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). Nevertheless, pursuant to recent legislative amendments introduced by Law 5316/2026, executive employees are expressly entitled to statutory annual leave.
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 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.
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, working hours may be increased and correspondingly reduced within an agreed reference period, without the additional hours worked during the period of increased employment being treated as overwork and/or overtime.
Statutory Minimum Wage
The minimum wage in Greece is set by law and is periodically adjusted by the government. As of 1 April 2026, the gross statutory minimum salary and wage for full-time employment across the country has been set as follows:
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:
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, including executive employees, in Greece are entitled to paid annual leave, which accrues based on their length of service:
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.
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. As of 1 November 2026, however, confidentiality clauses preventing employees from disclosing pay information for the purpose of enforcing equal pay are unenforceable under Law 5316/2026. In any event, 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:
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:
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.
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.
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.
Furthermore, the use of artificial intelligence (AI) systems in the employment context requires compliance with Regulation (EU) 2024/1689 (the “AI Act”), the GDPR and national legislation. Under the AI Act, AI systems used in the field of employment – such as in recruitment, candidate and employee evaluation, promotions or termination of employment, task allocation and employee performance monitoring – are characterised as high-risk, imposing strict obligations concerning transparency, human oversight, risk assessment and documentation.
Article 9 of Greek Law 4961/2022 provides that employers who utilise AI systems in the areas of recruitment, evaluation, promotion or termination are required to inform employees or candidates about the use of such systems in a clear, comprehensible and easily accessible manner, disclosing the nature and purpose of the system, the data used and the criteria upon which decisions are based. In all instances where AI is used, it must be ensured that the employee retains the right to request human review of decisions made exclusively or primarily through automated processing, in alignment with Article 22 of the GDPR. Employers are therefore obligated to integrate the use of AI systems into their data protection policies and internal procedures, to conduct Data Protection Impact Assessments (DPIAs) where required, and to ensure that automated decision-making is subject to adequate human oversight, respecting the fundamental rights of employees and the principles of proportionality, transparency and non-discrimination.
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), Greek law applies particularly strict criteria governing lawful residence and work, based on a numerus clausus approach that limits residence permits to very specific purposes. Law 5275/2026 introduced targeted amendments modernising the recruitment procedure, reinforcing the single permit regime, and introducing special regimes for large-scale projects and strategic investments.
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, as amended by Law 5275/2026, 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)
An annual Act of the Ministerial Council establishes the maximum number of positions that may be filled by third-country nationals, which may now be increased by up to 15% (previously 10%) to cover unforeseen and urgent needs. The relevant position should be both mentioned in the Act and vacant. If so:
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/EU Blue Card
The aforementioned Act also provides for the high-rank positions that may be filled. A high-rank executive should submit a pre-approval application to the Ministry of Migration and Asylum, along with supportive documents.
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.
The EU Blue Card is now valid for three years (increased from two), with the possibility of renewal for an additional three years.
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:
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.
New National Entry Visas: Tech Visa and Talent Visa
Law 5275/2026 introduces two new categories of national entry visa: the Tech Visa, for third-country nationals employed by companies registered in the National Registry of Start-up Enterprises (“Elevate Greece”), and the Talent Visa, for third-country nationals with high educational qualifications (Master’s, PhD, Postdoctoral) seeking employment or professional activity in Greece. Both may be converted into an EU Blue Card if the eligibility requirements are met.
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:
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 the 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 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 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:
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.
A special scientific committee has been established at the Ministry of Labour, tasked with preparing a draft law to transpose Directive (EU) 2024/2831 of the European Parliament and of the Council of 23 October 2024 on improving working conditions in platform work.
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:
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:
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
Employees are entitled to elect and establish a Workers’ Council in enterprises with at least 50 employees or, where there is no trade union in the enterprise, with 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
Employees in enterprises with more than 50 employees are entitled to establish a Health and Safety Committee. In enterprises with 20 or more employees, employees are entitled to select representatives with specific competence in health and safety matters, while in enterprises with fewer than 20 employees they may consult among themselves and select one health and safety representative by majority.
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, this possibility remained unused in practice for many years. 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. Recent legislative developments seek to reinforce the extension mechanism of CLAs, with a view to expanding their scope of application more broadly.
