of the employment contract or relationship;
• if the employment is for a fixed term, the end date or expected duration;
• the duration and terms of any agreed probationary period;
• the training provided by the employer, if applicable;
• the duration of annual paid leave, as well as how and when it is granted;
• the procedure to be followed by both employer and employee in the event of termination of the contract or employment relationship – particularly with respect to the obligation of written notice, any notice periods, severance pay entitlements, and whether there is a requirement for a justified reason;
• the remuneration of any kind to which the employee is entitled, including the frequency and method of payment;
• the working hours;
• the Collective Labour Agreement (CLA) that sets out the employee’s minimum pay and working conditions, as well as the signatory parties to such agreement; and
• the social security institutions with which the employee is registered, and any other employer-provided social insurance benefits.

The statutory working time of an employee working full-time in Greece is 40 hours per week, allocated on a five or six-day basis. It has been clarified that when a five-day weekly work system is implemented the full working hours amount to eight hours per day, while when a six-day weekly work system is implemented the full working hours amount to six hours and 40 minutes per day.

Overwork from the 41st to 45th hour (five-day working schedule) and from the 41st to 48th hour (six-day working schedule) is paid with a 20% augment to the paid hourly wage.

Overtime (more than nine hours per day and 45 or 48 hours per week) is as follows.

• Legitimate overtime: up to 150 hours a year (and up to three hours per day). Each hour is paid with a 40% augment to the paid hourly wage; above the 150-hour limit, with prior permission from the competent body of the Ministry of Labour in urgent cases where the execution of certain work is absolutely necessary and cannot be postponed, each hour is paid with a 60% augment to the paid hourly wage.
• Overtime for which the provisions of law have not been followed is paid with a 120% augment to the paid hourly wage (unlawful overtime).

As a rule, the offsetting of extended working hours on one day or week with reduced hours on another day or week is not permitted. Exceptionally, this is allowed if a working time arrangement is agreed upon. In such cases, variations in working hours (between periods of increased and reduced working hours) do not lead to additional payment for overwork and/or overtime, provided the average working time is maintained.

Statutory Minimum Wage

The minimum wage in Greece is set by law and is periodically adjusted by the government.

As of 1 April 2025, the gross statutory minimum salary and wage for full-time employment across the country has been set as follows:

• for white-collar workers – the minimum monthly salary is set at EUR880; and
• for blue-collar workers – the minimum daily wage is set at EUR39.30.

Moreover, it is noted that for those workers who are paid with the statutory wage or salary the period of service – under an employment relationship – which has been spent with any employer and in any speciality before 14 February 2012 and after 1 January 2024 is recognised as seniority.

According to the above, seniority-based salary increments are set as follows:

• for white-collar workers – a 10% increment is granted for every three years of service and up to three three-yearly periods (ie, a maximum of 30% for nine or more years of service); and
• for blue-collar workers – a 5% increment is granted for every three years of service and up to six three-yearly periods (ie, a maximum of 30% for 18 or more years of service).

Statutory Allowances

Mandatory and separate from the base salary are the Christmas allowance (equivalent to up to 25 days’ wages), the Easter allowance (equivalent to up to 15 days’ wages) and the annual leave allowance (equivalent to up to 15 days’ wages).

CLAs

Minimum wages (above the statutory levels) as well additional allowances for various reasons (eg, marriage, family, seniority, unhealthy work, education, qualifications, etc) may also be set by collective labour agreements or arbitration decisions.

Vacations and Vacation Pay

Employees in Greece are entitled to paid annual leave, which accrues based on their length of service:

• for the first (calendar) year of employment – the employee is entitled to two days of paid leave per month of employment (on the basis of a six-day workweek) or 1.66 days paid leave per month of employment (on the basis of a five-day workweek);
• for the second (calendar) year of employment – the employee is entitled to 2.08 days per month of employment (on the basis of a six-day workweek) or 1.75 days per month (on the basis of a five-day workweek);
• for the third (calendar) year of employment or more – (from January 1st of the year) the employee is entitled to 26 days per year (on the basis of a six-day workweek) or 22 days per year (on the basis of a five-day workweek); and
• employees who have completed ten years of service with the same employer or 12 years of total prior service (with any employer and under any type of employment relationship) are entitled to 30 working days of paid annual leave under a six-day workweek system, or 25 working days of paid annual leave under a five-day workweek system.

CLAs may provide for more favourable leave entitlements.

Required Leave

Under Greek labour law, employees are entitled to various statutory paid or unpaid leaves, including the following.

