Employment laws in Greece

Due to its strong economic recovery and growing GDP, Greece is emerging as a promising destination for business growth. Its strategic location as a gateway between Europe, Asia, and Africa, coupled with its world-class logistics through the Port of Piraeus and a highly skilled workforce, further enhances its appeal.

Expanding into a new market also brings important responsibilities. A clear understanding of employment laws in Greece is essential for seamless operations. These rules shape key areas of workforce management, including hiring, payroll, and employee benefits.

A workforce management platform like Payoneer Workforce Management helps streamline these processes by helping you navigate the labor laws in Greece. This article outlines the key aspects of employment in Greece that contribute to building a fair and structured work environment.

Key employment laws in Greece

Greece has a well-established system of employment laws that safeguard the employer as well as employee rights in Greece, creating a balanced and productive work environment.

1. Law against discrimination at workplace: This law prohibits discrimination among employees on grounds of color, race, ethnic or national origin, religion or belief, sexual orientation, social status, gender identity, age, etc.

2. Law against violence and harassment at work: This law lays down a framework that helps prevent, address, and combat any instance of harassment or violence at work. It aims at creating a working environment that ensures the well-being of all individuals and protects everyone’s interests. 

3. Law about occupational safety: This law states that employers are obliged to maintain the safety and good health of workers at the workplace. Employers should implement measures that can help evaluate the risks and devise measures to avoid or combat them right at the source. 

4. Law on weekly rest and maximum employment limits: According to this law, for each period of 24 hours, employees shall receive uninterrupted rest for 11 hours. It also states that workers should receive at least 24 hours of uninterrupted rest every week. 

Contract employment laws in Greece

Employment contracts define the kind of relationship between employers and employees. They help both parties set clear expectations for employment. 

The different kinds of employment contracts in Greece are:

• Indefinite term contract: In this kind of agreement, the tenure of the employee’s employment is not fixed. To terminate this type of employment contract, employers must comply with a formal notice period and provide severance pay based on the employee’s years of service. 
• Fixed-term contracts: This kind of employment contract has a fixed date of commencement and ending. It is usually used for project-based work or to replace an absent employee. Fixed-term contracts dissolve automatically after the expiry of the term. 

Essential contract terms

Employers must provide written employment contracts to employees, in English and Greek. This serves as a reference for both parties and helps maintain transparency. 

An employment contract should contain the following:

• Name of the employer and the registered address of the business
• Name of the employee
• Place of work
• The role for which the employee is being hired and its description
• The date of commencement of work
• Duration of the employment contract
• Employee’s basic salary, allowances, and deductions
• Benefits like leaves

Minimum wage in Greece

The minimum wage in Greece is set at €830 per month. 

Working hours in Greece

Having fixed working hours is essential for maintaining a healthy work-life balance. The working hours in Greece are fixed at 40 hours per week. 

Overtime laws in Greece

Employers may ask employees to work beyond their working hours in case there is an excessive workload. 

This is limited to 5 hours a week if the employee works for 5 days a week, and 8 hours a week if the employee works for 6 days a week.

Mandatory benefits

Employers should make sure that certain benefits are clearly established before the commencement of an employment relationship. These benefits impact an employee’s experience directly. 

Some mandatory benefits that employees in Greece are entitled to are mentioned below: 

• Annual leave in Greece: Employees shall get paid time off in Greece based on the duration of their service.

• Sick leave in Greece: Employees are also entitled to paid sick leave in Greece, the length of which depends on how long the employee has been working. 

• Public holidays in Greece: Employees in Greece are entitled to leave on 14 public holidays.
  • New Year’s Day
  • Epiphany 
  • Orthodox Ash Monday 
  • Independence Day
  • Orthodox Good Friday
  • Orthodox Easter Sunday
  • Orthodox Easter Monday
  • Labor Day 
  • Orthodox Whit Sunday
  • Orthodox Whit Monday
  • Assumption Day 
  • Ochi Day 
  • Christmas Day 
  • Second day of Christmas 
    
• Maternity leave in Greece: In Greece, female employees are entitled to a maternity leave of 119 days. The employees have to take the first 56 days’ leave before the child is born, and the remaining 63 days’ leave after the child is born. During this period, e-EFKA pays an allowance to the employees. 
  
  Employees also get a special maternity leave of up to 9 months after they have exhausted their maternity leave, leave equal to the reduced work hours for childcare, and annual leave. To avail this, the employee should remain insured with e-EFKA. 
• Paternity leave in Greece: Employees get paid paternity leave in Greece for 14 days. 
• Health insurance: Just like the Croatian Health Insurance Fund (HZZO) manages the mandatory health insurance of employees in Croatia,in Greece, e-EFKA is a central digital hub that manages all health-related and other social security matters.
  
  Employees who are insured with e-EFKA receive illness benefits from the National Organization for the Provision of Health Services (EOPYY). 
• Social security: Employees in Greece are entitled to several pensions based on their contributions. This contribution is jointly shared between the employer and the employee. Employees insured in e-EFKA contribute a portion of their salary for insurance, out of which 13.87% is paid by the employee and the remaining 22.29% is paid by the employer. This typically applies to employees with a salary equal to or higher than €7,126.94.

Termination

Understanding the termination laws in Greece is essential for employers, as they provide clear guidelines for both parties when ending an employment relationship.

Valid termination scenarios

There are some scenarios in which an employment contract may dissolve:

1. If the employee resigns 
2. If the employer and the employee mutually agree to dissolve an employment contract 
3. If an employer terminates an employee during the probation period
4. If the employer terminates the employee on account of misconduct, absence without leave, performance issues, etc. 

Probation period rules

Employees have to serve a probation period in Greece of 6 months. In case the employment contract is for a fixed duration, the probation period shall be limited to 1/4th of the expected duration of the employment contract. 

Notice period

Employees have to serve a mandatory notice period in Greece before they stop working in an organization. This period is used for hiring replacements, transferring data, knowledge, and responsibilities, and finalizing pending work. 

• If an employment contract terminates while an employee is still in probation, a notice period is not mandatory. 
• If an employment contract terminates after an employee’s probation period, the notice period depends on the tenure of their service. 

Severance pay

Employers should pay their employees severance pay in Greece, which is a benefit package that supports employees when they are laid off. 

The amount of severance pay an employee is entitled to receive depends on the tenure of their employment. Have a look at the table below: 

Navigate employment laws in Greece with Payoneer Workforce Management

Navigating employment regulations in Greece can be complex, as employers must carefully manage key areas like contracts, employee leave, payroll, and termination in line with local laws.

Using a solution like Payoneer Workforce Management can help streamline these responsibilities by centralizing workforce processes and ongoing compliance. 

From onboarding employees to handling payroll and day-to-day HR tasks, it enables businesses to efficiently navigate Greece’s regulatory requirements while reducing administrative burden.

Book a demo today!