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 on 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, all regulatory terms remain in force under the doctrine of metenergeia, until they are amended by a new collective or individual agreement.
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:
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, the employer must log into the ERGANI II digital platform and complete the respective electronic termination form. Once signed by both parties, the form must be submitted to the ERGANI II 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 EUR41.09), multiplied by 30 days (currently EUR9,861.60).
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.
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.
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. 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:
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:
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:
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:
The anti-discrimination framework has recently been strengthened in the field of equal pay. The Pay Transparency Law (Law 5316/2026) introduces the following key elements.
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:
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:
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.
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In Greece, labour law continues to evolve in response to the changing needs of the labour market, social developments and the ongoing harmonisation of national legislation with European Union (EU) law. Recent legislative initiatives reflect a broader policy objective of promoting fair and transparent working conditions, strengthening social dialogue and collective bargaining, and ensuring equal treatment in employment, while enhancing legal certainty and maintaining a flexible and competitive labour market.
Against this background, three recent legislative developments have stood out:
The following sections examine the principal features of these legislative reforms and their expected impact on employers, employees and the Greek labour market more broadly.
Law 5316/2026 (Transposition of the Pay Transparency Directive): a Shift From Equal Pay Protection to Proactive Compliance
One of the most significant developments in Greek employment law during the past year was the adoption of Law 5316/2026, which transposes Directive (EU) 2023/970 on pay transparency and equal pay between women and men for equal work or work of equal value. While the principle of equal pay has long been recognised under Greek law, the new legislation fundamentally changes the way compliance is monitored and enforced. Rather than relying primarily on individual discrimination claims, the new legal framework introduces preventative transparency obligations designed to identify and eliminate unjustified pay disparities before disputes arise.
The new legislation significantly expands employers' compliance obligations by requiring remuneration systems to be based on objective, transparent and gender-neutral criteria. Employers will therefore increasingly be required to establish documented remuneration systems capable of demonstrating that differences in pay are objectively justified. Additionally, the legislation confirms that pay comparisons are not confined to employees performing the same role but extend to work of equal value, assessed by reference to objective criteria such as skills, responsibility, effort and working conditions. In practice, employers will therefore need to demonstrate that any differences in remuneration are justified by these objective criteria rather than by differences in job titles alone.
Another notable innovation concerns transparency during the recruitment process. For the first time, employers are required to provide candidates with information regarding the initial salary or salary range applicable to the position, before the employment relationship is established. At the same time, employers are prohibited from requesting information concerning applicants’ pay history, thereby seeking to prevent historical pay inequalities from being perpetuated throughout an employee’s career. The legislation also requires employers to use gender-neutral job advertisements and recruitment procedures, thereby embedding the principle of equal treatment from the earliest stage of the employment relationship.
The law also considerably strengthens employees’ access to information. Employees are entitled to request information concerning their own remuneration as well as average pay levels, broken down by gender, for employees performing the same work or work of equal value. In parallel, contractual provisions preventing employees from discussing their remuneration are no longer permissible, reflecting the legislature’s intention to facilitate the identification of potential pay discrimination through greater openness regarding pay practices.
Beyond individual information rights, the legislation introduces extensive reporting obligations for medium-sized and large employers/companies. In particular, companies employing at least 100 employees must provide the following data.
The submission of the above data for the previous calendar year of each company shall take place as follows:
However, employers with fewer than 100 employees may provide the above information on a voluntary basis, in accordance with the deadline applicable to companies employing 100–149 employees.
Furthermore, the reporting obligation is directly linked to a compliance mechanism. Where the reported data reveals an unjustified gender pay gap of at least 5% affecting employees performing the same work or work of equal value, and the disparity is not remedied within six months, employers become subject to a joint pay assessment process involving employee representatives (and the Labour Inspectorate as well as the Greek Ombudsman, upon request) and the adoption of corrective measures within one year. The new legal framework therefore moves beyond traditional anti-discrimination litigation by requiring employers to monitor, assess and – where necessary – actively correct pay inequalities through an ongoing compliance process.
