1. Initiating the Employment Contract 🚀

Offer and Acceptance: In Greece, an employment contract is established once the employer extends a job offer, and the employee accepts it. While verbal agreements are legally recognized, a written contract is strongly recommended to ensure clarity and legal protection for both parties. A written contract helps avoid misunderstandings and provides evidence in case of disputes.

Contract Documentation: Greek labor law mandates that employers provide a written agreement to the employee outlining key contract details. While formal contract documentation isn’t required for short-term jobs (under one month), it’s highly advisable for both parties’ security. Key elements of the contract typically include:

• Job Title & Description: A clear outline of the employee’s role and responsibilities.
• Working Hours & Breaks: Defined work hours, rest periods, and any flexibility in hours.
• Salary: The agreed-upon salary and any additional bonuses or benefits.
• Benefits: Information about social security, health insurance, pension contributions, and any additional benefits provided by the employer.
• Probation Period: Many contracts include a probationary period, which generally lasts up to 3 months, allowing both the employee and employer to assess the fit.

2. Key Elements in Employment Contracts 📝

• Job Title & Responsibilities: The contract must detail the employee’s position and specific duties, ensuring both parties are clear about their expectations and obligations.

• Work Location & Mode: Contracts should specify whether the work will be conducted on-site, remotely, or under a hybrid model.

• Type of Employment: Employment contracts in Greece can take several forms, including:

  • Permanent (Indefinite-Term): A long-term contract providing full rights and benefits.
  • Fixed-Term (Temporary): For specific tasks or a predetermined duration, typically lasting up to 2 years. Beyond that, the contract may convert to a permanent one.
  • Part-Time: For employees working fewer hours than full-time. Benefits are proportional.
  • Internship: Temporary contracts for students or recent graduates, often with fewer benefits.

• Working Hours & Overtime: The standard working week in Greece is 40 hours, typically spread across 5 days (Monday to Friday). Overtime is compensated at a higher rate, usually 1.5 times the regular hourly rate, and can increase if performed on public holidays or outside regular hours.

3. Compensation and Benefits 💵

Compensation Breakdown: Greek labor law outlines several mandatory components related to compensation and benefits. Here is a typical example of how compensation is structured in Greece:

Example of Compensation:

Mandatory Components:

4. Additional Considerations 🔍

• Employment Contract Renewal: Fixed-term contracts in Greece may be renewed or converted into indefinite contracts, provided the terms are agreed upon by both parties. A contract automatically becomes indefinite after 2 years if renewed.
• Collective Agreements: Certain sectors in Greece, such as manufacturing or public services, may have collective bargaining agreements that provide additional benefits or job security beyond the statutory labor laws.
• Non-Compete Clauses: Non-compete clauses are valid in Greece but must be reasonable in duration and geographic scope. Typically, these are enforceable for up to 2 years, and compensation is often required during this period.
• Tax Considerations: Employers in Greece must withhold income tax, pension, and social security contributions from employees’ salaries. Employees may also benefit from tax exemptions or deductions based on their income level.

5. Termination of Employment 🔚

Voluntary Termination (Resignation): Employees are required to give notice before resigning. The notice period depends on the employee’s length of service:

• Less than one year: 1 month
• 1-5 years: 2 months
• More than 5 years: 3 months

Involuntary Termination (Dismissal): Employers must provide a valid reason for termination, such as performance issues or economic necessity. Severance pay is required in the event of unfair dismissal, with amounts depending on the employee’s tenure. Employees who are dismissed without just cause may receive compensation equal to one month’s salary for every year worked.

Redundancy: Employees who are laid off due to business restructuring or redundancy are entitled to severance pay. The amount is calculated based on years of service, with employees entitled to a minimum of 1 month’s salary per year worked.

6. Dispute Resolution ⚖️

Internal Mediation: Many Greek companies have internal grievance procedures in place to address minor disputes, helping avoid formal legal intervention.

Labor Mediation Services: The Greek Ministry of Labor offers mediation services to resolve disputes related to labor issues, including wrongful termination, wage disputes, and more.

Labor Courts: Serious employment disputes, such as wrongful termination or unpaid wages, can be taken to labor courts for resolution.

Ministry of Labor: The Greek Ministry of Labor plays a vital role in enforcing labor laws and can intervene in cases where employees’ rights are violated.

Summary Table of Key Aspects of Employment Contracts in Greece

Key Takeaways:

• Written contracts are essential to define roles, responsibilities, and benefits.
• Employees are entitled to holiday bonuses and severance pay, providing added security.
• Social security contributions (health insurance, pension) are mandatory for all employees.
• Overtime pay is strictly regulated, and employees must be compensated fairly for extra hours worked.
• Greek labor laws offer strong protections for employees, ensuring fair treatment during termination or resignation.