• Maternity leave: 17 weeks total (eight weeks pre-birth, nine weeks post-birth), with full wage subsidised by the Greek social security institution (e-EFKA) and employer top-up.
• Childcare leave, which can be granted either:
1. as reduced working hours (one hour daily for 30 months);
2. upon agreement with the employer, two hours daily for the first 12 months and one hour for the next six months; or
3. upon agreement with the employer, as consecutive leave instead of reduced working hours.
• Special nine-month leave (when applicable). During this leave, the birth mother is entitled to receive statutory remuneration by the Greek Public Employment Service (DYPA).
• Paternity leave: 14 working days, fully paid.
• Parental leave: up to four months per parent, unpaid, for children up to eight years old. Two months are subsidised by the DYPA.
• Sick leave: sick leave is not specifically regulated in Greece. Typically, it is not a leave but a justified absence. The employee is entitled to receive the wages of one month, if they have been employed for one year, or the wages of half a month, if they have been employed more than ten days but for less than a year. The employer is entitled to deduct any amounts paid to the employee by e-EFKA.

Confidentiality and Non-Disparagement Clauses

Confidentiality obligations may be contractually imposed during and after employment. Non-disparagement clauses are not explicitly regulated in Greek law, but may be enforced if included in employment or settlement agreements – provided they are specific, balanced and proportional. Overly broad clauses could be deemed unenforceable under good faith and personal rights doctrines.

Employee Liability and Limitations

Employees are liable for damage caused to the employer through intent. In cases where damage results from negligence during the performance of work duties, Greek courts may limit or even waive employee liability – especially in cases of slight negligence. Courts may apportion liability between the employee and employer, attributing to the employer the share of the loss that corresponds to normal business risk or that is disproportionate to the employee’s benefit from the employment relationship.

During the Course of Employment

An employer may not prohibit an employee from engaging in secondary employment outside their agreed working hours. Any contractual clause to the contrary is considered null and void, and therefore unenforceable, unless the restriction is objectively justified. Such objective justifications may include:

• health and safety concerns;
• the protection of business confidentiality;
• employment with a competitor; or
• the prevention of conflicts of interest.

As a result, although a general contractual ban on parallel employment is not permitted, it is acceptable to include clauses requiring the employee to inform the employer before undertaking any additional employment, especially where the employee has doubts as to whether objective grounds for restriction may apply. In any case:

• working time limits and rest periods must be observed; and
• the employee must not be subject to adverse treatment due to providing services to another employer outside their primary working hours.

Post-Employment Non-Compete Clause

During the employment relationship, the employer’s claim for the employee to refrain from engaging in competitive activity stems from the employee’s ancillary duty of loyalty. However, this duty does not survive the termination or expiry of the employment contract. Therefore, for the period following the end of the employment relationship, a corresponding obligation on the part of the employee must be expressly agreed upon. Greek law does not explicitly regulate post-employment non-compete clauses.

However, Greek case law has developed specific criteria to assess the validity and enforceability of such clauses. If a legitimate business interest is established, courts then evaluate the clause based on transparency and clarity regarding its scope and conditions. The main factors considered include the following.

• Duration of the restriction: the restriction should be time-limited, typically up to 12 months, or in some exceptional cases up to 24 months.
• Geographical scope: the clause should not be overly broad and should be reasonable in its territorial coverage – usually within the Greek territory.
• The scope of activities and types/categories of enterprises considered competitive: the clause should specify which businesses and activities are restricted.
• Financial compensation: a fair consideration must be provided by the employer, usually in connection with the duration of the restriction and the monthly remuneration paid during employment. This compensation may be paid after the restriction period ends, provided the employee complied with the clause. The agreement may also include a penalty clause in case of breach.

Non-solicitation clauses are contractual provisions designed to prevent former employees from approaching or encouraging colleagues or clients to leave the company or transfer their business elsewhere. Their primary purpose is to protect the employer’s workforce stability and business relationships, following the termination of an employment relationship.

These clauses are not explicitly regulated by Greek law. However, Greek case law has developed criteria for assessing their validity. In general, the same conditions that govern post-termination non-compete clauses also apply to non-solicitation clauses. Such clauses must be narrowly tailored and intended to protect the employer’s legitimate interest. The main factors examined by Greek courts include the following.

• Duration of the restriction: the restriction should be time-limited (a period of six to 12 months is usually seen as reasonable).
• Scope of the restriction: the clause should not be overly broad and should apply only to employees or clients with whom the individual had direct professional interaction or was aware of a potential professional relationship. Also, it should not disguise a non-compete clause.
• Nature of the restriction: courts assess whether the clause prohibits active solicitation (which can be restricted) or mere acceptance of employment applications or client requests.
• Proportionality and clarity: the term must be clearly defined and proportionate in relation to the legitimate interest being protected. Often, client lists may be considered part of the employer’s confidential information or business know-how.
• Penalty clauses: may be used to reinforce compliance, provided they are reasonable and proportionate to the breach.