The effectiveness of the new legal framework is further strengthened through enhanced enforcement mechanisms. Employees benefit from broader judicial protection, most notably through rules on the burden of proof. Once an employee establishes facts capable of giving rise to a presumption of pay discrimination, the employer bears the burden of demonstrating that no breach of the principle of equal pay has occurred. The legislation strengthens this position where employers have failed to comply with their pay transparency obligations, making procedural compliance an important element of litigation risk management. The legislation also provides enhanced protection against retaliation by rendering dismissals connected with the exercise of rights under the pay transparency framework as null and void, thereby encouraging employees to invoke the new rights without fear of adverse consequences. The Labour Inspectorate is entrusted with expanded supervisory powers, including specialised oversight of equal pay compliance, while the Greek Ombudsman assumes an enhanced role in monitoring implementation and supporting employees in the exercise of their rights.
Overall, Law 5316/2026 represents one of the most significant developments in Greek employment law in recent years. Its significance lies not merely in strengthening the existing principle of equal pay but in fundamentally changing the regulatory approach. Equal pay is no longer addressed solely as an individual anti-discrimination right enforced through litigation after a violation has occurred. Instead, the legislation establishes a comprehensive compliance framework based on transparency, documentation, reporting obligations and proactive monitoring, requiring employers to systematically review and justify their remuneration practices, while promoting greater accountability and pay equity across the labour market.
Law 5278/2026 (National Social Agreement for the Promotion of Collective Labour Agreements): Revitalising Collective Bargaining Through Social Dialogue
Law 5278/2026 marks a significant development in the evolution of Greek collective labour law. Rather than focusing on individual employment rights, the legislation seeks to strengthen the institutional legal framework governing collective bargaining through the implementation of the National Social Agreement concluded between the Ministry of Labour and all national social partners following an extensive tripartite consultation process. The legislation also reflects Greece’s broader commitment to increasing collective bargaining coverage, consistent with the policy objectives underpinning Directive (EU) 2022/2041 on adequate minimum wages.
The reform is particularly significant in light of the decline in collective bargaining coverage experienced during the financial adjustment period. Rather than fundamentally redesigning the system of collective labour law, the legislation seeks to create more favourable institutional conditions for the conclusion, extension and effective implementation of collective labour agreements.
A central feature of the new framework concerns the extension of sectoral and occupational collective labour agreements. The legislation lowers the representativeness threshold required for the extension of a collective agreement from 50% to 40% of the employees in the relevant sector or occupation. In addition to lowering the representativeness threshold, the legislation establishes a new mechanism allowing certain collective agreements co-signed by the General Confederation of Greek Workers (GSEE) and national social partners to be extended without requiring the statutory coverage threshold to be met. Together, these changes are expected to facilitate the wider application of collective agreements and contribute to a gradual increase in collective bargaining coverage across the Greek labour market.
Another important amendment concerns the post-expiry effect of collective labour agreements. Law 5278/2026 abolishes the limited post-expiry regime introduced during the financial adjustment period and restores the full continuation of the normative terms of expired collective agreements. Accordingly, following the expiry of a collective agreement and the statutory three-month extension period, all of its normative provisions continue to apply until they are replaced by a new collective agreement or modified by an individual employment agreement, to the extent permitted by law. From a practical perspective, the amendment provides greater predictability for both employers and employees by preserving collectively agreed employment terms, while negotiations for a successor agreement remain ongoing.
In parallel, Law 5278/2026 simplifies several procedural aspects of collective bargaining. Registration requirements for trade unions and employers’ organisations have been streamlined, reducing the administrative formalities associated with participation in collective bargaining procedures, while maintaining the operation of the relevant registries. The legislation also introduces procedural reforms within the Organisation for Mediation and Arbitration (OMED), including the establishment of an admissibility review committee for unilateral requests for mediation and arbitration, and the abolition of second-instance arbitration. These measures are intended to accelerate the resolution of collective labour disputes while preserving judicial review of arbitral decisions.
Overall, these reforms signal a renewed emphasis on collective bargaining as a central mechanism for regulating employment conditions in Greece. Rather than altering the substantive rules governing collective labour relations, the legislation seeks to create more favourable institutional conditions for the conclusion, extension and effective implementation of collective agreements. In doing so, Law 5278/2026 represents a notable shift towards reinforcing social dialogue as a key component of the Greek employment law framework.
