Greece, with its rich cultural heritage and vibrant economy, offers a unique working environment shaped by its labor laws and employee rights. Whether you’re an expat planning to work in Greece, a business owner hiring Greek employees, or simply curious about the country’s employment framework, understanding labor laws is essential. These laws govern everything from working hours and wages to leave entitlements and workplace safety.
In this comprehensive guide, we’ll explore the key aspects of labor laws and employee rights in Greece, helping you navigate the complexities of the Greek labor market.
1. Employment Contracts in Greece
Greek labor law requires that all employment relationships be formalized through a written contract. There are several types of contracts:
a. Indefinite (Permanent) Contracts
- These are open-ended agreements without a specific end date.
- They provide the highest level of job security and are common for full-time positions.
b. Fixed-Term Contracts
- Used for temporary or seasonal work, these contracts specify a start and end date.
- The maximum duration is typically 24 months, after which the contract may convert to permanent if extended further.
c. Part-Time Contracts
- For employees working fewer hours than the standard full-time schedule.
- Part-time workers are entitled to proportional benefits based on their working hours.
d. Freelance or Self-Employment Contracts
- Common for independent contractors or professionals offering specialized services.
- Freelancers are responsible for their own taxes and social security contributions.
2. Working Hours and Overtime
Standard Working Hours
- The standard workweek in Greece is 40 hours, typically spread over five days (8 hours per day).
- Employees are entitled to at least one rest day per week, usually Sunday.
Overtime
- Overtime is regulated and must be compensated at higher rates:
- Up to 120 hours of overtime annually: Paid at 120% of the regular hourly wage.
- Beyond 120 hours: Paid at 150% of the regular hourly wage.
- Employers cannot force employees to work excessive overtime without consent.
3. Minimum Wage in Greece
As of 2023, Greece has established a minimum wage to ensure fair compensation for workers:
- Unskilled Workers : €780 per month (gross).
- Workers Aged Under 25 : A reduced rate applies for those under 25 years old, currently set at €688 per month (gross).
The minimum wage is reviewed periodically and may increase based on economic conditions and collective bargaining agreements.
4. Leave Entitlements
Greek labor law provides generous leave entitlements to ensure work-life balance and employee well-being.
a. Annual Leave
- Full-time employees are entitled to 20-25 working days of paid vacation per year, depending on their length of service.
- Unused vacation days cannot be carried over to the next year.
b. Public Holidays
- Greece observes 12 national public holidays annually, during which employees are entitled to paid leave.
c. Maternity and Paternity Leave
- Maternity Leave : Female employees receive 17 weeks of fully paid leave , with an additional two weeks available under certain conditions.
- Paternity Leave : Fathers are entitled to 14 days of paid leave following the birth or adoption of a child.
d. Sick Leave
- Employees are entitled to sick leave with pay, funded by Social Security (IKA). The duration and compensation depend on the severity of the illness and length of service.
e. Parental Leave
- Both parents can take up to 4 months of unpaid parental leave until the child reaches 6 years of age.
5. Workplace Safety and Health Regulations
Greek labor laws prioritize workplace safety and health, aligning with European Union standards:
- Employers must provide a safe working environment and necessary protective equipment.
- Regular inspections are conducted by the Labour Inspectorate to ensure compliance.
- Employees have the right to refuse unsafe work without fear of retaliation.
6. Termination and Severance Pay
Terminating an employment contract in Greece is subject to strict regulations to protect workers’ rights.
a. Notice Period
- The notice period depends on the length of service:
- Less than 1 year: 1 month.
- 1–5 years: 2 months.
- Over 5 years: 3 months.
b. Severance Pay
- Employees dismissed without just cause are entitled to severance pay, calculated based on their length of service:
- Up to 1 year: 2 months’ salary.
- 1–4 years: 3 months’ salary.
- 4–8 years: 4 months’ salary.
- Over 8 years: 5 months’ salary.
c. Unfair Dismissal
- If an employee believes they were unfairly dismissed, they can file a claim with the Labour Inspectorate or seek legal recourse.
7. Social Security Contributions
Both employers and employees contribute to Greece’s Social Security system (IKA), which provides benefits such as pensions, healthcare, and unemployment insurance.
- Employee Contribution : Approximately 13.33% of gross salary.
- Employer Contribution : Around 28.06% of gross salary.
These contributions ensure access to public healthcare and other social benefits.
8. Collective Bargaining and Trade Unions
Collective bargaining plays a significant role in shaping labor conditions in Greece:
- Trade unions negotiate wages, benefits, and working conditions on behalf of employees.
- Many industries have sector-specific collective agreements that set minimum standards beyond the legal requirements.
Employees have the right to join trade unions and participate in strikes, provided they follow legal procedures.
9. Anti-Discrimination Laws
Greek labor laws prohibit discrimination based on:
- Gender
- Age
- Race or ethnicity
- Religion
- Disability
- Sexual orientation
Employers must ensure equal treatment in hiring, promotions, and workplace practices. Victims of discrimination can file complaints with the Greek Ombudsman or pursue legal action.
10. Remote Work and Flexible Arrangements
With the rise of remote work, Greece has introduced measures to accommodate flexible working arrangements:
- Employers and employees can agree on teleworking terms through a written contract.
- Remote workers are entitled to the same rights and protections as on-site employees, including breaks and overtime pay.