Financial compensation is not required for the non-solicitation obligation to be valid and enforceable.

In the employment sphere, the collection and overall processing of employee data is governed by the General Data Protection Regulation (GDPR) and supplemented by Law 4624/2019. This law outlines specific provisions for processing employee data, including identifying a valid legal basis, handling sensitive data, and ensuring transparency in all data-processing activities.

The Hellenic Data Protection Authority (HDPA) plays a crucial role in issuing decisions and guidelines that further clarify these requirements, ensuring that employers understand their obligations and their rights. Key points from the HDPA decisions and guidelines highlight the need to implement the necessity, proportionality and transparency principles of employee-monitoring practices, and the adoption of clear and detailed policies with a special focus on the implementation of a compliant Acceptable Use Policy where the details of the employer’s right to employee monitoring are delineated.

In addition, emphasis is given to the implementation of robust data security measures, and the respect for data subject rights such as access, rectification and erasure. Employers must also adhere to clear data retention policies, ensuring that employee data is not kept longer than necessary and is disposed of securely when no longer needed. Importantly, consent is generally not considered a valid legal basis for processing employee data due to the inherent power imbalance in employment relationships, making it essential for employers to rely on other legal bases such as legitimate interest or contractual necessity.

Overall, compliance with these regulations is crucial to avoid significant penalties, requiring employers to stay informed about legal developments and HDPA guidance to ensure that they are meeting their legal obligations and protecting employee privacy effectively.

EU Citizens

EU citizens are eligible to live and work in Greece without obtaining a work or residence permit. They can enter Greece with a valid identity card or passport, regardless of the planned duration of their stay.  If the EU citizen intends to stay in Greece for more than 90 days, they must register at the local Department of Aliens of the Hellenic Police.

Third-Country Nationals

For third-country nationals (ie, non-EU citizens) there are quite strict and cumbersome criteria regulating the lawful residence and work of non-EU citizens in Greece. In particular, Greek law provides for a closed number of residence permits that may be issued only for limited and very specific purposes, on the basis of a numerus clausus approach.

EU Citizen Card

If the EU citizen intends to stay in Greece for more than 90 days, they must register at the local Department of Aliens of the Hellenic Police (physical presence is required). Furthermore, the issuance of a Greek Tax Number and a Greek Social Security Number is required for the hiring of the EU citizen (this also applies to all third-country nationals who are employed by a Greek company).

Third-Country Nationals

Law 5038/2023 provides for specific types of residence permit for work purposes. The main ones are the following (please note that all foreign documents should bear apostille stamps, in cases where the country/authority of issuance is a party to the Hague Convention – otherwise, the documents need to be notarised and then certified by the competent Greek Consulate).

Residence permit for the provision of work (metaklisi)

Act of Ministerial Council No 56/2024, as in force, provides for the relevant positions that may be filled by third-country nationals for the provision of work in Greece, for 2025. The relevant position should be both mentioned in the aforementioned Act and vacant. If the relevant position is included in the aforementioned Act and vacant:

• the employer should digitally file an application and the relevant supportive documents to the competent Directorate for Foreign Citizens and Migration of the Decentralised Administration;
• following the filing, a decision by such competent authority is issued, which approves the provision of work to the specific employer; and
• subsequently, the relevant documentation is forwarded to the competent Consulate.

An interview of the third-country national follows, in order for a visa to be issued. Following the issuance of the visa, the third-country national should digitally file the relevant documentation to the competent Directorate for Foreign Citizens and Migration of the Decentralised Administration to be provided with a filing certificate (this stands as a residence and work permit until the issuance of the final residence permit, which is issued following review of the documentation and a biometrics appointment).

Residence permit for high-rank executives

The aforementioned Act also provides for the high-rank positions that may be filled for 2025. A high-rank executive should submit a pre-approval application to the Ministry of Migration and Asylum, along with supportive documents – ie:

• a high-rank employment contract for at least six months, duly signed by the company’s legal representative and providing for annual remuneration of at least EUR32,000;
• official evidence of specialised qualifications (either education degrees in a field similar to the job position (duration of studies of at least three academic years) or employer certificates proving at least five years of experience at a similar position), and an employer’s tax declaration proving at least gross annual revenue of at least EUR60,000 per high-rank employee, etc.

Following the pre-approval, they should visit the competent Consulate for issuance of a visa, and then enter Greece to digitally file a residence permit application – alternatively, they should digitally file a residence permit application with the required supportive documents if they have already been in Greece for less than 90 days.

Intra-Corporate Transfer (ICT)

The third-country national should digitally submit a pre-approval application to the Ministry of Migration and Asylum, along with (inter alia) the following.

