Labour & Employment in 42 jurisdictions worldwide 2013 · United Kingdom Matthew Howse and Sarah...

2013

®

Labour & Employmentin 42 jurisdictions worldwideContributing editors: Matthew Howse, Walter Ahrens,François Vergne and Mark Zelek

Published by Getting the Deal Through

in association with:

Afridi & AngellAndreas Neocleous & Co LLC

Basham, Ringe y Correa SC Biedecki Biedecki & Partners

Blesi & PapaBloomfield Advocates & Solicitors

BLS Rechtsanwälte Boller Langhammer Schubert KGCastegnaro – member of Ius Laboris

CederquistCentral Law – Medina, Rosenthal & Asociados

Central Law – Molina & AsociadosCentral Law – Quirós Abogados

Díaz Durán & Asociados – Central LawDittmar & Indrenius

DMK Lawyers – Central LawF Castelo Branco & Associados

Greenberg Traurig LLPHeenan Blaikie LLP

Hoet Peláez Castillo & Duque Holding Redlich

Hutabarat Halim & RekanIason Skouzos & Partners

KK LegalKochhar & Company

Lee, Tsai & Partners Attorneys-at-LawMachado Associados Advogados e Consultores

Morgan, Lewis & Bockius LLPNorrbom Vinding

Philippi, Yrarrázaval, Pulido & Brunner LtdaPosse Herrera Ruiz

Rusconi, Medina & Asociados – Central LawSagardoy Abogados – member of Ius Laboris

TMI AssociatesToffoletto De Luca Tamajo e Soci – member of Ius Laboris

TSMP Law CorporationTuca Zbârcea & Asociatii

Contents

www.gettingthedealthrough.com

®

Labour & Employment 2013Contributing editors Matthew Howse, Walter Ahrens,François Vergne and Mark ZelekMorgan, Lewis & Bockius LLP

Business development managers Alan LeeGeorge IngledewDan White

Marketing managers Rachel Nurse Zosia DemkowiczMarketing assistants Megan FriedmanCady AtkinsonRobin Synnot Joe RushAdministrative assistants Parween BainsSophie Hickey

Subscriptions manager Rachel Nurse [email protected]

Head of editorial production Adam MyersProduction coordinator Lydia Gerges

Senior production editor Jonathan CowieProduction editor Jo Morley

Chief subeditor Jonathan AllenSenior subeditor Caroline Rawson

Editor-in-chief Callum CampbellPublisher Richard Davey

Labour & Employment 2013 Published by Law Business Research Ltd 87 Lancaster Road London, W11 1QQ, UK Tel: +44 20 7908 1188 Fax: +44 20 7229 6910© Law Business Research Ltd 2013No photocopying: copyright licences do not apply.First published 2007 Eighth edition 2013 ISSN 1744-0939

The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer–client relationship. The publishers and authors accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of April 2013, be advised that this is a developing area.

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LawBusinessResearch

Global Overview Mark Zelek Morgan, Lewis & Bockius LLP 3

Women in the Boardroom – Tackling Gender Imbalance Matthew Howse and Rachel Ashwood 5 Morgan, Lewis & Bockius LLP

Australia Charles Power and Michael Selinger Holding Redlich 8

Austria Thomas Boller and Martina Raczova BLS Rechtsanwälte Boller Langhammer Schubert KG 16

Brazil Fabio Medeiros Machado Associados Advogados e Consultores 23

Canada Douglas G Gilbert, Roy L Heenan and Rhonda R Shirreff Heenan Blaikie LLP 29

Chile Enrique Munita Philippi, Yrarrázaval, Pulido & Brunner Ltda 39

China Min Duan Morgan, Lewis & Bockius LLP 46

Colombia Carolina Camacho and Camilo Bernal Posse Herrera Ruiz 53

Costa Rica Alfonso Carro S Central Law – Quirós Abogados 59

Cyprus Nicholas Ktenas Andreas Neocleous & Co LLC 65

Denmark Morten Langer Norrbom Vinding 71

Dominican Republic Llilda Solano and Henry Pastrano DMK Lawyers – Central Law 78

El Salvador Piero Antonio Rusconi Gutierrez and Erwin Alexander Haas 84 Rusconi, Medina & Asociados – Central Law

Finland Seppo Havia and Jessica Brander Dittmar & Indrenius 88

France François Vergne and Antoine Jouhet Morgan, Lewis & Bockius LLP 96

Germany Walter Ahrens Morgan, Lewis & Bockius LLP 103

Greece Theodoros Skouzos Iason Skouzos & Partners 112

Guatemala Juan Pablo Carrasco de Groote Díaz Durán & Asociados – Central Law 122

Honduras Ricardo Padilla and Marcela Aguilar Central Law – Medina, Rosenthal & Asociados 127

Hungary Gyula Korösy and Zoltán Kató KK Legal 132

India Manishi Pathak Kochhar & Company 140

Indonesia Pheo M Hutabarat and Asido M Panjaitan see www.gettingthedealthrough.com Hutabarat Halim & Rekan

Italy Valeria Morosini Toffoletto De Luca Tamajo e Soci – member of Ius Laboris 146

Japan Motoi Fujii and Rie Taiko TMI Associates 153

Kazakhstan Vladimir Shuster, Klara Nurgaziyeva and Askar Baigazin Morgan, Lewis & Bockius LLP 164

Luxembourg Guy Castegnaro Castegnaro – member of Ius Laboris 170

Mexico Jorge de Presno Arizpe and Alvaro González-Schiaffino Basham, Ringe y Correa SC 179

Netherlands TMJ (Dorothé) Smits Greenberg Traurig LLP 185

Nicaragua Betsy Aleska Baltodano Sánchez Central Law – Molina & Asociados 192

Nigeria Adekunle Obebe and Dayo Adu Bloomfield Advocates & Solicitors 198

Poland Katarzyna Zwierz-Wilkocka and Radosław Biedecki Biedecki Biedecki & Partners 203

Portugal Alexandra Almeida Mota F Castelo Branco & Associados 210

Romania Serban Pâslaru Tuca Zbârcea & Asociatii 216

Russia Bela Yu Pelman, Vasilisa Strizh and Brian L Zimbler Morgan, Lewis & Bockius LLP 222

Singapore Ian Lim, Freddie Lim and Samantha Lee TSMP Law Corporation 229

Spain Iñigo Sagardoy and Carlota Riquelme Sagardoy Abogados – member of Ius Laboris 237

Sweden Robert Stromberg and Jonas Lindskog Cederquist 243

Switzerland Roberta Papa and Thomas Pietruszak Blesi & Papa 250

Taiwan Chung-Teh Lee Lee, Tsai & Partners Attorneys-at-Law 257

United Arab Emirates Charles Laubach and Amun Bashir Afridi & Angell 266

United Kingdom Matthew Howse and Sarah Ash Morgan, Lewis & Bockius LLP 273

United States David A McManus and Michelle S Silverman Morgan, Lewis & Bockius LLP 280

Venezuela Fernando Peláez-Pier and John D Tucker Hoet Peláez Castillo & Duque 289

Greece Iason Skouzos & Partners

112 Getting the Deal Through – Labour & Employment 2013

GreeceTheodoros Skouzos

Iason Skouzos & Partners

Legislation and agencies

1 What are the main statutes and regulations relating to employment?

Articles 648 to 680 of the Greek Civil Code on ‘contract of employ-ment’ are the basic provisions that govern the employment relation-ship between employers and employees. These articles define: • thenatureofanemploymentcontract;• theemployer’sandemployee’smainobligations;• thetimeofpaymentofsalaryandtheconsequencesofdelay;• theconsequencesofanemployee’ssickness;• healthandsafetyatwork;• collectiveemploymentagreements;• thedeemedrenewalofanemploymentterm;• annualleave;and• terminationforaseriousreason.

2 Is there any law prohibiting discrimination or harassment in

employment? If so, what categories are regulated under the law?

