This guide cuts through the noise to deliver actionable clarity on hr and compliance in Greece, from drafting ironclad employment contracts to mastering termination rules post-probation. Dive into Greece’s digital work card system, evolving leave policies, and anti-discrimination mandates, while uncovering strategies to avoid costly penalties.
Whether you’re navigating six-day workweek flexibility or cross-border team management, this resource equips you to transform compliance into a strategic asset, ensuring stability in a market where 85% of disputes stem from misinterpreted labor codes.
Recent Labor Reforms In Greece: What Multinational Corporations Must Know
Greece’s 2025 reforms allow 13-hour workdays (37/year) with 40% overtime premiums and six-day weeks in tourism. These balance flexibility amid €780 minimum wages and 8% unemployment.
Critical Compliance Requirements For International Employers
Written contracts (max 36 months), 12-month probation, EFKA contributions (24.81% employer, 15.75% employee) apply.
Annual leave: 20-25 days. Sector-specific agreements override standard rules.
Navigating Employment Contracts and New Digital Compliance in Greece
The Foundation: Written Employment Contracts
Greek labor law prioritizes written employment contracts to ensure legal clarity, though oral agreements remain valid for part-time or fixed-term roles. Law 5053/2023, transposing EU Directive 2019/1152, mandates that employers deliver comprehensive terms within seven days of employment commencement. This reform addresses disputes over ambiguous working conditions while aligning Greece’s labor practices with EU-wide standards.
For multinational employers, adherence to these terms is critical: non-compliance risks fines up to 10,500€ per employee for unregistered contracts or missing clauses. Trial periods for permanent roles can last up to six months, with fixed-term contracts limited to three renewals before automatic conversion to indefinite status. Clear documentation mitigates risks of misclassification claims or litigation, particularly in sectors like hospitality where hybrid work arrangements are rising.
Essential Terms Required by Law
Greece’s labor code specifies 10 mandatory contractual elements to ensure transparency:
- Parties’ identities: Full names and addresses prevent anonymity in disputes, especially for remote workers.
- Workplace details: Primary address and secondary locations, vital for roles with flexible or multi-site responsibilities.
- Role clarity: Precise job titles or descriptions to avoid misclassification, such as distinguishing between freelance and full-time roles.
- Start date: Establishes tenure, eligibility for benefits, and seniority calculations.
- Contract duration: Fixed-term agreements must specify end dates to prevent automatic conversion to permanent contracts.
- Paid leave: Minimum 20 annual days, plus provisions for maternity/paternity, sick leave, and public holidays.
- Termination notice: Varies by contract type; for indefinite contracts, at least one month’s notice is standard.
- Salary structure: Base pay, bonuses, and frequency (typically monthly) must be explicit, with 95% of roles paid monthly.
- Working hours: Standard 40-hour week, with overtime capped at 8 hours weekly; non-compliance triggers 3,000€ fines per employee.
- Collective Labour Agreements (CLAs): Over 300 active CLAs influence wages, requiring explicit reference in contracts to avoid underpayment claims.
The Digital Shift: Understanding the Digital Work Card
Greece’s Digital Work Card (Ψηφιακή Κάρτα Εργασίας) integrates with the ERGANI II government portal, tracking real-time attendance via the myErgani app. Employees generate QR codes, which employers scan via Ergani CardScanner, syncing data to ERGANI II for instant oversight. Implemented in phases since 2022 (banks and supermarkets first), the system will fully cover tourism and hospitality by March 2025. By digitizing time tracking, it combats undeclared labor—affecting 12% of Greece’s workforce pre-2023—and ensures accurate overtime compensation.
Non-compliance risks include 10,500€ fines per employee for unregistered systems, 3,000€ for mismatched schedules, and 2,000–4,000€ for data retention failures. Employers must secure employee co-signature via gov.gr credentials to validate records, ensuring mutual accountability.
For remote teams, the system accommodates variable hours, but employers must activate “flexible arrival” settings to avoid 2,000€ penalties. Beyond compliance, this tool enhances operational efficiency, positioning Greece as a regional leader in labor tech innovation while protecting worker rights and tax revenue. By 2025, full adoption will standardize practices across 80% of the private sector.
Understanding working hours, leave, and compensation for HR compliance
Working hours and the six-day work week reform
Greece’s standard workweek remains 40 hours over five days. Law 5053/2023 allows select industries to adopt a six-day week under strict conditions. This applies to 24/7 operations like manufacturing and retail but excludes hospitality. Employers must pay a 40% premium for the sixth day, capped at 8 hours, and notify labor inspectors beforehand.
The government argues this law addresses labor shortages and formalizes overtime, but critics warn of exploitation risks. Greece already reports Europe’s longest average workweek (41 hours) and third-lowest wages in the OECD. Unions, including the General Confederation of Labor, condemn the reform as “barbaric,” citing increased accident risks and eroded work-life balance. The law’s economic impact remains debated, with some experts noting it could reduce informal labor but may strain low-wage workers. For compliance details, Global HR Compliance in Greece provides guidance.