• Proof that the third-country business and the business in Greece belong to the same group of companies.
• Certificates from the Chamber of Commerce (Greek and foreign) for the last three months for both companies.
• The statute of the Greek company.
• The employment contract of the employee with the third-country company along with a letter of assignment detailing:
1. the duration of the transfer;
2. the location of the Greek company;
3. the job description;
4. the salary;
5. the working conditions;
6. proof that after the completion of the ICT the employee will move to a company within the same group;
7. proof of employment with the parent company for at least 12 months; and
8. educational degrees in a field similar to the job position (duration of studies of at least three academic years) or proof of five-year work experience at a similar position.

Following the issuance of the pre-approval, the file will be sent to the competent Consulate (based on the employee’s country of residence) and a visa appointment will be scheduled. Following issuance of the visa, an application is filed digitally for the issuance of the ICT permit.

Definition of Remote Work

According to the applicable legal framework, remote work is defined as the provision of work performed remotely using technology, which could otherwise be carried out at the employer’s premises. Remote work may be agreed under a full-time, part-time, rotational or other form of employment.

Remote Work Agreement

Remote work should be mutually agreed between the employer and the employee, either at the time of hiring or by amending the employment agreement. The parties are also free to agree on a hybrid work model. Implementing a remote work policy is common practice in the Greek labour market to cover specific terms of remote working.

In specific cases (eg, protection of public health, employee health issues, parents of children up to 12 years old, and caregivers), remote work may be unilaterally implemented by either the employer’s decision (in the first case) or upon the employee’s request (in other cases).

Cost of Remote Work

The cost of remote work is borne by the employer and must not be lower than the minimum amounts stipulated by the respective ministerial decision per month, as follows:

• EUR13 for the use of the employee’s residence as a workplace;
• EUR10 for telecommunications costs; and
• EUR5 for the maintenance of work equipment.

Nevertheless, the employer has the option to cover telecommunications costs by paying them directly to the service provider and/or providing the employee with the work equipment, thereby avoiding the corresponding monetary compensation. Furthermore, if the employee works remotely for fewer than 22 days in a given month, the compensation is proportionally reduced.

Working Time in Remote Work

Remote work does not affect the employee’s work schedule as declared to the Labour Authority. However, for now, remote workers are excluded from the use of the digital work card, which is being gradually implemented across all sectors of Greek labour market.

Remote workers have the right to disconnect and are not required to engage in work-related communications (eg, emails, phone calls, messages) outside working hours. They are also protected from any form of retaliation for exercising this right.

Health and Safety

The employer is obliged to inform the employee of all applicable company policies and procedures regarding health and safety. Conversely, the employee is required to comply with these procedures and all relevant health and safety legislation. Although the general rule assigns responsibility for employee safety to the employer, in the case of remote work, due to the employer’s limited ability to adequately inspect the workplace, it is presumed that the remote workplace meets the minimum health and safety requirements. A ministerial decision is expected to be published regulating specific health and safety requirements in relation to remote work.

Data Protection

Remote work does not alter data protection obligations. The GDPR, Greek Law 4624/2019 and relevant decisions, guidelines and other acts issued by the Hellenic Data Protection Authority (HDPA) shall apply. Decision No 32/2021, Guidelines No 2/2020 on Measures for Security in the Context of Remote Work, and Guidelines No 1/2021 on the Application of Personal Data Protection Rules in the Context of Remote Work have been issued by the HDPA, providing general guidelines specifically for remote work.

Regarding assessment of employee performance, the use of webcams for this purpose is prohibited.

Social Security Contributions

Remote workers are insured for both main and supplementary pensions in the same manner as employees who work on the employer’s premises, without any differentiation.

Sabbatical leave is not provided for under Greek labour legislation. However, it is recognised in the leave policies of many companies, particularly multinational ones.

Under applicable Greek legislation, unpaid leave of absence for a period of up to one year may be granted by written agreement between the employer and employee. This period of time can be extended by a new agreement between the parties. During this leave, the employment relationship is suspended by law, and the employer is not required to pay social security contributions. The time spent on unpaid leave is considered service time for the purposes of rights and obligations under the employment agreement. Upon the conclusion of the unpaid leave, the employee has the right to return to their last position.

The employer is obligated to submit the mutually signed unpaid leave agreement to the ERGANI information system of the Ministry of Labour, as well as to the public social security institution, e-EFKA.

Law 4808/2021 introduced a dedicated regulatory framework for platform-based work in Greece, aligning with European standards and addressing emerging forms of employment.