Greece has adopted Directives 43/2000/EC and 78/2000/EC, which governthegeneralframeworkofequaltreatmentinemployment.The relevant national laws are:• LawNo.3304/2005fortheapplicationoftheprincipleofequaltreatmentregardlessofnational,racial,religiousorotherorien-tationorbeliefs,invalidity,ageorsexualorientation;and

• LawsNo.3769/2009and3896/2010for theequal treatmentbetween men and women in employment.

According to the above legislation, all direct or indirect discrimina-tionorharassmentthatleadstotheabuseofapersonareillegal.

3 What are the primary government agencies or other entities

responsible for the enforcement of employment statutes and

regulations?

TheMinistryofLabourandSocialSecurity isauthorised tocon-troltheenforcementofemploymentstatutesandregulationsaswellas to provide necessary information to employees. This objective is realisedthroughthecreationofspecialauthoritiesresponsibleforspecificissues.TheGeneralDirectorateofConditionsandHygieneatWork, theDepartmentofLabourConditions, theDepartmentof Management Information, Training and Monitoring Policy WorkingforSafetyandHealth,theCentreofHygieneandSecurityat Work, the Labour Inspection Authority (LIA) and the policeareauthorisedtocontrol theenforcementof thewhole legislativeframeworkconcerningemployment.TheroleoftheSocialSecurityFoundation (IKA) is also very important in relation to the socialsecurityandinsuranceobligationsofemployers.AccordingtoLawNo.3842/2010,taxauthoritieshavethecompetencyandtheobli-gationtoverifypendingsocialsecuritycontributionsandnotifytheIKAwhereanemployerhasnotfulfilledhisorherobligations.

Worker representation

4 Is there any legislation mandating or allowing the establishment of a

works council or workers’ committee in the workplace?

AccordingtoLawNo.1767/1988,theemployeesofanybusinessthatemploysmorethan50peoplehavetherighttobeelectedandestablishworkscouncilsfortheirrepresentationintheenterprise.Ifthereisnotradeunionorganisationwithinthebusiness,therelevantthreshold is 20 instead of 50 employees.Themembers ofworkscouncils enjoy the sameprotectionas theadministratorsof tradeunionorganisations.Employers,personsactingontheirbehalfandany third parties are prohibited from proceeding to actions or omis-sions with a view to impede the exercise of the employees’ rights describedaboveand,morespecifically:frominfluencingtheemploy-eesbyusingthreatsofdismissalorothermeanstoobstructtheexer-ciseofrightsprovidedbythisLaw;fromsupportingthecandidatureofemployeeswithfinancialorothermeans;andfrominterveningby any means in the exercise of the employees’ general assemblies.

Background information on applicants

5 Are there any restrictions or prohibitions against background checks

on applicants? Does it make a difference if an employer conducts its

own checks or hires a third party?

AccordingtotheDataProtectionLawandtheexplanatoryDirectiveNo.115/2001oftheDataProtectionAgency(DPA),collectingandprocessing personal data of candidates in order to hire them is only allowedforpurposesdirectlyconnectedtotheemployment,andtheemployermayonlyrefertodatathatisabsolutelynecessarytoassesswhether a candidate is suitable and skilled for the position. Theemployermust address the candidates themselves to collect theirpersonal data. Collecting candidates’ personal data from third par-ties is not prohibited, as long as it is necessary for the achievement of thegoal.Avitalprerequisiteisforthecandidatestobeinformedinadvancethatinformationfromthirdpartieswillbesought,andtheirexplicitconsentmusthavebeengiven.Anemployerthatintendstoseekinformationfromthirdpartieshasadutytoinformthecandi-dateofthepurposesofthecollectionandprocessingofthedata,thesourcesfromwhichinformationwillbesought,thetypeofinforma-tionandtheconsequencesofapossiblerefusalofconsent.Forsomeposts in particular (eg, for employeesmanagingmonetary issues,teachers),thecollectionandprocessingofdataregardingaperson’sprosecutionsandconvictionsiscompulsory.

6 Are there any restrictions or prohibitions against requiring a medical

examination as a condition of employment?

Personal data regarding the candidate’s health must be collecteddirectlyandonlyifitisabsolutelynecessaryforevaluatingwhetherthecandidateissuitableandskilledforaspecificpostoroccupation,

Iason Skouzos & Partners Greece

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presentorpotential(eg,physicalsforindividualsemployedinnurs-eries, restaurants or hotels, drivers, pilots, etc); in order for theemployer to perform his or her duty regarding the hygiene andsafetyoftheworkingplace;orforthefoundationoftheemployees’rightsandtheattributionoftherelativesocialbenefits.

7 Are there any restrictions or prohibitions against drug and alcohol

testing of applicants?

Thereisnospecificdirectiveorregulationregardingdrugoralcoholtesting.As a general rule, tests, analyses and relevant proceduresthat are related to past convictions, habits or even the mental health statusoftheindividualmaybeincludedinarecruitmentprocess.Becausesuchtestsconstituteadeepinvasionofthecandidate’sper-sonality and personal life, the general principle of proportionality dictatesthattheymayonlybeconductedinexceptionalcases,onlyif it isabsolutelynecessaryfortheachievementofaspecialcausedirectlyconnectedtothatparticularpostandonlywiththecandi-date’s written consent.

Hiring of employees

8 Are there any legal requirements to give preference in hiring to, or not

to discriminate against, particular people or groups of people?

ByvirtueofLawNo.2643/1998oncare for the employmentofpersons of special categories and other provisions:• GreekorforeigncompaniesorbusinessesthatoperateinGreeceand their affiliates, if they employ 50 or more persons, areobliged to hire persons of ‘protected categories’, as defined in theaboveLaw,upto8percentoftheirtotalworkforce;and

• certainpublicinstitutionsareobligedtoemploypersonsofthesamecategoriesupto10percent.

Enterprisesandinstitutionsthathavehadlossesinthelasttwofiscalyears are exempted from the above obligation. The above percent-ages are split among the following categories of protected persons, subjecttotheproportionsprovidedinarticle2ofthesameLaw:• parentsthathavemorethanthreechildren;• personswithaninvaliditystatusofover50percentandper-sonswithlimitedprofessionalcapacityduetoanychronicbod-ily,mental or psychiatric illness (personswith special needs),providedtheyareregisteredintheLabourForceEmploymentOrganisationregistersofdisabledunemployed;

• personswithchildren,siblingsorspouseswithadisabilityper-centage of over 67per cent due to severemental andbodilyillness,orwithatleasta50percentinvaliditypercentageduetointellectualdisabilityorautism;

• personswhoparticipatedintheNationalResistanceandtheirchildren;

• members of rebel groups that participated in the NationalResistanceandtheirchildren;

• survivingspousesorparentofpersonsthatdiedinthedictator-shipresistanceagainstthecolonel’sjunta;

• warvictimswithdisabilities;• personsincapacitatedbythehardshipsofmilitaryserviceiftheyserved,inanycapacity,intheJoinedArmedForcesorSecurityForces,andtheirchildren;

• civilianwarvictims,war-disabledpersonsandtheirchildren;• victimsofthepeaceperiodandtheirchildren;• spousesofpersonsthathavediedorhavebeenmissingsincethemilitarycoupandthemilitaryeventsinCyprusin1964,1967and1974.

9 Must there be a written employment contract? If yes, what essential

terms are required to be evidenced in writing?

