When hiring in Greece, businesses must comply with national labor laws, particularly Law 4808/2021 and Law 3863/2010, which regulate employee rights and employer obligations. The most critical step is ensuring the employment relationship aligns with Greek labor regulations, which emphasize transparency, fair treatment, and compliance with collective agreements.
What Employment Contracts Are Permissible in Greece?
- Permanent (Unlimited) Contract
- Fixed-Term Contract
- Part-Time Contract
- On-Demand (Intermittent) Contract
- Apprenticeship and Internship Contracts
- Employer of Record (EOR) Services (via a third-party employer like Globaine)
1. Permanent (Unlimited) Contract
A permanent contract (also known as an indefinite-term contract) is the standard and preferred type of employment arrangement under Greek law. It offers job security until termination or retirement and includes employee protections under Article 656 of the Greek Civil Code.
Key Features:
- Preferred standard contract type for full-time and part-time employment.
- No predetermined end date.
- Mandatory probation of up to 6 months under Law 5053/2023.
- Employers must give 30 days’ notice for termination after the probation period.
- Severance pay applies if the employee is dismissed (Art. 674 of the Civil Code).
Legal Reference:
- Law 4808/2021 (Article 61) – Indefinite contracts
- Greek Civil Code (Articles 648, 656, 674)
2. Fixed-Term Contract
A fixed-term contract is used for roles with a specific end date, such as seasonal work or project-based employment. Under Article 677 of the Greek Civil Code, these contracts must have a legitimate reason for the fixed term; otherwise, the contract is deemed to be a permanent contract.
Key Features:
- Maximum duration of 3 years, including renewals.
- If a fixed-term contract is renewed more than 3 times, it becomes a permanent contract.
- The probation period is a maximum of 6 months.
- Early termination before the contract’s end date requires the employer to pay the employee’s remaining wages until the end of the contract.
Legal Reference:
- Law 4808/2021 (Article 62) – Fixed-term contracts
- Greek Civil Code (Article 677) – Conditions for fixed-term contracts
3. Part-Time Contract
A part-time contract offers flexibility to both employers and employees. Part-time work must be recorded in the ERGANI Information System as required by Law 4808/2021.
Key Features:
- Employees work fewer than 40 hours per week.
- Part-time employees are entitled to pro-rata salary, leave, and social benefits.
- Contributions to Social Security (SS) are calculated on the actual remuneration received.
Legal Reference:
- Law 4808/2021 (Article 62) – Part-time employment
- Greek Civil Code (Articles 648, 656)
Labor Law Key Notions
Working Hours:
- Standard workweek: 40 hours per week (8 hours per day).
- Overwork: From 41 to 45 hours/week — Compensated at 120% of the hourly wage.
- Overtime: Above 45 hours per week — Compensated at 140% of the hourly wage.
Mandatory Payments:
- 13th & 14th month salary is mandatory for all employees in Greece.
- WFH Allowance: Minimum of EUR 28/month for employees working remotely.
Additional Changes Under Law 5053/2023:
- Reduced probation period from 12 months to 6 months.
- Right to work for multiple employers — Employees can now work for other companies unless a conflict of interest exists.
- Absence of 5+ days without notice is considered an automatic resignation.
- Salary Increase: Employees are entitled to a salary increase of at least 10% every 3 years up to 9 years of employment.
Frequently Asked Questions (FAQs)
What happens if an employer does not issue a written contract?
If an employer fails to provide a written contract, the employee is presumed to have an indefinite-term contract with all associated protections. Employers may also face administrative penalties.
What is the maximum probation period for employment contracts in Greece?
As of Law 5053/2023, the probation period is a maximum of 6 months for all employment contracts.
How much notice must an employer give to terminate an employee in Greece?
Notice periods vary by tenure:
- Less than 12 months: No notice required.
- 1 to 2 years: 1 month notice.
- 2 to 5 years: 2 months notice.
- 5 to 10 years: 3 months notice.
- More than 10 years: 4 months notice.
Can foreign companies hire directly in Greece?
Foreign companies can hire employees in Greece, but they must either establish a local entity or use an Employer of Record (EOR) to remain compliant with Greek labor laws.
Are part-time employees entitled to the 13th and 14th month salaries?
Yes, part-time employees are entitled to pro-rata payments of the 13th and 14th month salaries.
How Globaine Can Help with EOR Services in Greece
Globaine PEO simplifies hiring, onboarding, and employment contract management in Greece. We ensure your business complies with all aspects of Greek labor law, including payroll, social security, and employment contracts.
Our Services Include:
- Drafting employment contracts compliant with Greek labor laws.
- Handling payroll, taxes, and social security.
- Providing Employer of Record (EOR) support for seamless hiring.
With Globaine PEO, you can ensure full compliance with Greek labor laws while focusing on business growth. Contact Globaine to learn more.
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