Although the platform and the service provider could be connected either by an employment agreement or a services agreement, the contract is presumed to be a services agreement if the services provider cumulatively has the following rights based on the contract:

• the right to use subcontractors or substitutes to provide the services he/she has undertaken to offer;
• the right to choose the various projects that the digital platform proposes for him/her to undertake, or to unilaterally set the maximum number of such projects that he/she will undertake at any given time, which may change, provided that it is always determined unilaterally by him/her;
• the right to be employed or provide services to other platforms, including rivalries of the contracting platform; and
• the right to determine his/her provision of working time of services.

Self-employed service providers have the right to form trade unions, engage in collective bargaining, and conclude sui generis collective agreements. It is worth mentioning that the first collective agreement in Greece’s digital platform sector was recently signed between a leading digital platform and a union of self-employed couriers. This pioneering arrangement may serve as a model for future self-regulatory efforts between platforms and their partners, laying solid foundations for the further institutionalisation of the gig economy in Greece.

Digital platforms – regardless of the nature of the agreement between them and the services providers – have the same health and safety obligations as if they were their personnel.

Trade union freedom – the right to establish and operate trade union organisations for the protection and advancement of workers’ interests – is enshrined in Article 23 of the Greek Constitution. Trade unions serve as the primary institutions for the professional, economic and social protection of their members.

Core Roles of Trade Unions

Trade unions fulfil the following core roles:

• engage in collective bargaining to influence wages, benefits and working conditions;
• negotiate CLAs;
• declare and co-ordinate strikes;
• participate in consultation and information procedures with employers on collective dismissals, business transfers, technological changes, health and safety, and internal work regulations; and
• represent their members in administrative (eg, Labour Inspectorate) and judicial forums.

Establishment of Trade Unions

To establish a trade union, at least 20 employees are required as founding members. These individuals must have completed at least two months of employment within the enterprise, sector or profession, depending on the type of union being formed.

The establishment process includes a judicial review of legality and is finalised with the registration of the union in the General Register of Trade Union Organisations (GEMISOE).

Organisational Structure of Trade Unions

The Greek union system has three levels:

• primary unions (individual employees, enterprise-level, sectoral or occupational);
• secondary organisations (federations and labour centres uniting primary unions); and
• tertiary confederations (national bodies such as GSEE for private-sector employees and ADEDY for public-sector employees).

In addition to trade unions, Greek labour law recognises other collective workers’ representative bodies. They are not as widespread and generally play a supplementary role (especially when a trade union is present), and include the following.

Workers’ Council

Establishment

These are compulsory in enterprises with at least 50 employees (and, in the absence of a trade union, at least 20 employees).

Composition

They consist of three, five or seven members (depending on the size of the enterprise), which are elected every two years. Members enjoy the same protection from dismissal afforded to trade union officials.

Nature

They are participatory and consultative bodies aimed at improving workers’ conditions in conjunction with the enterprise’s development. They can co-decide with the employer on specific matters. They also have information rights and, in the absence of trade unions in the enterprise, consultation rights.

Health and Safety Committees

Establishment

These are compulsory in enterprises with at least 50 employees, and have the right to elect health and safety employee representatives in smaller businesses (depending on the size of the enterprise).

Composition

They consist of two to seven members (depending on the size of the enterprise), which are elected every two years. Members enjoy the same protection from dismissal afforded to trade union officials.

Nature

They are consultative bodies that promote and safeguard the right of employees to health and safety in the enterprise.

Rights

They examine working conditions within the enterprise, propose improving measures, and monitor compliance with health and safety regulations. Finally, they have information rights.

European Works Councils

They aim to ensure the effective exercise of employees’ rights to information and consultation in EU-scale companies or groups of undertakings. They hold the right to information and consultation (but not co-decision-making), with the company or group.

CLAs traditionally regulate the employment relationship between employers and employees under subordinate employment contracts. Although the possibility for economically subordinate self-employed workers to conclude CLAs was introduced in the 1990s, no such CLA has been concluded to date. More recently, Law 4808/2021, which governs platform-based work, explicitly provided for freelancers in the gig economy to conclude collective agreements. A landmark development was the 2025 collective agreement between Wolt and the Union of Self-Employed Delivery Workers of Thessaloniki – the first of its kind to cover digital platform delivery workers in Greece.

Types of CLAs

Depending on their scope and the level at which they are concluded, these include the following.

Enterprise-level CLAs

These are agreements negotiated within a single company and apply to all its employees, regardless of role or position. These agreements are typically negotiated between the employer and enterprise trade unions and are tailored to reflect the company’s financial and operational realities.

Occupational CLAs

These apply to employees in the same profession, regardless of which company employs them. These agreements promote professional solidarity and aim to protect the shared interests of workers with similar qualifications. Depending on the agreement, their territorial scope can be national, regional or local.