No. As a rule, the agreement does not have to be in writing.Therefore, it is possible to be made explicitly or tacitly, orally or in writing. There are cases where the law provides for an employ-mentcontractinwriting,suchasanemploymentcontractwiththestateorapubliccorporation,apart-timeemploymentcontractoranemploymentcontractbyrotation(inturn).However,accordingtoPresidentialDecreeNo.156/1994,theemployerisobligedtonotifythe employee in writing, within two months of the commencement of the working relationship, of the essential terms of the employ-ment contract, which are the following:• theIDdataofthecontractingparties;• theplaceofwork;• thepositionoftheemployee,aswellastheobjectofhisorherwork;

• thedatefromwhichthecontractisinforceanditsduration;• thedurationoftheleaveofabsencewithbenefitstheemployeeisentitledto,aswellasthemannerandtimeofitsissuance;

• all thekindsofremunerationtheemployee isentitledto,andtheirfrequency;

• thedurationoftheregulardailyandweeklyemploymentoftheemployee;

• referencetothecollectiveregulationthatappliesanddefinestheminimumtermsofwageandemploymentoftheemployee;and

• thecompensationthatmaybeowedifthecontractisterminated,as well as the deadlines to be kept by both the employer and the employee,pursuanttothe legislationinforce intheeventtheemployment contract is terminated.

10 To what extent are fixed-term employment contracts permissible?

Theyareallowed.Thecourtsandsubsequentlythestatutesprotectthe employee from theabuseby the employerof themeaningof‘fixed-term’, that is, naming a contract as fixed-term when it is really an indefinite-termemployment contract. Specifically, according toPresidentialDecree81/2003,article5(asreplacedbyarticle41ofLaw3986/2011),ifthedurationofsuccessiveemploymentcontractsexceedsthreeyearsintotal,withoutbeingjustifiedbyspecificrea-sons or needs provided by law, it is deemed that those contracts cover constant and permanent needs of the enterprise and conse-quently are converted into employment contracts or relations ofindefiniteterm.If,inthedurationofthosethreeyears,thenumberofrenewalsofthesuccessivecontractsorlabourrelationsismorethanthree,withoutany legal justification, it isdeemedthat thosecontracts cover constant and permanent needs of the employer and consequentlyaredeemedbylawtobeemploymentcontractsorrela-tionsofindefiniteterm.Theonusofprovingtheoppositelieswiththeemployer.‘Successive’contractsorlabourrelationsarethefixed-termcontractsorlabourrelationsbetweenthesameemployerandthe same employee, with the same or resembling terms of employ-mentandanintervalofnomorethan45calendardays.

11 What is the maximum probationary period permitted by law?

Intheeventofaprobationaryemployment(ie,whentheemployerwishes to test the employee’s capacities before definitely hiring the employee), there is a contract of employment as of the date theemployeeundertookemployment.Thisprobationaryemploymentmay either be a definite-term employment contract, when it is agreed thatitshallbedejureterminatedaftertheprobationaryperiod,oranindefinite-termemploymentcontract,whichthereforeduringtheprobationaryperiodissubjecttotheterminationclause.Article74ofLawNo.3863/2010definesthat,intheeventofanindefinite-termemploymentcontract,theprobationaryperiodmaynotexceed12months,duringwhichtimethecontractmaybeterminatedwithout



duenoticeandwithoutanycompensationfordismissal,except ifotherwise agreed between the parties. The employee shall receive wagesduringtheprobationaryperiodaswell.

12 What are the primary factors that distinguish an independent

contractor from an employee?

Anemployeeissubjecttoa‘contractofdependentservices’,bywhichthe contracting parties agree to the provision of services in advance andasalary,regardlessofthewayitispaid,andtheemployeeissub-ject to legal and personal dependence on the employer. This depend-ence is expressed by the latter’s right to give the employee binding commands and directions regarding the manner, place and time of theexecutionofservices,andtomonitorandcontroltheemployeeto ascertain whether he or she complies with them. An independent contractorisundera‘contractfortheprovisionofliberalservices’,that is, heor sheprovideshisorher serviceswithoutbeing sub-jecttoanyone’scontrolandmonitoring,andwithoutbeingobligedto comply with commands and directions, especially regarding the manner and time of the provision of his or her services. These are the factualcircumstancesthatacourtwilllookatshouldadisputeariseregarding the classification of a contract. Employment contracts are often hidden under ‘liberal provision of services’ agreements.Employers are very keen to stretch this definition in order to employ aworkforcewithoutbeingsubjecttosocialsecuritycontributionsandwithouthavingtorespecttheregulationsrelatingtoovertime,annualleave,terminationnotice,compensation,etc.Anindepend-entcontractorhasdifferenttaxobligations,keepsaccountingbooksandisliableforhisorherownsocialsecuritycontributionswithouttheinvolvementorburdenofanemployer.

Foreign workers

13 Are there any numerical limitations on short-term visas? Are visas

available for employees transferring from one corporate entity in one

jurisdiction to a related entity in another jurisdiction?

Yes;accordingtoarticle14(4)ofLawNo.3386/2005ontheentry,residence and social integration of third-country nationals in theterritoryofGreece (theThird-countryNationalsLaw),numericallimitations apply according to relevant ministerial decisions that aretakeneveryyearandthatprescribethenumberofthird-countrynationals per region and per specialisation. Accordingtoarticle17(1)(a)oftheabove-mentionedLaw,resi-

dence permits are granted to higher managerial employees and exec-utiveemployeesofforeignbusinessentitiesthatoperateinGreecethroughasubsidiaryorabranch.According toarticle17(1)(b)of the sameLaw, residenceper-

mitsarealsograntedtothird-countrynationals-employeeswhoareemployedbyforeignbusinessentities(industrial,maritime,commer-cial)thatlegallyconductoperationsinGreece.Accordingtoarticle17(1)(e),foreignspecialisedscientificpersonnelmayalsobegrantedresidence permits with certain limitations.

14 Are spouses of authorised workers entitled to work?

CitizensofthirdcountriesthatresidelegallyinGreeceformorethantwoyears(inthiscasecalled‘sponsors’)mayrequestthattheirspouseandtheirunderagechildrenaregiven leavetoenterandreside inthecountryforreasonsoffamilyreunification.Whenthe‘sponsor’holds a residence permit for dependent employment or independent economic activity, the family members have, respectively, the right to dependentemploymentortoindependentfinancialactivity(article59oftheForeignNationalsLaw).

15 What are the rules for employing foreign workers and what are the

sanctions for employing a foreign worker that does not have a right to

work in the jurisdiction?

Subjecttothespecialprovisionsapplicabletothird-countrynation-alswhoarealreadylegallyresidentsinGreece(executiveemployees,familymembers,etc),asageneralrule,inordertoemployathird-countrynationalanemployermustofficially‘invite’himorher,fileanapplicationtothelocalauthorityandguaranteethepaymentofa sumequal to thebasic statutory remunerationofunspecialisedworkers. If, after the application is approved for the employment ofthethird-countrynationalbytheapplicant-employer,thethird-countrynationalisgrantedapermissionofentryfortheprovisionofdependentemployment;thisisusuallygrantedforoneyear,andalwaysforadefiniteterm.Theapplicantmustshowacontractofemploymentthatprovesthatheorsheshallreceiveremunerationequal to the above-mentioned statutoryminimum.The residencepermit is renewable. The sanctions for employers who employ a third-countrynationalwhoisnotequippedwiththenecessaryresi-dencepermit,oratleastproofthatallrelevantdocumentationhasbeen depositedwith an application at the relevant authority, areadministrativefinesofuptoe15,000,closureofthebusinessfrom1to24monthsandimprisonmentofthreemonthstofiveyears(arti-cle86ofLaw3386/2005).

16 Is a labour market test required as a precursor to a short or long-term

visa?

Thenumberofresidencepermitsfordependentemploymentissuedevery year is determined according to state reports that indicate the existing needs in the workforce and the job vacancies per region.

Terms of employment

17 Are there any restrictions or limitations on working hours and may an

employee opt out of such restrictions or limitations?

