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Notice periods in Greece
Termination of employment in Greece
Post-termination restraints in Greece
Waivers in Greece
Transfer of undertakings in Greece
End of employment in Greece
At some point, every employment relationship comes to an end. In Greece, this process is shaped by a range of rules covering everything from notice periods and severance pay to redundancies and post-termination restraints. Employers need to follow specific procedures depending on how the contract ends — whether it’s through resignation, dismissal, or a collective redundancy.
In this section, we will walk you through the key considerations around ending employment in Greece, including statutory notice periods, termination procedures, restrictions after employment ends, and what happens when a business changes hands.
Notice periods in Greece
Both employers and employees in Greece must give adequate notice to the other party if they want to end their employment agreement. Notice periods are defined by labour law, though collective agreements and individual employment contracts may provide different provisions.
Notice periods in Greece for employers
The amount of notice an employer must give to an employee in Greece is dependent on their length of service. The statutory notice periods for employers are as follows:
- Up to 12 months of employment: No notice.
- 1–2 years of employment: One month.
- 2–5 years of employment: Two months.
- 5–10 years of employment: Three months.
- More than 10 years of employment: Four months.
Notice periods in Greece for employees
Employees in Greece are also expected to give notice to their employer if they wish to resign from their post. The specific notice required generally depends on the employee’s length of service and will be outlined in their employment contract or the relevant collective bargaining agreement.
Severance pay in Greece
Employees in Greece are generally entitled to severance pay if their contract is terminated without cause after one year of service. The amount they are entitled to depends on how long they have been employed. When an employee is terminated with the statutory notice, statutory severance pay is reduced by 50%.
Probationary periods in Greece
Until recently, the first 12 months of an indefinite contract in Greece were considered to be the probationary period. A recent change to the law means that probationary periods are now only permitted for a maximum of six months and require an agreement between the employer and the employee. Despite this, employers may still terminate an employee’s contract without notice or severance pay within the first 12 months.
Termination of employment in Greece
Like all countries, Greece has certain procedures in place for the termination of employees, which employers should be aware of. Read on to learn what you need to know to protect both your business and your employees.
Grounds for termination of employment in Greece
Employers do not technically need a specific reason for terminating an employee’s contract in Greece. However, if the employee takes them to court over the termination, they must be able to demonstrate that it was both reasonable and the last viable option. For a termination of employment in Greece to be considered valid, the employer must:- Provide the employee with adequate written notice.
- Pay the employee the relevant severance pay.
- Register the employee with the social security fund.
Dismissal for cause in Greece
While employers do not explicitly need a just cause for termination of employment in Greece, the employee is entitled to challenge the validity of the termination in court. If the employee is being dismissed due to misconduct or inadequate performance (i.e. termination for cause), it is a good idea to precede this with a written warning, which shows the court that termination was a last resort.Redundancies in Greece
Employees in Greece may be made redundant if their position is no longer required, for example due to financial difficulties, restructuring, or other organisational changes. However, the employer must be able to show that the employee’s position has actually been eliminated and that they have considered all possible alternatives before making the employee redundant (for example, offering the employee an alternative position).Collective dismissals in Greece
There are special provisions in place for collective dismissals in Greece. These apply above the following thresholds:- Six or more dismissals in one month for employers with 20–150 employees.
- Dismissing more than 5% of the workforce and more than 30 employees in one month for employers with over 150 employees.
Post-termination restraints in Greece
Post-termination restraints are restrictions that employers can impose on employees after the end of the employment relationship. They are sometimes referred to as restrictive covenants or post-termination restrictions. They are generally only permissible in Greece if they are both limited in scope and designed to protect the employer’s legitimate business interests.
Types of post-termination restraints in Greece
Here are the most common types of post-termination restrictions that employers may impose on employees in Greece:
- Non-compete agreements: These prohibit employees from working for or setting up a business that competes with their former employer, usually within a certain timeframe and within the same geographic area.
- Employee non-solicit agreements: These prevent employees from soliciting or ‘poaching’ staff members from their former employer for their own business or their new employer.
- Customer non-solicit agreements: Similarly, these prevent employees from soliciting customers from their former employer. They are usually applied to senior employees with significant contact with customers.
Limitations on post-termination restraints in Greece
There is no specific legal framework for non-compete or non-solicit agreements that apply beyond the end of the employment relationship in Greece. However, courts have found such clauses to be valid and enforceable if:
- The agreement is designed to protect a legitimate business interest.
- The scope of the restriction is reasonable in terms of geographical area, term, etc.
- The employee is compensated for the duration of the restriction period.
There are no specific guidelines for the amount of compensation that should be paid to the employee, but courts have determined that the pay must be ‘reasonable’ in relation to the restrictions imposed. This is judged on a case-by-case basis, but in practice, compensation tends to be between 50 and 100% of the employee’s former salary.
Waivers in Greece
In some circumstances, an employer in Greece may conclude a separation agreement with an employee. This is an agreement in which the employee waives certain rights and claims against the company. Asking an employee to sign a waiver usually means paying them a larger severance amount than what is required by law. Termination agreements are most commonly used in the case of redundancies or the termination of senior executives.
Transfer of undertakings in Greece
A transfer of undertakings is when one business is wholly or partially acquired by another business entity. In this situation, employees of the transferred business unit have certain rights under EU and Greek law. Read on to find out what employers need to know about transfers of undertakings in Greece.
Employee rights after a transfer of undertakings in Greece
When a transfer of undertakings applies in Greece, employees’ rights and obligations are automatically transferred to the new employer. The new employer cannot dismiss these transferred employees or change their working conditions without a valid reason.
The transferer and the transferee must also inform and consult the employees or their representatives before the transfer takes place. This includes notifying employees of the transfer and its implications for employees. In some cases, employees of SMEs have the right to submit an offer for the business or the shares that are being transferred. However, the employer is not obliged to accept this offer.
Following a transfer of undertakings in Greece, the new employer should continue to observe the existing terms of employment provided by individual employment contracts and any collective bargaining agreements and/or arbitration decisions that apply.
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