Sectoral CLAs

These cover employees working in similar or related industries and may also apply nationally or regionally. These agreements are often multi-occupational and play a key role in shaping collective labour standards while supporting broader economic stability.

National General Collective Labour Agreement (NGCLA)

This applies across the country to all employees in terms of non-wage working conditions. In terms of wages, however, it only binds employers who are members of the employer associations that signed the agreement (for all others, the statutory minimum wage applies). The NGCLA sets general standards and acts as a reference point for preserving social cohesion and minimum working conditions nationwide.

Binding Effect and Extension Mechanism

Occupational and sectoral CLAs bind only those employers and employees who are members of the signatory organisations. However, under certain circumstances, the Minister of Labour and Social Affairs has the authority to declare such agreements generally binding. In that case, the CLA applies universally within the relevant sector or profession – even to non-members. The CLAs in the hospitality and food service sectors are among those most commonly declared universally binding by ministerial decision.

Duration, Expiry and Metenergeia (After-Effect Period)

CLAs usually have a duration of one to three years and expire either after the agreed period or termination. When a CLA expires, its regulatory provisions (ie, those affecting employment conditions) continue to apply for a grace period of three months – or six months in the case of the NGCLA. After this period, certain core terms remain in force under the doctrine of metenergeia. These include the basic salary or daily wage, as well as allowances for seniority, children, education and hazardous work – provided they were part of the previous agreement. All other terms cease to apply.

Negotiation and Dispute Resolution

CLAs are the result of collective bargaining between employer and employee representatives. If negotiations break down, employees may resort to strikes. Both parties also have the option of engaging in mediation, and, if necessary, arbitration. In specific cases, legislation allows for unilateral recourse to arbitration to resolve deadlocks in essential sectors.

The termination of an employment relationship in Greece differs in the case of a fixed-term agreement and in the case of an agreement of indefinite duration.

Termination of a Fixed-Term Employment Contract

A fixed-term employment contract is terminated de facto once the agreed time lapses and no payment of a termination indemnity is required. In addition, a fixed-term contract may also be terminated before the agreed time lapses for a serious cause (see 7.3 Dismissal for (Serious) Cause). In such case, severance pay is also not required. However, if the employer terminates the contract early without a serious cause, the employee is entitled to claim the full salary payments they would have received for the entire duration originally agreed upon.

Termination of an Employment Contract of Indefinite Duration

The termination of an employment contract of indefinite duration is a unilateral, non-causative (ie, the employer is not required to indicate the reasons justifying the dismissal) legal act, except for those cases stipulated otherwise by law (see 7.5 Protected Categories of Employee).

Furthermore, the termination of an employment agreement of indefinite duration is valid only if it is made in writing and upon simultaneous payment of the exact amount of the statutory (and of the contractual, if any) severance pay (see 7.2 Notice Periods). The only case where the employer is not obliged to pay the statutory severance pay is when the employee has committed a criminal offence and the employer has filed criminal charges against the employee before termination.

Collective Redundancies

Employers intending to implement collective dismissals must engage in prior consultation with employee representatives and notify the Ministry of Labour. This applies when, within a 30-day period, an employer intends to dismiss:

• more than six employees in undertakings employing 20–150 employees; or
• more than 5% of the workforce, and at least 30 employees, in undertakings employing more than 150 employees.

The employer must present the reasons, consider alternatives and explore mitigation measures. The process is supervised by the Supreme Labour Council (SLC) and cannot be finalised without completion of the mandatory procedures.

Dismissal Formalities

To terminate an employment agreement of indefinite duration, the employer must log into the ERGANI digital platform using their username and password, complete the electronic termination form (“document E6”), print it and have it signed by the legally authorised representative on behalf of the employer. For expiry or early termination of a fixed-term employment contract, the respective form (“document E7”) is used.

The termination document is handed to the employee and signed by them, and is then submitted to the ERGANI platform within four days of the termination date.

If the employee refuses to sign it, the termination document must be served by a bailiff.

On the termination date of an indefinite-term contract, the employer must deposit the statutory severance pay into the dismissed employee’s bank account.

Calculation of the Severance Payment

Statutory severance payment is calculated based on the employee’s last (before the termination) monthly salary (annualised) and their years of service with the same employer.

The monthly salary is multiplied by 14 and divided by 12 (to include the Christmas and Easter allowances as well as the annual leave allowance). Regular fringe benefits (such as car allowance, housing allowance, mobile phone and insurance coverage, etc) are included if they are granted regularly and without any disclaimer by the employer about their voluntary nature. However, the monthly salary used for the calculation is capped at the equivalent of eight times the daily wage of an unskilled worker (currently EUR39.30), multiplied by 30 days (currently EUR9,432).