Thelegaldailyworkinghoursforemployees,thatis,thetimeworkplanasimposedbythelaw,iseighthoursforenterprisesemployingtheirpersonnelfivedaysperweek,andsixhoursand40minutesforbusinessesemployingtheirpersonnelsixdaysperweek.Ingen-eral, an agreement between the employer and the employee is pos-sibleregardingaworkingschedulewithfewerhoursthanthelimitimposedbythelaw,butwithoutprejudicetotheentitlementoftheemployeeforfullremuneration.LawNo.3385/2005(article2)providesthattheemployerand

theemployeemayarrangetheworkinghoursinadifferentmannerif this is dictated by the employer’s increased needs for a specific period,whichmaynotexceedfourmonthspercalendaryearintotal.Underthatlatterarrangement,twoextrahoursmaybeagreedperday,whichare‘credited’totheemployee,sothattheyaredeductedfromhisorherworkinghoursatalaterstage.Alternatively,insteadoflesshoursperdayduringanotherperiod,theemployeemaytakedays off. There are many other provisions regarding payment for nightshiftandSundaywork,aswellaspublicholidays,whichare,as a rule, of public order, and therefore anywaiveronbehalf ofemployeesfromtheirrelevantrightswouldbeheldinvalid.Law3846/2010provides thatduringanexistingemployment

contractorwhendrawingupanewcontract,theemployerandtheemployeemayagreebyawrittenindividualagreementeitherdaily,weekly, fortnightly or monthly employment, for a definite or indefi-nite period,whichwill be shorter than the full-time employment(part-time employment). If this agreement is not disclosed in thecompetentLabourInspectoratewithineightdaysofitssignature,itispresumedthattheemploymentagreementisofafull-timenature.



18 What categories of workers are entitled to overtime pay and how is it

calculated?

In Greek law, two types of overtime work are recognised: overwork andovertime.LawNo.3385/2005 introducedthenewnotionof‘overwork’. This term was designed to loosen the traditionally strict statutory approach that everyhour above the eighth is overtime.Therefore, ‘small’ excesses of the eight-hour limit are now called‘overwork’.With regard towork hours, overwork and overtimehoursingeneral,therelativeprovisionsapplytoallsalariedpersons,regardless of whether they are employees or workers, except manag-ersordirectors(thatis,senioremployeesoftheenterprise–thesearethe persons who have administrative tasks and managerial responsi-bilities,andatthesametimetheirremunerationismuchhigherthantheircolleagues).By virtue of LawNo. 3385/2005 as completed by LawNo.

3863/2010,anemployeemaybeoccupiedforafurtherfivehoursperweekattheemployer’sdiscretion(overwork).Thoseoverworkhours(fromthe41sttothe45thhour)areremuneratedwiththereg-ularwageperhourincreasedby20percent.Employeesforwhomthesix-working-daysystemappliesmaybeoccupiedforeightmorehoursperweekattheemployer’sdiscretion(overworkfromthe41sttothe48thhour).Theemployeesinthiscasearealsoremuneratedwiththeregularwageperhourincreasedby20percent.Overtimework,thatis,workexceedingthemaximumlimitof

legal work of employees and providing services to employers beyond 45or48hoursperweek–inotherwords,exceedingtheoverworkhoursaswell–isallowedonlyforspecificactivitiesthatareconsid-eredtobeurgentandexceptionalorextraordinary.Theemploymentofmore than45or48hoursperweek respectively is consideredovertimeandtheemployeeispaidforthesehoursasfollows:fromoneto120hoursperyearthewageisincreasedby40percent;formorethan120hoursperyearthewageisincreasedby60percent.For the realisation of overtime the following are required:

a recordof awritten announcementby the employer to theLIAresponsible for the region and the keeping by the employer of a spe-cial overtime book.

Managers are exempted from the application of several provi-sionsoflabourlawandarenotprotectedbytherestrictionsofthelegalworkinghours(LawNo.2269/20);theymayworkovertimeoronSundaysandduringthenightwithoutcompensation(PresidentialDecreeNo.8of13April1932).Thereisnoconcreteformulathatdefinesamanagerordirectorand,incasesofdispute,thecourtswilllookintothespecificfactsoftheparticularcase.Ahighsalarywillnotperseguaranteethataworkershallbeconsideredamanager,becauseitmaywellbethathighremunerationisjustifiedbythespe-cial skills that a worker has. For all other workers, the conventional workscheduleofupto40hoursperweekisapplied.Specificallyinrelationtopublicservants,overtimeworkisnot

compensatedunlessitisnecessarytocoverseasonal,extraordinaryor urgent public needs.According to upcoming changes that arebeingintroducedasemergencymeasuresinresponsetotheGreekpublicdebtcrisisof2010,thetotalpayablemonthlyhoursofover-timeworkperemployeewasdiminishedfrom60to40hours(article6ofLawNo.3833/2010).

19 Is there any legislation establishing the right to annual vacation and

holidays?

TherighttoannualvacationandholidaysisgovernedbyLawNo.539/1945andarticles666and667oftheGreekCivilCode.BeforetheintroductionofLawNo.3144/2003,anemployeewasentitledtoholidayleaveafterbeingcontinuouslyemployedfor10months.Since thisLawcame into forceon8May2003, the employee isentitledtovacationleavewithoutthe10-monthrequirement.Thedays of leave to which he or she will be entitled still depend on the monthsheorshehasworkedatthesameemployer;thetablebelowapplies.Vacation ispaidwith thenormalagreed salary.Sundays,

publicholidaysandsickleavearenotincludedinvacationleave.If,forexample,anemployeetakesvacationleaveof10daysandthefifthdayisapublicholiday,heorshewillcomebacktoworkonthe11thday.Iftheemployerisabusinessthatrunsfivedaysperweek,the

following applies:

Months of employment

Days of vacation leave

Vacation pay (salary-based)

Vacation pay (per diem-based)

12 months 20 96% of salary 24 x per diem

Second year 21 1 salary 25 x per diem

Third year or more 22 1 salary 26 x per diem

Employeesthathavebeenworkingforaperiodof10yearsforthesameemployerorforaperiodof12yearsforanyemployerunderanyemploymentrelationshipareentitledto25daysofholidayleave.If theemployer isabusinessthatrunssixdaysperweek,the

following applies:

Months of employment

Days of vacation leave

Vacation pay (salary-based)

Vacation pay (per diem-based)

12 months 24 96% of salary 24 x per diem

Second year 25 1 salary 25 x per diem

Third year or more 26 1 salary 26 x per diem

Employeesthathavebeenworkingforaperiodof10yearsforthesameemployerorhavebeenworkingforaperiodof12yearsforanyemployerunderanyemploymentrelationshipareentitledto30days of holiday leave.

If an employee has worked for less than a year, he or she will be entitled to two days of leave for every working month. Vacation leavewithoutpaymayalsobeagreedbetweentheparties;itisnota right or an obligation of either party. It may be agreed that leave withoutpay isontopof thestatutoryholiday,etc,dependingonthe individual circumstances.Avacationbonus is alsoobligatorybystatute.Thisequals50percentofthemonthlysalaryor(iftheemployeeispaidperdiem)13timesperdiem.Under the current legislation, the employee does not have to

submitanapplication(writtenororal)inordertogethisorherlegalannualvacation.Theemployerisobligedtograntthelegalannualvacation to the employee before the termination of the year, even if theemployeedidnotaskforit,otherwisetheemployerissubjecttopenal sanctions.

20 Is there any legislation establishing the right to sick leave or sick pay?

According toarticle5(3)ofLawNo.2112/1920andarticle8ofRoyal Decree No. 16 of 18 July 1920, salaried employees maybeabsent fromtheirwork for temporaryperiodsdue to sicknesswithout theirabsencebeingconsideredasagroundforunilateraltermination of their employment relationship. The employer is obligedtoacceptthembackatwork.Byvirtueofarticle3ofLawNo.4558/1930,atemporarysicknessperiodisconsideredaperiodbetweenone,three,fourandsixmonthsdependingonthelengthoftheemploymentaccrued,whichwouldaccordinglybefour,fourto10,10to15andover15years.