Mandatory leave policies and social security
Greece’s HR compliance framework guarantees structured leave entitlements. Employers must register with e-EFKA, the unified social security body, to manage contributions covering pensions, healthcare, and unemployment benefits. Below are key leave types:
| Type of Leave | Standard Duration | Key Conditions & Notes |
| Annual Leave | 20–30 days/year | Accrues over time; unused days expire by Q1 next year. |
| Sick Leave | Varies by tenure | Employer pays initial days; e-EFKA covers later. Medical proof required. |
| Maternity Leave | 17 weeks | 8 weeks pre-birth, 9 post-birth. Fully funded by e-EFKA. |
| Paternity Leave | 14 working days | Must be taken around the child’s birth. |
| Parental Leave | 4 months/parent | 2 months subsidized by OAED. Available until child turns 8. |
Non-compliance risks penalties like fines and legal action. For example, late payments incur daily interest, while deliberate misclassification of workers may lead to criminal charges. Employers must submit monthly contributions by the 15th of the following month via e-EFKA’s platform, with records retained for five years. Specific sectors, such as maritime and construction, face additional requirements, including higher occupational accident insurance. For sector-specific insights, ICLG’s Greece labor law overview offers sector-based nuances.
Modernizing family leave: New provisions
Law 5089/2024 extends parental rights to same-sex couples, aligning Greek labor laws with modern norms while gaps persist. Key updates include:
- Equal parental leave access for same-sex couples, mirroring heterosexual partners’ rights.
- Dismissal protections for same-sex parents (18 months post-birth/adoption).
- Recognition of foreign same-sex marriages and adoptions.
Male same-sex couples face surrogacy restrictions, and non-biological parents lack automatic legal recognition. These disparities may prompt legal challenges, particularly under EU non-discrimination directives. Employers must stay updated to ensure compliance and avoid litigation. Learn more in Greece vs. USA Labour Laws.
Managing Termination and Post-Employment HR Compliance in Greece
The New Probationary Period Rules
Greece’s Law 5053/2023 permits probationary periods of up to six months for indefinite-term contracts. Terminations during this phase require no notice or severance, but must avoid discrimination or retaliation. This reform aligns with EU Directive 2019/1152, balancing employer flexibility with employee protections. Employers must notify terminations via ERGANI II within four business days to avoid legal risks. Probation is optional, but performance assessments dictate whether the original hire date governs benefits like seniority-based pay increases.
Termination After the Probationary Period
Post-probation, severance scales with tenure: 2 gross salaries for 1–4 years, up to 12 for 16+ years. Notice periods range from one to four months based on service length. Employers must:
- Confirm legal grounds: Prohibited reasons like discrimination or union-related dismissals are invalid. Courts may award punitive damages for retaliatory firings.
- Issue written notice: Termination letters must outline reasons, dates, and payout calculations. For example, an employee with 5 years’ service requires three months’ notice unless waived by payment in lieu.
- Pay severance: Amounts are based on gross salaries, plus accrued wages and vacation pay. A worker with 7 years’ tenure receives 4 gross salaries as compensation.
- Comply with ERGANI II: Timely digital reporting prevents reclassification as unfair dismissal. ERGANI II also tracks compliance with Greece’s digital labor framework.
Post-Employment Restrictive Covenants
Greek courts assess non-compete clauses using Civil Code Articles 178, 179, and 281. A 2025 Supreme Court ruling mandates 40–50% of prior salary as compensation for enforceability. Valid clauses must:
- Protect specific interests: Trade secrets, client lists, or proprietary knowledge—not broad market competition. For example, a clause preventing a sales executive from poaching clients for 12 months.
- Define scope: Duration (1–2 years) and geography must align with the employee’s role. A clause restricting a logistics manager from working in Thessaloniki for two years may hold.
- Include compensation: Explicit terms (e.g., lump-sum payments or staggered installments) are mandatory. Employers often include these in offer letters.
- Specify prohibited actions: Vague language fails; precise restrictions (e.g., “developing competing products using proprietary algorithms”) ensure enforceability.
Confidentiality clauses remain enforceable without compensation. For compliance guidance, refer to Global HR Compliance in Greece or ICLG’s Greece-specific guidelines.
Ensuring A Fair Workplace: Anti-Discrimination And Employee Representation
Upholding Anti-Discrimination Laws
Under Greek law, discrimination in employment is strictly prohibited, aligning with EU directives. The 2005 Law 3304 outlines protections based on:
- Race or ethnic origin
- Religious or other beliefs
- Disability
- Age
- Sexual orientation
- Gender
Employers must prevent workplace harassment, including sexual harassment, through clear policies and reporting mechanisms. Law 4808/2021 and Presidential Decree 80/2022 mandate zero tolerance for such behavior. Notably, harassment complaints in Greece surged from 151 in 2022 to 3,018 in 2024, underscoring the urgency of compliance. Employers must designate contact persons, ensure confidential investigations, and prohibit retaliation.