Based on the above, the statutory severance payments are calculated as follows (years rounded up and all monthly salaries annualised), for years of service and the applicable severance payment as follows.

• One year to four years: two months’ salary.
• Four years to six years: three months’ salary.
• Six years to eight years: four months’ salary.
• Eight years to ten years: five months’ salary.
• Ten years: six months’ salary.
• 11 years: seven months’ salary.
• 12 years: eight months’ salary.
• 13 years: nine months’ salary.
• 14 years: ten months’ salary.
• 15 years: 11 months’ salary.
• 16 years or more: 12 months’ salary.

Employees who on 12 November 2012 had completed 17 or more years of service with the same employer are entitled to an additional severance payment. This is calculated as one (annualised) monthly salary for each completed year of service on that date, up to a maximum of 12 months. For the purpose of this additional severance, the monthly salary is capped at EUR2,000.

Notice Period

The length of the notice period depends on the employee’s service, for years of service at the same company and the applicable notice period as follows.

• One (completed) to two: one month.
• Two (completed) to five: two months.
• Five (completed) to ten: three months.
• Ten (completed) and more: four months.

The employer is not obliged to observe the notice period. However, if the employer opts for termination with prior notice, the statutory severance pay is reduced by 50%.

The notice period that the employee must give when resigning is half the length of the notice period required from the employer, as outlined above.

Garden Leave

Upon giving notice of termination, the employer may unilaterally release the employee from the obligation to perform work, either fully or partially, for the duration of the notice period (garden leave). In such case, the employer remains obliged to pay the employee’s full salary until the expiry of the notice period, without being considered in default for not utilising the employee’s services during that time. Furthermore, the law expressly permits the employee to engage in employment with another employer during this period. This does not affect the validity of the termination nor the employee’s entitlement to statutory severance pay.

In Greece, the employer is not required to indicate the reasons justifying the dismissal. Of course, in the case of litigation a reason has to be presented before the court (see 8.1 Wrongful Dismissal).

If a serious cause is required for the termination (eg, termination of a fixed-term agreement, if the invocation of serious cause is mutually agreed or in the case of protected categories of employees), it can be personal (eg, the employee’s poor performance or negligence, breach of contractual obligation, erosion of confidence towards the employee) or economic/technical (eg, restructuring/downsizing due to economic reasons).

The employer may agree with the employee on the mutual termination of the employment agreement, including the employee’s waiver of any right to challenge the validity of the termination, and settlement of any claim of any kind arising from the employment agreement. In practice, the successful termination agreement requires the payment of enhanced severance payment. Although this option may seem more costly, this is by far the safest, easiest and fastest way (and in the end possibly the least costly), considering the elimination of the litigation risk for an employer having to drastically reduce its workforce.

Maternity and Paternity Protection

Dismissal is prohibited during pregnancy and for 18 months after childbirth, during pregnancy or childbirth-related illness, and for fathers for six months after the child’s birth, unless a serious cause exists.

Employee Representatives

Specific categories of employee representatives benefit from special protection regarding dismissal during their tenure and for one year afterwards.

Employees Hired by Virtue of Mandatory Legal Provisions

Companies of more than 50 employees may be required by State order to hire people with disabilities who have limited access to employment due to lifelong health problems and other categories (such as children of victims of war or the children of members of the National Resistance). Employment agreements governed by these legal provisions are terminated only following a decision of the National Unemployment Authority or following an application filed by the employer to the relevant State Committee on the grounds of the employee’s serious misconduct. The Committee will then render a mandatory decision ratifying or rejecting such demand for permission to terminate the employment agreement.

The grounds for nullity of the termination of an employment contract of indefinite duration, as codified in the law, are as follows:

• discrimination based on gender, race, skin colour, political ideology, religious or philosophical beliefs, ancestral or national origin, sexual orientation, age, gender identity or characteristics, disability, or participation in a trade union;
• reaction to the lawful exercise of employee rights;
• reaction to a lawful complaint made by the employee;
• reaction to the exercise of employee rights in cases involving violence or harassment in the workplace;
• pregnancy or recent childbirth (or if the employee is the father of a newborn), unless there is a serious cause for dismissal;
• reaction to the employee’s request for family leave or a flexible working arrangement for childcare purposes, including remote work;
• during paid annual leave;
• obligatory employment under Law 2643/1998;
• during military service;
• failure to comply with legal provisions on collective dismissals;
• dismissal of a protected unionist, unless there is a serious reason;
• dismissal due to lawful trade union activity;
• dismissal resulting from the employee’s refusal to accept the employer’s proposal for part-time work or job rotation;
• collective refusal by employees of a working time arrangement, provided this refusal does not violate good faith; and
• dismissal due to the employee’s exercise of the right to disconnect in the case of remote work.