In the event of sickness of salaried personnel, employees will not beingpaidduringthewholeperiodoftheirabsencebutasfollows:• if the salaried employee has completed a period of serviceexceeding10daysbutlessthanayear,heorshehastherighttoremunerationofa15-dayperiod(providedthesicknesshasadurationof15daysormore);and

• ifthesalariedemployeehascompletedayear’sservice,heorshehastherighttoamonth’sremuneration(providedtheillnesshasadurationofonemonthormore).



Iftheabsenceislessthan15daysoramonthrespectively,thesala-riedemployeeshallberemuneratedfortheperiodoftimeofhisorher absence.Inanyevent,theemployerhasarighttodeductfromtheabove-

mentioned remunerationowed to the employee,due to sickness,theamountofmoneythelattermayhavereceivedfromtheSocialSecurityFundbyvirtueoftheLawregardingobligatoryinsurance.In order for the employee to have the right to a sickness benefit fromtheSocial Insurance Institute, theymusthavecompletedatleast120daysofworkundertheFund’sinsuranceduringthecalen-daryearprecedingthenoticeofsickness,or15monthspriortothenoticeofsicknesswithoutcalculatinginthesecondcasethedaysofworkrealisedduringthelastcalendartrimesterofthe15-monthperiod.Theamountof thedailysicknessbenefitcomesupto50percentofthedeemedminimumofthedailysalaryapplicable–onthebasisof the respective insuranceclass remuneration–duringthelast30daysofworkrealisedduringthecalendaryearpreced-ingthesickness.Thisamountconstitutesthebasicsicknessbenefitthatmaybe increased according to the family status of the sickemployee.Ofcourse, theemployerhas the right toask the sala-riedemployeetoproducesupportingdocumentsprovinghisorhersickness.

21 In what circumstances may an employee take a leave of absence?

What is the maximum duration of such leave and does an employee

receive pay during the leave?

Therearemanysituationswhereanemployeewouldbeentitledtotakealeaveofabsenceundercertainconditions.Themostsignifi-cant examples, togetherwith the correspondingmaximum dura-tions of each, are listed here below:• leavefortheeducationoftradeunionists–upto14daysofpaidleavewithinthesamecalendaryear;

• schoolandundergraduateuniversitystudentsupto28yearsofage–upto30daysperyear;remunerationunderconditionsisgivenbytheOrganisationfortheEmploymentofWorkforce;

• schoolandundergraduateuniversitystudentsover28yearsofage have the right to an additional 30 days’ leave per year at a maximum,butonlyfortheordinarylengthofstudiesincreasedbytwoyears,irrespectivelyofifthestudyprogrammehasbeenattendedcontinuouslyorintermittently;

• postgraduatestudents–upto10dayspercalendaryearforuptotwoyearswithoutremuneration;

• forvotingatnationalelections–thenumberofdaysdependson the distance to cover to reach the town where the voter is registered;leaveispaid;

• leaveduetosicknessoffamilymembers–theordinaryperiodissixdayswhethercontinuousorspreadwithinacalendaryear.The period is extended to eight days if the beneficiary has two childrenandto14daysifthebeneficiaryhasthreeormorechil-dren.Ifthebeneficiariesarespouses,eachoneisentitledtotheleave;leaveisunpaid;

• specialleaveisprovidedforminoremployeesthatarepupilsorstudentsatthesametime.Theyhaverighttotwodays’leaveforeachexamdaytheyparticipatein.Thisisunpaidleaveandmaynotbelessthan14days(eveniftheexamstakenarelessthanseven);

• leaveforbringingupchildren–followingthematernity leaveanduntil thechildreachesthree-and-a-halfyearsofage,eachworkingparentmaytakeanunpaidleaveofuptothree-and-a-halfmonths;

• leaveforvisitingachild’sschool–uptofourdayspercalendaryear;leaveispaid;

• marriage and childbirth leave – five or six (depending onwhethertheyworkfiveorsixdaysperweek)workingdaysforeachspousewithremuneration.Uponthebirthofachild,thefatherisentitledtotwodaysofleavewithpay;

• maternity leave – 17 weeks or 119 calendar days in total.Eightofthoseweeksmustbeallocatedbeforethescheduledoranticipateddateofbirth.Leaveispaidfor15daysiftheyoungmother has not completed one year with the employer, and for onemonthifshehas;

• leavefortakingcareofanewbornchild–foraperiodof30months after the end of the maternity leave, working mothers maystarttheirworkingdayonehourlaterorfinishitonehourearlier. Alternatively, it may be agreed with their employer that duringthefirst12monthstheyshalltaketwohoursoffaccord-ingly;inthatcasetheyshallhaveonehouroffforthefollowingsixmonths.Afatherwouldbeentitledtothesametimeoffiftherightisnotexercisedbythemother;leaveispaid;

• specialprovisionfortheprotectionofmotherhood.Thisben-efit is establishedbyLawNo.3655/2008andprovides for asix-month leave for mothers insured by the Social InsuranceInstitute. This leave is taken after the end of the maternityleaveandtheleaveforbringingupchildrenmentionedabove;in the event of protection of motherhood maternity leave, the Greek Manpower Employment Organisation shall pay to the employedmothermonthlyanamount equal to theminimumsalary as each time specified in the collective employment agree-ment, as well as proportional holiday leave on the basis of the above-mentionedamount;and

• leave without remuneration – this is subject to agreementbetween the employer and the employee.

22 What employee benefits are prescribed by law?

The most important employee benefits prescribed by law are holi-daybonus(seequestion19),unemploymentbenefit,childbenefit,military service benefit, family benefits, sickness benefit, marriage benefit, maternity benefit, special provision for the protection of motherhood,servicebenefit(foremployeeshavingcompletedmanyyearsofservice)andChristmasandEasterbenefit.

In view of the recent developments in the Greek economy, manybenefitsapplicabletopublicservantsandemployeesworkingunder labour contracts of either public or private lawhave beensignificantlycut,accordingtoLawNos.3833/2010and3845/2010.Remunerationbenefitsofeverykindhavebeendecreasedby20percent for employeesworking in the corepublic sector (public lawcorporate sector,municipalities, army, police, etc) and by 10 percentforemployeesworkingatprivatelawcorporatebodiesregu-larlysponsoredbythepublicsectororinwhichthepublicsectorhasownership rights.Furthermore,EasterandChristmaswelfarebenefitsandtheannualbenefitofpaidleavehavebeensetate250to e500each,subjecttothepublicemployeereceivingagrosstotalpay lower than e300permonth,accordingtoarticle3ofLawNo.3845/2010.NewdecreasesinwagesandbenefitstookplaceundertherecentlyvotedLawNo.3899/2010.ByvirtueoftheveryrecentNo.6ActofMinisterialCouncil,for

theimplementationofparagraph6ofarticle1ofLaw4046/2012,theregulatoryconditionsofcollectivelabouragreementsthathavealready expired or that have been terminated are valid only for a periodofthreemonthsfromthetimethatLaw4046/2012hasbeenin force. After that period and if in the meantime no new collective labouragreementissigned,thentheonlyregulatoryconditionsthatremaininforcearethosethatarerelatedtothebenefitsofmatura-tion,children,educationanddangerouswork,undertheconditionthatthosebenefitswereactuallyprovidedforinthecollectivelabouragreements that have expired or been terminated. Any other pre-scribed benefit shall be immediately terminated.



23 Are there any special rules relating to part-time or fixed-term

employees?

Employment under rotation (or underemployment) Thisisfull-timework,butonlyforcertaindaysoftheweek,certainweeks of the month or certain months of the year, or a combina-tionofthesealternatives.Thedailyworkinghoursremainfull.Thisisfreelyagreedbetweenanemployerandanemployee,subjecttotheapplicable statutoryminimumsalaries,appliedaccordingly tothelesserhoursofworkagreed.AccordingtoLawNo.3846/2010,articletwo,paragraphthree,asamendedbyarticle17,paragraph1ofLaw3899/2010,anagreementforunderemploymentmustbeinwritingandmustbesubmittedtothelocalLIA.Underemploymentmayalsosubsequentlyoccurfollowingasignificantdecreaseintheemployer’sbusinessactivitiesandsubjecttoanagreementwiththecompetentlabourunion.Inthiscase,thedurationoftheunderem-ploymentmustnotexceedninemonthsofthesameyear.