Law 5239/2025 (Fair Work for All): Modernising Employment Administration Through Greater Flexibility and Streamlined Compliance
Law 5239/2025, entitled Fair Work for All, continues the gradual modernisation of the Greek employment law framework through a series of targeted amendments aimed primarily at simplifying compliance procedures and reducing administrative burdens for employers. Rather than introducing a comprehensive reform of individual employment law, the legislation refines several aspects of the existing framework established by Laws 4808/2021 and 5053/2023, seeking to balance operational flexibility with the protection of employees’ rights. The amendments focus on streamlining internal procedures, facilitating working time arrangements and further digitalising employment administration.
One of the key practical changes concerns employers’ internal compliance obligations. The legislation permits the consolidation of the policy on violence and harassment at work with the internal complaints procedure into a single policy document. Under the previous framework, employers were required to maintain separate policies governing closely related procedures, resulting in unnecessary duplication and increased administrative complexity. The new approach enables employers to establish a unified internal framework, addressing both prevention and complaint-handling mechanisms, while preserving the substantive safeguards introduced by Law 4808/2021. The amendment reflects a broader legislative trend towards simplifying compliance obligations without reducing the level of employee protection.
Law 5239/2025 also introduces targeted amendments to the organisation of working time by simplifying procedures that had generated unnecessary administrative burdens. One notable change concerns working time arrangements, where the legislation streamlines the process of implementing flexible working schedules at the employee’s request, reducing procedural requirements while preserving the voluntary nature of such arrangements.
In addition, the law amends the rules governing the division of annual leave, allowing it to be split into multiple periods without the procedural formalities previously required in certain cases. The amendments do not expand or restrict employees’ substantive rights. Rather, they simplify the procedures through which those rights may be exercised, reflecting the legislature’s broader objective of reducing administrative complexity in the day-to-day management of employment relationships.
A further objective of Law 5239/2025 is the continued digitalisation of employment administration through the ERGANI II Information System. Several procedural requirements relating to recruitment, voluntary resignation, employment records and employee declarations have been simplified or integrated into digital processes, further reducing paperwork and facilitating day-to-day compliance. These amendments continue the broader digital transformation of Greek labour administration observed in recent years, with ERGANI II increasingly functioning as the central platform for managing employment relationships and regulatory reporting.
Another noteworthy amendment concerns the operation of the Digital Work Card System. Law 5239/2025 introduces a statutory framework for flexible arrival of up to 120 minutes without affecting the employee’s declared working schedule. In parallel, the legislation formally permits up to three single clock-in entries per month, codifying a practice that had previously been recognised only through administrative circulars. By providing an explicit legislative basis for both arrangements, the new legal framework enhances legal certainty for employers in managing minor deviations from scheduled working hours, while preserving the reliability and monitoring function of the Digital Work Card System.
Overall, Law 5239/2025 does not seek to reshape the substantive rights and obligations governing employment relationships. Instead, it represents a further step towards a more efficient and digitally driven regulatory framework, reducing unnecessary procedural complexity, while supporting greater flexibility and legal certainty in the application of Greek employment law.
Conclusion
The legislative developments examined above illustrate the continued evolution of Greek employment law towards a more transparent, modern and balanced regulatory framework. While each reform addresses a different aspect of labour relations, together they reflect a coherent legislative approach that combines stronger employee protection with greater legal certainty and more efficient regulatory compliance for employers.
The transposition of the Pay Transparency Directive introduces a preventative compliance model centred on transparency, accountability and equal pay. At the same time, Law 5239/2025 demonstrates the legislature’s intention to simplify employment administration by reducing procedural complexity and further advancing the digitalisation of employment-related processes. Finally, Law 5278/2026 signals a renewed emphasis on collective bargaining and social dialogue through measures designed to facilitate the conclusion and wider application of collective labour agreements.
Taken together, these reforms suggest that the current direction of Greek employment law is no longer characterised solely by the introduction of new rights or obligations. Instead, the focus has shifted towards improving the effectiveness of the existing legal framework through greater transparency, streamlined compliance procedures and stronger collective labour institutions. As the Greek labour market continues to evolve, employers will increasingly need to combine legal compliance with effective internal governance, transparent employment practices and constructive engagement with collective labour institutions in order to respond successfully to an increasingly sophisticated regulatory environment.
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