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Hiring in Greece

Background checks in Greece

Hire employees in Greece

Language requirements in Greece

Corporate presence requirements and payroll setup in Greece

Easily hire employees in Greece with our EoR solution

Employer of record in Greece

Hiring in Greece usually means setting up a local business entity, which can be both expensive and time-consuming. It’s also almost certainly not worth the hassle if you only want to engage a handful of workers.

Alternatively, you could take on those workers as independent contractors instead of employees — but that’s not a risk-free solution either. Misclassifying employees as contractors — even accidentally — could land your company in serious legal trouble, as well as harming your reputation. There is an alternative: hire workers through an employer of record (EoR) instead.

What is an employer of record (EoR)?

An employer of record (EoR) is an organisation that engages workers on behalf of other organisations. Legally speaking, they are the workers’ official employer. However, the end client retains full responsibility for their day-to-day work. EoRs also handle various HR processes, including payroll, benefits administration, onboarding, and more.

Working with an employer of record in Greece

When you work with an employer of record in Greece, they’ll act as your employees’ legal employer. That means they will handle things like payroll, taxes, social security, and compliance with local labour laws, allowing you to compliantly engage employees without setting up a legal entity. This makes working with an employer of record in Greece a smart choice for businesses that want to quickly and easily enter the Greek labour market without the hassle or commitment of setting up a new branch or business.

Hiring in Greece with or without an EoR

Whether or not you use an employer of record in Greece, you’ll need a clear understanding of the labour laws, tax regulations, and work customs that apply there to ensure you give your Greek team the experience they deserve. In this section, we will cover everything from pre-employment background checks to language requirements to the process of setting up payroll in Greece, giving you everything you need to make your Greek expansion a success.

Hiring in Greece

Employers intending to hire in Greece should first understand the various nuances that shape the Greek labour market, including legislation, the role of works councils and trade unions, and the mandatory contributions employers must make on their employees’ wages. Read on to find out what you need to know as an employer hiring in Greece.

Labour laws in Greece

Companies hiring in Greece need to be aware of various labour laws, which govern aspects of employment including minimum wage, working hours, collective bargaining, and dispute resolution. The main sources of employment law in Greece are:

The Greek Constitution.
The Greek Civil Code.
Laws, legislative decrees, presidential decrees and ministerial decisions.
Case law.

Employment contracts in Greece

Employment contracts in Greece do not legally have to be in writing — verbal contracts are acceptable and legally binding. However, it’s best practice for employers hiring in Greece to provide written contracts for their employees to avoid confusion and potential disputes. Part-time and temporary employment agreements, on the other hand, must always be provided in writing.

Taxes and social security contributions in Greece

Employers in Greece are responsible for deducting both taxes and social security contributions from their employees’ earnings. Income tax in Greece is paid on a progressive scale with rates from 9% to 44%. Both employers and employees are also required to contribute to the country’s social security system. The contribution rates are:

21.79% of gross salary for employers.
13.37% of gross salary for employees.

Works councils in Greece

Employers hiring in Greece are not required to set up works councils. However, employees may choose to set up a works council if a business has 20 or more employees and no active trade union, or 50 or more employees if there is a trade union. Employers consult with works councils on matters impacting employees, including working conditions, health and safety, and restructuring.

Background checks in Greece

Employers in Greece can conduct certain background checks during the hiring process to verify information gathered during the recruitment process and confirm suitability for a role. However, these checks are subject to certain limitations under the GDPR and Greece’s data protection laws — read on for what you need to know as an employer.

Required background checks in Greece

Employers in Greece are responsible for checking that the people they employ have the right to work in the country. This involves verifying identity documents and confirming that non-EU/EEA nationals have a valid work permit or visa. Criminal records checks may also be required for some roles, such as those that involve working with children or other vulnerable populations.

Other permissible background checks in Greece

Here are some of the other types of background checks that employers might perform on potential employees in Greece:

Employment history checks: Employers can verify a candidate’s previous employment, including job titles, durations, and reasons for leaving. They typically do this by contacting former employers.
Credit history checks: These checks are relevant for positions involving financial responsibilities. They assess a candidate’s financial reliability and are more common in the banking and finance sectors.
Education history checks: This type of background check involves confirming academic qualifications and degrees. This is generally done by contacting the employee’s former educational institutions.
Social media checks: Employers in Greece can choose to review a candidate’s social media accounts to get an idea of their professional conduct. However, they should only check public-facing profiles and take care to avoid infringing employee privacy rights.
Reference checks: Contacting professional references can provide insights into a candidate’s work ethic and suitability for the role. Employers must ensure that such checks are conducted with the candidate’s consent and in compliance with data protection laws.
Driving record checks: For positions that involve operating vehicles, employers may choose to verify the candidate’s driving history. This should be done in accordance with legal requirements and with the candidate’s consent.

Limitations on background checks in Greece

When conducting background checks in Greece, employers must ensure that they comply with the requirements of the General Data Protection Regulation (GDPR) as well as local data protection regulations. Getting the candidate’s consent and informing them about the nature and purpose of any background checks is also crucial.