Temporary employment (part-time employment)Thisisemploymentforalldaysbutforfewerhoursthantheordi-narystatutoryprescribedworkingschedule.Itissubjecttothesameproceduralformalitiesastheemploymentunderrotation(article38ofLaw1892/1990,asamendedbyarticle2ofLaw3846/2010).Thedisclosureofthepart-timecontracttotheLIAmustbemadewithineight days from the day on which it was signed, otherwise it is pre-sumed to conceal a full-time employment contract.The part-timeemployee, provided that he or she performs work on the same terms asemployeesofthesameclass,hasarightofprioritytoberecruitedtoafull-timejobinthesamecompany.Terminationoftheemploy-mentcontractduetothenon-acceptanceoftheemployer’sproposalfor a part-time employment by the employee is invalid. It is noted that the earnings of employees with a part-time employment contract arecalculatedonthebasisoftheearningsofacomparableemployeeandcorrespondtothehoursofthepart-timeemployment.Ifthepart-timeemploymentislessthanfourhoursperday,theremunerationofthepart-timeemployeesisincreasedby7.5percent.

Fixed-term employment contractsThesearefreelyagreedupon,subjecttotheconditionthatthemean-ingof‘fixedterm’mustnotbeabusivelyadoptedbyanemployerwhoinrealityintendstocoverhisorherpermanentneeds(seeques-tion10).

Post-employment restrictive covenants

24 To what extent are post-termination covenants not to compete, solicit

or deal valid and enforceable?

Although not explicitly prohibited, the validity of contractualclausesnottocompetemustnotbetakenforgranted;theseclausesarecontrolledaccordingtoarticles178(contractualtermcontrarytomoralstandards)and179(contractualtermlimitingtoagreatextentthefreedomoftheweakcontractualparty)oftheCivilCode,followingan evaluationof all the special conditionsof each spe-cificcase.Onebasicelement,whichsupports thevalidityof suchaclause,istheprovisionofconsiderationtotheemployeefortheundertaking of the obligation of non-competition that, as a rule,will be constitutedby thepayment of a reasonable restitution tocoverthefinancialdamagethattheco-contractingpartywillendureduringthecommittingperiod.Inpractice,averyhighsalarymayjustifyapost-terminationcovenantnottocompete.Conversely,thelack of provision of consideration is a very important element that wouldassist theweakerparty to challenge thevalidityofanon-competitionclause.Thereisnostatutorymaximumperiodfornon-competitioncovenants,butacourtwillassessthereasonablenessofthe period agreed.

25 Must an employer continue to pay the former employee while they are

subject to post-employment restrictive covenants?

No,thereisnosuchrule.However,inorderforpost-employmentrestrictive covenants to survive the anti-abuse test that will beappliedbythecourts,anyconsideration(payment,etc)giventotheemployeewillcountintheemployer’sfavour.InGreece,inpractice,suchconsiderationwouldbeahighersalary(duringemployment)and not a payment after the employment is terminated.

Liability for acts of employees

26 In which circumstances may an employer be held liable for the acts or

conduct of its employees?

Accordingtothegeneralprovisionofarticle914oftheCivilCode,anyonewhounlawfullydamagesanotherpersonisobligedtocom-pensatehimorher.Accordingtoarticle922of theCivilCode,amasterormistresswouldbeliableforanydamagesthathisorherservantcausedtoathirdpartybyhisorheractsoromissionsduringservice. By the combination of the above-mentioned provisions, it arisesthatunderthesamecircumstancesthatanemployerisliableforcompensationtoadamagedpartybecauseofitsownactionsoromissions, it will also be liable for the actions or omissions of its employees.

Taxation of employees

27 What employment-related taxes are prescribed by law?

Payment of income tax burdens employees, but employers areobligedbylawtodeductthetaxfromtheemployees’wageandtodisburseitrespectivelytothecompetenttaxofficewithinthefirstfortnightofeachtrimester.Thecalculationofthetaxthatemploy-ers are obliged to deduct is the following (article 1 of LawNo.3522/2006):regardingemployeesthatarepaidpermonth,aswellasthosepaideachdaywhoprovidetheirservicesunderanemploy-mentcontractformorethanayeartothesameemployerorunderan open-ended contract of employment, the monthly net income is definedbydeductingfromthegrosswageonlytheamountsofthelawfuldeductionsforobligatoryinsurancecontributionsforwhichtheemployeeisburdened.Thedefinitionof‘monthlynetincome’includesbothsalaryandanyotherpaypacketsofthesameperiod(overtime,workingonabankholidayoraSunday,etc),whichareall set in one payroll. Afterwards, every month the monthly net incomeisreadjustedtodefinetheoverallannualnetincomeofeveryemployee.Tocalculatetheoverallannualnetincome,thenetsalaryamountismultipliedby12,towhichisaddedaChristmasbonus,Easterbonusandholidaybenefits.Anyotheradditionalpaypack-agesarealsoaddedtothecalculation.Afterwards,theamountoftaxthathastobedeductediscalculatedaccordingtotheapplica-bletaxscales.Inpractice,iftheemployeehasnoothersourcesofincome,followingthesubmissionofhisorherannualtaxreturn,therewillnobefurthertaxtobepaid.

Moreover, independent taxation is imposed on compensa-tion paid to employees when they are dismissed and on vacation allowance.

Employee-created IP

28 Is there any legislation addressing the parties’ rights with respect to

employee inventions?

Thisusedtobegovernedbyarticle668oftheCivilCode,whichhasnowbeenabolished.Theapplicableruleisnowprovidedinarticle6ofLawNo.1733/1987,accordingtowhichallrightsrelatedtoan



invention of an employee belong to the employee, except where the invention may be classified as:• an‘inventionofservice’,inwhichcasetherightsbelongexclu-sivelytotheemployer;or

• a‘dependedinvention’,inwhichcasetherightsaresplit,with40per cent going to the employer and 60 per cent to the employee.

‘Inventionofservice’istheproductofthecontractualrelationshipbetween an employer and an employee that is expressly aimed at the development of inventions. In cases of ‘invention of service’, an employeemaybeentitledtoadditionalremunerationiftheinven-tion is significantly profitable for the employer.

A ‘depended invention’ is an invention realised by an employee withtheuseofthemeans,informationandmaterialsoftheemployer.Inthissituation,theemployerhaspriorityovertheexploitationofthe invention in exchange for compensation given to the employee relative to the economicvalueof the invention.After completinghisorherinvention,theemployeemustnotifyhisorheremployeraccordinglyandtheemployerhasatimelimitoffourmonthsafterthenotificationtodeclareitsintentiontosubmitacommonapplica-tion together with the employee for the registration of the invention. Failureof theemployer todeclare its intentionwithin theabove-mentionedperiodgivesarighttotheemployeetosubmitanapplica-tion by him or herself and register and exploit the invention in his orherownnameandaccount.Anemployeemaynotcontractuallywaive any of his or her rights mentioned above.

Data protection

29 Is there any legislation protecting employee privacy or personal data?

If so, what are an employer’s obligations under the legislation?

Yes,LawNo.2472/1997(theDataProtectionLaw),asamendedby Law No. 3471/2006, protects employee personal data. Anemployer isobliged toannounce to theDPAthepossessionofadatabase, the transfer of a third party’s database, the interconnec-tionofdatabasesandtheexistenceofaclosed-circuitTVsystem.When data is related to sensitive information (information thatreferstothereligious,philosophical,national,politicalbackgroundorbeliefs,sexuallife,previouscriminalconvictions,health,socialwelfare,etc,ofanemployee),theLawrequirespriorapprovalbytheDPA.Forpracticalreasons,theLawalsoprovidesforexcep-tionsfromtheseobligations–forexample,wheretheprocessingisrealisedforthepurposesofanemploymentrelationshiporwherethisprocessisnecessaryforthemutualfulfilmentofcontractualorlegal obligations and the employee has been informed in advance. The employer, at the stage of the collection of personal data, is obliged to inform the employee of the exact identification details of theemployerorhisorherrepresentative,thepurposeofprocessingpersonaldataandtherecipientsofsuchdata.Theemployeemustalso be informed that he or she has a right of access to his or her personal data file and a right to deny the processing of his or her personal data.