Employee Representation And Trade Unions
Greek trade unions, such as GSEE (private sector) and ADEDY (public sector), play a pivotal role in negotiating Collective Labor Agreements (CLAs). These agreements often set minimum wages and working conditions exceeding statutory requirements. Despite their influence, unionization rates have declined, with only 15% of private-sector workers represented. Historical state funding, via wage deductions, has shaped their structure but left them vulnerable to economic shifts like the 2012 reforms that halved union contributions. Political affiliations further define union dynamics, with factional divisions often mirroring party lines.
Staying Compliant In A Changing Landscape
Compliance challenges include navigating rapid reforms like Law 5053/2023, which legalizes precarious “zero-hour” contracts, and digitization demands like the Digital Work Card. Proactive measures, such as regular compliance audits, help avoid costly penalties. Small businesses or foreign firms entering the Greek market may benefit from partnering with local HR experts to navigate complex regulations and focus on growth.
Navigating Greece’s evolving labor landscape demands vigilance. With reforms like Law 5053/2023, the Digital Work Card, and updated leave policies, compliance is both a legal imperative and strategic advantage. Proactive measures, such as regular regulatory audits and local expertise, ensure businesses—especially small enterprises—mitigate risks and thrive in this dynamic environment.
Frequently Asked Questions (FAQ)
What are the employment laws in Greece?
Greece’s employment laws emphasize transparency, work-life balance, and employee protections. Key regulations include mandatory written contracts under Law 5053/2023, which requires detailed terms like salary, working hours, and leave policies. The standard workweek is 40 hours (5 days), with options for a six-day week (48 hours) in specific sectors, requiring 40% overtime pay for the sixth day. Overtime limits, paid annual leave (20–25 days/year), and parental leave reforms under Law 5089/2024 for same-sex couples are also critical. Compliance with digital work cards and collective labor agreements (CLAs) ensures adherence to evolving legal standards.
Does HR deal with compliance?
Yes, HR plays a crucial role in ensuring compliance with Greek labor laws. This includes managing written contracts, tracking working hours via the digital work card system, and adhering to regulations on leave policies, anti-discrimination, and termination procedures. HR must also register employees with e-EFKA for social security contributions and navigate collective agreements. Failure to comply may result in penalties, making HR’s role in audits and training vital for mitigating risks.
What is Law 89 in Greece?
Law 89/1973, not covered in our primary data, historically governed Greek labor relations, focusing on collective bargaining and union rights. However, recent reforms like Law 5053/2023 (addressing zero-hour contracts) and Law 5089/2024 (expanding parental leave for same-sex couples) now take precedence. For HR compliance, prioritize these updated regulations over older statutes.
What is a major issue in Greece?
A major HR-related challenge in Greece is adapting to rapid legislative changes, such as Law 5053/2023’s digital work card and six-day workweek provisions. Economic pressures, including low average wages and high overtime rates (20.9% of workers exceeding 45 weekly hours), also pose challenges. Additionally, balancing flexibility for employers with employee protections remains contentious, particularly regarding zero-hour contracts and overtime regulations.
How is work culture in Greece?
Greek work culture values personal relationships and hierarchical structures, with a focus on long-term employment stability. While traditional practices persist, recent reforms like flexible workweek options and digital timekeeping aim to modernize practices. Work-life balance is increasingly prioritized, with strict limits on unpaid work and mandatory leave. However, debates around extended hours (e.g., 13-hour workdays) highlight ongoing tensions between economic demands and employee welfare.
What does 5 fingers mean in Greece?
This gesture, unrelated to HR compliance, is a cultural symbol in Greece, often used to ward off the “evil eye.” For HR professionals, cultural awareness is key, but this specific gesture falls outside the scope of labor laws and workplace regulations discussed in this guide.
What are the 4 C’s of compliance?
While the “4 C’s” (often Compliance, Control, Culture, and Consequences) aren’t explicitly mentioned in Greek labor law, HR compliance here revolves around: Clarity in contracts (per Law 5053/2023), Consistency in applying CLAs, Control via digital tools like ERGANII, and Consequences for non-compliance (e.g., fines). These principles ensure alignment with legal standards and operational integrity.
Who is responsible for HR compliance?
Employers bear primary responsibility for HR compliance in Greece, though HR departments or external consultants often manage implementation. Key duties include maintaining proper documentation, adhering to termination protocols, and ensuring social security contributions (via e-EFKA). Employers must also register terminations in ERGANII and respect anti-discrimination laws, with penalties for non-compliance.
What are the three most important HR laws?
Three pivotal laws shape Greek HR compliance: 1. Law 5053/2023: Regulates zero-hour contracts, mandates written terms, and introduces the six-day workweek option. 2. Law 5089/2024: Extends parental leave rights to same-sex couples, aligning labor policies with EU anti-discrimination standards. 3. Digital Work Card Mandate (Law 4808/2021): Requires real-time digital timekeeping via ERGANII, enhancing transparency and reducing undeclared work. These laws reflect Greece’s efforts to balance flexibility with worker protections in a dynamic economy.