According to settled case law, dismissal is a last resort (ultima ratio) and lawful only if no less harsh alternatives (eg, warning, reassignment) are available. The employer must prove that all milder measures were exhausted. Choosing termination when milder, equally effective options exist may be seen as an abuse of rights.

Wrongful Dismissal Based on One of the Grounds for Nullity Stipulated by Law

The dismissed employee may initiate legal proceedings (file a lawsuit) within three months of their dismissal seeking:

• a judicial declaration that the dismissal is invalid;
• payment of outstanding wages (plus statutory interest accrued from the date of termination);
• compensation for moral damages; and
• potentially, reinstatement.

If the dismissed employee presents facts that reasonably indicate that the dismissal was based on one of the prohibited grounds set out by law, the burden of proof shifts to the employer. The employer must then demonstrate that the termination was not due to the alleged unlawful grounds, but was based on a legitimate reason (eg, poor job performance, misconduct, breach of trust, reorganisation, etc).

If the court finds that the alleged ground for nullity of the dismissal is substantiated, it will:

• uphold the employee’s claim;
• declare the dismissal null and void;
• order the payment of outstanding wages and, potentially, compensation for moral damages; and
• require the employer to reinstate the employee.

Wrongful Dismissal for Reasons Other Than Those Stipulated by Law

If the court finds that the dismissal is wrongful for reasons not related to the specific grounds of nullity set by law (eg, in cases of abusive termination due to failure to exhaust milder measures before termination), then, rather than applying any other consequence, the court may, upon request by either the employer or the employee, award the employee an additional severance pay. This additional amount may not be less than three months’ regular salary nor may it exceed twice the amount of statutory severance pay.

Under the applicable legal framework, any direct or indirect discrimination in the workplace on the grounds of race, colour, national or ethnic origin, ancestry, religious or other beliefs, disability or chronic illness, age, family or social status, sexual orientation, gender identity or gender characteristics is strictly prohibited.

Any person who suffers discrimination may file a complaint through the company’s internal policy against violence and harassment (applicable to companies with more than 20 employees), or directly to the Labour Inspectorate or the ombudsman. Alternatively, they may file a lawsuit before the competent court.

Dismissal due to discrimination for one of the aforementioned reasons is null and void. The dismissed employee may choose to either:

• request reinstatement to their position and claim back-pay (wages) from the time of dismissal until the court’s decision; or
• seek additional severance compensation, along with legal interest, moral damages and reimbursement of legal expenses.

There has been no progress in the digitalisation of employment disputes before the court or Labour Inspectorate, as hearings remain in person and require legal representation.

However, the introduction of the digital work card, which records employees’ start and end times in real-time to the Ministry of Labour’s database, marks a major step in Greece’s labour market digitalisation. Aimed at combating undeclared work, it is gradually expanding across all sectors.

The digital work card also enhances evidence in labour disputes. Employers must retain records for at least ten years, while employees can access their own data. Claims on working hours are subject to a five-year limitation, making these records key proof in such disputes.

Greek courts handle employment-related disputes and issues. In courts, parties must be represented by lawyers.

Furthermore, the Labour Inspectorate is an administrative body responsible for monitoring compliance with labour laws, investigating complaints and imposing sanctions for violations.

For collective labour disputes, the Organisation for Mediation and Arbitration (OMED) provides mediation and arbitration services to resolve conflicts between employers and employees or trade unions.

Individual Labour Disputes

These refer to disputes between an individual employee and their employer. Arbitration is generally not common or preferred for resolving individual employment disputes in Greece. Mediation may apply to employment disputes. Prior to initiating court proceedings, the legal representative (attorney) must inform their client in writing about the possibility of resolving the dispute or part of it through mediation.

Collective Labour Disputes

These involve employers and collective bodies (eg, trade unions) and concern broader employment terms such as wages, working time or collective agreements. Arbitration is formally recognised and regulated for collective disputes via the OMED. Arbitration may be initiated:

• by mutual consent of both parties; or
• unilaterally, in limited cases, if mediation fails and the dispute affects public interest.

The arbitration decision is binding for the parties and has the same legal effect as a collective labour agreement.

Conciliation

This is a voluntary process aimed at resolving an individual or collective labour dispute through facilitated dialogue. It is typically carried out as follows:

• for individual disputes – before the Labour Inspectorate (SEPE); and
• for collective disputes – via the Ministry of Labour or OMED.

In the vast majority of cases, Greek courts award the prevailing party a reasonable amount of legal costs, which is often significantly lower than the expenses actually incurred, including attorney’s fees. Courts frequently order that legal costs be set off between the parties when they find that the interpretation of the relevant legal provisions was particularly complex or unclear. The final amount awarded is ultimately at the discretion of the court.