Business transfers

30 Is there any legislation to protect employees in the event of a

business transfer?

In the event of a corporation being transferred, the relevant impact on labour relations is regulated by article 4(1) of PresidentialDecreeNo.178/2002,throughwhichGreecehasadoptedDirective98/50/EC. Inparallel, article6(1)ofLawNo.2112/1920, article9(1)ofRoyalDecreeNo.16of18July1920andarticle8ofthePresidentialDecreeof8December1928(regardingtheprotectionoftherightsofemployeesofpublicorder,wherenowaiverofrelevant

rightsisexcused)arealsoinforce.Bythecombinationoftheabove-mentioned provisions, it is provided that: • theprotectionoftheemployeeisnotlimitedtotheprotectionoftherightofcompensationaccordingtoLawNo.02112;

• the new employer assumes all the pre-existing employer’sobligations;

• thelabourrelationshipispreservedinitsentirety;and• theemploymentpositionissecuredandtheemployee’sdemo-

tion is forbidden.

Termination of employment

31 May an employer dismiss an employee for any reason or must there

be ‘cause’? How is cause defined under the applicable statute or

regulation?

Employment contracts of an indefinite time can be terminated withoutrestraintsandatanytimebytheemployer,providedthathe or her abides by the legal formalities, that is, notification to the employee of the written termination of the employment contract andpaymentofthelawfulcompensation.Intheeventofthedura-tionoftheemploymentcontractbeinglessthan12months(‘trialperiod’,accordingtoarticle17,paragraph5ofLaw3899/2010),theemployermayterminatethecontractwithoutanyformalities,having no obligation to give compensation to the employee.Fixed-termemploymentcontractsterminateipsojure,without

the obligation of compensation or of any other action, when their fixeddurationexpires.Nevertheless,intheeventofaseriousreasonthatcouldjustifytheterminationoftheemploymentcontractbeforeits expiry date, the employer (and the employee) may terminatethe employment contract before that date,without recovery.Thelawdoesnotspecifywhichreasonsmaybeconsideredasserious;thereforethisislefttothejudgementofthecourt.Anyeventthatobjectively, according to good faith and moral conventions, consti-tutesabreachoftheessentialtermsoftheemploymentcontract,andbecauseofwhichtheemploymentrelationshipmaynotreasonablycontinueuptoitsexpirydate,maybeconsideredasaseriousreason.Indicatively,caselawhasinthepastconsideredasseriousreasonsthe following:• breachbytheemployeeofessentialtermsofthecontract;• continuousandunjustifiableabsenceoftheemployee;• improperandabusivebehaviouroftheemployeetowardshisorheremployer;

• non-fulfilmentofhisorherworkwithassiduity;and• demonstrationofprofessionalinsufficiency.

Theinvocationonthepartoftheemployerofaseriousreasoniscon-trolledunderGreeklaw(article281oftheCivilCode).Accordingtothis article, exercising a right is prohibited if it manifestly exceeds the limits imposed by good faith or morality or the social and economic purposeoftheright.Indicatively,caselawhasinthepastconsideredasseriousrea-

sons the following:• theemployeewasdismissedbecauseheorsherefusedtogiveuphisorherlegalrights;

• theemployeedevelopedhisorhertradeunionactionandtookpartinalawfulstrike;

• theemployeesubmittedforaperiodoffworkaccordingtothelaw;or

• theemployeeprotestedtothecompetentgovernmentauthoritiesfor violations of the law by the employer.

In the case of such an abusive andunfair cause the employmentcontract is considered as not terminated and the employee still has right to the salary as provided by the law.



31 Must notice of termination be given prior to dismissal? May an

employer provide pay in lieu of notice?

This is only applicable to employment contracts of indefinite term. Compensationiscalculatedaccordingtotheyearsofserviceatthesame employer and if the appropriate notice is given, it may be half ofwhatwouldbeifnonotice isgiven.Accordingtothenewaw(4093/2012),subjectsrelatingtothenoticeoftermination,aswellasofthecompensation,areregulatedasfollows:

Length of employment with same employer

Without advance notice

With advance notice

Compensation (times nominal

salary)

Advance notice

Compensation (times nominal

salary)

1 year completed to 2 years

2 months 1 month 1 month

2 years completed to 4 years

2 months 2 months 1 month


3 months 2 months 1.5 months




4 months 3 months 2 months



10 years completed 6 months 4 months 3 months

11 years completed 7 months 4 months 3.5 months






17 years completed12 months + 1 month

4 months6 months

+ 0.5 month

18 years completed12 months + 2 months

4 months6 months + 1 month


4 months6 months

+ 1.5 months


4 months6 months

+ 2 months


4 months6 months

+ 2.5 months


4 months6 months

+ 3 months


4 months6 months

+ 3.5 months


4 months6 months

+ 4 months


4 months6 months

+ 4.5 months

26 years completed12 months

+ 10 months4 months

6 months + 5 months

27 years completed12 months

+ 11 months4 months

6 months + 5.5 months

28 years completed and further

12 months + 12 months

4 months 6 months + 6 months

Note1 Employment contracts of indefinite duration will be deemed probation-

ary for the first 12 months from the date of effect and may be terminated without prior notice and without dismissal compensation, unless other-wise agreed by the contracting parties.

2 For the calculation of extra compensation provided for the employers of 17 completed years of experience, a regular salary over €2,000 is not taken into account.

33 In which circumstances may an employer dismiss an employee without

notice or payment in lieu of notice?

Employmentcontractsoffixedtermareterminatedupontheirexpi-rationdate,withoutanyformalitiesneededandofcoursewithoutany compensation paid to the employee.Furthermore,asmentioned inquestion31, intheeventof the

indefinite-termemploymentcontractbeinglessthan12months(‘trialperiod’,accordingtoarticle17,paragraph5ofLaw3899/2010),theemployermayterminatethecontractwithoutanyformalities,havingno obligation to give compensation to the employee.

Finally, the employer may terminate an employment contract of indefinitetermwithoutpriornoticeandwithoutanycompensation,inthecaseofasubmissionofalawsuitagainsttheemployeeforanoffencecommittedinthecourseofhisorherservice(article5,para-graph1ofLaw2112/1920).

34 Is there any legislation establishing the right to severance pay upon

termination of employment? How is severance pay calculated?

Seequestion32.Uponterminationwithoutdismissal,forexample,upontheexpiryofafixed-termemploymentrelationship,thereisnoright to severance pay.

35 Are there any procedural requirements for dismissing an employee?

Adismissalmustbemadeinwritingandanycompensationowedtotheemployeemustbepaidupondismissal,otherwisethetermi-nationoftheemploymentcontractisnotvalid.AccordingtoLawNo.3863/2010article74,paragraph3,whenthecompensationfortermination of the contract exceeds the salary of two months, the employermustpaytothedismissedemployee,atthetimeofdis-missal, part of the compensation, corresponding to salaries of two months.Theremainingamount ispaid inbimonthly instalments,each of which cannot be lower than earnings of two months, except thelastinstalment,whichcanbesmaller.Thefirstinstalmentmustbe paid the day after completing two months of the dismissal. A notificationofthedismissalmustbefiledwiththecompetentorgani-sation for the employment of workforce or, if there is no competent officeinthevicinity,atthelocalpolicestation.Nopriorapprovalbyanyauthorityisrequiredforthedismissal.

