Employment in Greece has constantly decreased since January 2015 to 24.47%.
The most common type of work contract in Greece is the full-time contract, with an indefinite duration. Part-time work isn’t common and the maximum length of a single fixed-term contract is 36 months.
Children under 15 years of age are only allowed to work for an industrial business if the only other employees are the employer’s family and if the child’s health is not at risk.
Key Factors to Consider When Employing in Greece:
There are several key areas to be aware of within the Greek employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department. These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.
The most common type of work contract in Greece is the full-time contract, with an indefinite duration, while part-time work isn’t common. A fixed-term contracts is prohibited for permanent tasks and the maximum length of a single fixed-term contract is 36 months.
Termination of employment contracts in Greece is governed by Articles 669 et seq. Greek Civil Code.
Employment contracts can be concluded for both limited and unlimited periods. Fixed (limited) contracts of employment by rights end upon expiry of the period for which they were entered into (Art. 669 Greek Civil Code). Should the employee continue to offer his services after his period of service has expired, however, and the employer accepts these, this is regarded as a tacit extension of the employment contract. The employment contract is consequently regarded as being extended for an unspecified period. Either party can terminate a contract of employment for an unlimited term.
According to Article 7 of Law N. 2112/20, any unilateral amendment of the employment conditions to the employee’s detriment is deemed termination of the employment contract by the employer. This covers the cases of posting of the employee abroad despite it being against his wishes, for example, demotion to a lesser position and salary cuts.
Length of service corresponding to period of notice or compensation as follows:
- 2 months to 1 year: 1 month or 1 month’s income
- 1 year to 4 years: 2 months or 2 months’ income
- 4 years to 6 years: 3 months or 3 months’ income
- 6 years to 8 years: 4 months or 4 months’ income
- 8 years to 10 years: 5 months or 5 months’ income
- 10 years: 6 months or 6 months’ income
- 11 years: 7 months or 7 months’ income
- 12 years: 8 months or 8 months’ income
- 13 years: 9 months or 9 months’ income
- 14 years: 10 months or 10 months’ income
- 15 years: 11 months or 11 months’ income
- 16 years: 12 months or 12 months’ income
- 17 years: 13 months or 13 months’ income
- 18 years: 14 months or 14 months’ income
- 19 years: 15 months or 15 months’ income
- 20 years: 16 months or 16 months’ income
- 21 years: 17 months or 17 months’ income
- 22 years: 18 months or 18 months’ income
- 23 years: 19 months or 19 months’ income
- 24 years: 20 months or 20 months’ income
- 25 years: 21 months or 21 months’ income
- 26 years: 22 months or 22 months’ income
- 27 years: 23 months or 23 months’ income
- 28 years and above: 24 months or 24 months’ income
The maximum length of probationary period is 12 months and dismissal due to redundancy is allowed by law.
To be entitled to an old-age pension, it is necessary to have reached a general age limit of 67 years and a minimum insurance period of 15 years (4,500 days of employment). The general requirements for receiving a full pension is the accumulation of 40 insurance years (12,000 days of employment) and being 62 years of age.
Furthermore, dependants are entitled to an additional amount per month, on certain conditions.