Employers are also prohibited from collecting or processing certain personal information as part of a background check in Greece unless explicitly required by law. This includes information related to the candidate’s political opinions, religious beliefs, sexual orientation, or other sensitive personal data.

Hire employees in Greece

Employers planning to hire in Greece should have an understanding of the various engagement models available, which include direct employment, engaging independent contractors, and using temporary agency workers. Each approach has its own pros and cons, as well as distinct legal and administrative implications — read on for what you need to know.

Main hiring options in Greece

Here are the main options available if you want to engage a worker in Greece:

Employee: Employees in Greece are engaged under formal employment contracts and enjoy certain rights and protections under Greek labour laws. Employees can be engaged on an indefinite, fixed-term, part-time, or full-time basis. To work as an employee in Greece, a non-EU citizen will need a residence permit for employment purposes from the Greek authorities, while employers need to obtain a work permit from the Ministry of Labour and Social Affairs.
Independent contractor: Independent contractors in Greece are self-employed individuals who operate under business-to-business arrangements. They are responsible for their own tax filings and social security contributions and are not covered by standard employment protections. While this model offers significant flexibility to both employers and workers, misclassifying employees as independent contractors can lead to legal and financial penalties.
Agency worker: Temporary agency workers in Greece are employed by staffing agencies and assigned to client companies for specific projects or timeframes. The agency manages payroll and compliance, while the client oversees daily tasks. This option is suitable for short-term needs or project-based work. Temporary agency workers in Greece have the right to equal treatment with directly engaged employees performing the same or similar work.

The importance of accurate worker classification in Greece

Misclassifying employees as independent contractors is a serious issue in Greece, which can result in fines, back payments of taxes and social security contributions, and potential legal consequences. Authorities assess the nature of the working relationship based on factors such as:

Control: The degree of supervision over the worker’s tasks and schedule.
Integration: Whether the worker performs core business functions.
Economic dependence: If the worker relies primarily on one client for income.

Language requirements in Greece

The official language of Greece is Greek, which is spoken by approximately 99% of the population. Minority languages include Albanian, Turkish, Russian, Romani, Aromanian, Bulgarian, and Macedonian. These languages are primarily spoken within specific communities and regions.

Language requirements for employment contracts in Greece

While Greek is the official language of Greece, there is no legal requirement for employment contracts to be drafted in Greek. If an employee is proficient in another language, the contract can be written in that language. However, it is advisable to provide a Greek version to ensure clarity and legal enforceability, especially in the case of disputes.

Language requirements for visas and work permits in Greece

Applicants for Greek work visas and permits are generally not required to demonstrate proficiency in Greek. However, certain positions may necessitate knowledge of Greek or English, depending on the nature of the role and the requirements of the employer.

English language in Greece

English is widely spoken in Greece, particularly in urban areas and the tourism sector. According to the EF English Proficiency Index, Greece ranks 8th globally and 7th in Europe, indicating a very high proficiency level.

Corporate presence requirements and payroll setup in Greece

Foreign employers wanting to set up payroll in Greece must first register a local business entity. They are also subject to certain legal, tax, and administrative obligations. Read on to find out how to hire and pay employees in Greece.

Steps to set up payroll in Greece

Here are the steps that must be followed to set up payroll in Greece:

Register a local business entity: The first step for foreign companies wanting to set up payroll in Greece is to register a local business entity such as a limited liability company (EPE) or a foreign branch or subsidiary.
Obtain an employer tax number (AFM): Employers must register with the local tax office (Eforia) to receive an employer tax number (AFM), which is necessary for tax reporting and compliance.
Register with social security authorities: They must also enrol with the Unified Social Security Fund (e-EFKA) to obtain an employer social security ID. This will be required for processing payroll and contributing to employee benefits.
Report new hires: Greek employers must submit hiring declarations via the Ergani Information System, an official platform provided by the Greek Ministry of Labour before employees commence work.
Implement a payroll system: Next, choose a payroll system that can accurately calculate gross pay, personal income tax, employee and employer social security contributions, and mandatory bonuses (13th and 14th-month salaries).
Withhold and remit taxes and contributions: Employers in Greece are required to deduct and remit personal income tax and social security contributions to the appropriate authorities by the specified deadlines.
Fulfill statutory reporting obligations: Employers must also file monthly payroll reports and tax declarations through the relevant government portals to maintain compliance.

Do you need a local bank account to run payroll in Greece?

Yes, employers in Greece must have a local bank account to issue payments to local authorities. Companies can open a bank account using their tax ID number (AFM).

Using an EoR as an alternative to setting up payroll in Greece

Companies that want to avoid the hassle and expense of setting up payroll in Greece should consider partnering with an employer of record (EoR) instead. These companies act as the legal employer for businesses engaging Greek workers, handling things like employment contracts, payroll processing, tax filings, and local labour law compliance on their behalf. This arrangement allows you to hire employees in Greece without the complexities of setting up a local entity, ensuring compliance and operational efficiency.

Easily hire employees in Greece with our EoR solution

Hiring employees in Greece usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC.

Through our EoR solution, you can confidently hire employees in Greece, without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.

Our EoR solution

Compliantly hire workers anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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