36 In what circumstances are employees protected from dismissal?

In principle, an employer is entitled to dismiss employees freely. The following categories are generally protected:• employeeswhoareonleave;• employeeswhoareservingtheirmilitaryservice;• pregnantwomen,duringtheirpregnancyandforoneyearafterthebirth;

• drugaddicts,providedthattheyparticipateinaprogrammefortheircure;and

• tradeunionistswithoutfollowingaspecialprocedureprescribedby law.

Allemployeesareprotectedagainstunfairdismissal,interalia,inthefollowingcircumstances:• whendismissalisattributedtotheirsexorfamilystatus;• whendismissalisattributedtothehostileorvengefulbehaviour

of the employer following any form of harassment to which the employeedidnotconsent;and

• whendismissal isattributedtothefactthattheemployeehasconfessedlawfullyinacourtoflaworotherauthority.



37 Are there special rules for mass terminations or collective dismissals?

Yes. Mass terminations or collective dismissals are defined as dis-missals realised by companies that employ at least 20 employees, thereasonsforwhicharenotattributabletotheemployeesandthatexceedcertainnumericallimits.Theprotectiveprovisionsinrelationto collective dismissals only apply to employment contracts of an indefinite term. Mass terminations or collective dismissals must take place

withinthelimitssetbythelaw.Thus,thelimitsbeyondwhichthedismissalsareconsideredabusiveare(accordingtoarticle74,para-graph1ofLawNo.3863/2010)uptosixemployeesforcompaniesthatoccupyfrom20upto150employees;andupto5percentofthepersonnelandupto30employeesforcompaniesthatoccupymorethan150employees.

An employer who wishes to proceed to collective dismissals mustcomplywiththefollowingproceduralsteps:• informtherepresentativesoftheemployeesaboutitsintentionand discuss them in order to investigate possible alternativesolutions;

• notify inwritingtheemployee’srepresentativesofthereasonsforwhichthecollectivedismissalsareplanned,thenumberofpeopleemployedintotal,thenumberofemployeesthataretobe dismissed classified by sex, age and specialisation and any usefulinformationthatmayhelpthepropositionofalternativesolutions;and

• submittheabove-mentioneddocumentstotheprefectandLIAofficial.

The above procedures are followedwithin time limits prescribedinstatute.Ifthereisnoagreementbetweentheemployerandtheemployees,theprefectortheministeroflabourmaynotconsenttothecollectivedismissals;inthelattercase,theemployershalllimitthedismissalstothenumberofemployeeslimitedbytheprefect’sorminister’s decision. If the relevant prefect’s or minister’s decision is notissuedwithintheprescribedtimelimits,theemployermayfreelydismissthenumberofemployeesthatititselfagreedtoduringthenegotiations with the employees.

In all other respects, the provisions regarding dismissal of employeesemployedunderacontractofindefinitetermapply(writ-tennotice,compensation,etc).

38 Are class or collective actions allowed or may employees only assert

labour and employment claims on an individual basis?

Accordingtoarticle668ofCodeofCivilProcedure(CCP),duringtheprocedureunderarticles664to676(labourdisputes)morethanoneemployeemay sueorbe suedwhen the rightsorobligationsderiveonlybythesamelegalcause.Furthermore,article669of theCCPprovides thatrecognised

professional trade unions of employees or employers, recognisedassociationsofthemorchambershavetherighttoexerciseinfavourof their members the rights that derive from a collective agreement orotherprovisions in lieuof the collective agreement,unless themembershaveexplicitlyexpressedtheiropposition.However,they

maintaintherighttointerveneinfavourofapartyifthispartyisamember of them or member of any of the organisations, belonging totheassociation;orinanyproceedingsrelatingtotheinterpreta-tion or application of a collective employment contract in which theyparticipate,orofaprovisioninlieuoftheprovisionsofsuchacollective agreement, in order to protect the collective interest that is connectedtotheoutcomeofthetrial.

39 Does the law in your jurisdiction allow employers to impose a

mandatory retirement age? If so, at what age and under what

limitations?

UnderGreeklegislation,thereisnoprovisionrequiringemployeestoceaseworkwhentheyhavecompletedtherequirementsnecessarytoreachretirementage;anemployee’sreachingretirementageshallnotresultintheautomaticterminationoftheemploymentrelation-ship between the employee and his or her employer. Provision is made within the law for a separation from employment or dismissal inreturnforreducedcompensationundercertainconditions.

Dispute resolution

40 May the parties agree to private arbitration of employment disputes?

No.Accordingtoarticle867oftheCCP,privatelawdisputesmaybesubjecttoarbitrationifthepartieswhoagreetoarbitrationhavethepowertofreelydisposeofthesubjectmatterofthedispute,butthearticleexpresslyexcludesalldisputesgovernedbyarticle663oftheCCP,thatis,employmentlawdisputes.Theselatteraresubjecttospeciallitigationproceduresthatareprovidedinarticles664to676 of the CCP. Forissuesconcerningtheprocedureofresolvingcollectivedis-

putes,ifthenegotiationsfail,thepartieshavetherighttorequestmediation services or to resort to arbitration, according to the pro-ceduredescribedinLawNo.3899/2010(articles14to17).

41 May an employee agree to waive statutory and contractual rights to potential employment claims?

Accordingtoarticle679oftheGreekCivilCode,anemployeemaynotagreetowaivethespecificstatutoryrightsthatareprovidedinarticles656to658,659(2),667,668(2),670,674,677and678.The most important of these rights are:• therighttoreceiveasalarywheretheemployerisindelayofpayment;

• therighttoreceiveasalarywhentheemployeeispreventedfromofferinghisorherservicesforseriousreasons;

• rightstoadditionalpaymentforadditionalwork;• therighttoannualleave;and• therighttoterminatethecontractofemployment.

Also, it may not be agreed that an employer can offset an employ-ee’s salary against debts of the employee and that an employer has

In the fifth year of recession in Greece, the hottest employment topic is the unemployment rate, which reached a rate above 25 per cent and is now the highest among the eurozone countries. Another popular topic is the statutory minimum salary, currently set at e586, and the debate as to whether it could be set lower than this amount. Employment lawyers are busier dealing with cases of unpaid employees of bankrupt businesses rather than with drafting or reviewing employment contracts. Although not strictly within the

scope of this book, the debate regarding the possibility of dismissing public servants (who enjoy a status of permanence by virtue of the constitution) is also an employment law issue (apart from a political and constitutional one). In the meantime, structural reforms are also taking place in the following areas: the unification of the social security institutions and the electronic submission of all forms relating to employment and social security contributions.

Update and trends



no responsibility for the implementation of health and safety at workregulations.

42 What are the limitation periods for bringing employment claims?

Thegeneralstatuteof limitationsisfiveyears,byvirtueofarticle250(17)oftheCivilCode.However,otherprovisionsofspecial lawsprovide forspecific

limitationperiods,concerningseveralemploymentclaims,suchas:

• any employee claimarising from invalidityof the agreeddis-missalmustbeservedbylawsuittotherelevantemployerwithinthe mandatory three-month period following termination of the employmentrelationship,otherwiseitisinadmissible(article6paragraph1ofLaw3198/1955);and

• anyemployeeclaimforpaymentorcompletionofthecompen-sationdue todismissal, according toLawNo.2112/1920orRoyalDecree16/18.07.1920,isunacceptableifthattreatmentwas not disclosed to the employer within six months after it becamedue(article6,paragraph2ofLaw3198/1955).

Theodoros Skouzos

43 Akadimias Street Tel: +30 210 3633243

10672 Athens Fax: +30 210 3633461

Greece [email protected]

www.taxlaw.gr

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labour & employment 2013 ISSn 1744-0939

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Annual volumes published on:

For more information or to purchase books, please visit: www.GettingTheDealThrough.com

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Labour & Employment in 42 jurisdictions worldwide 2013 · United Kingdom Matthew Howse and Sarah...

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