Anew labor law in Greece is ushering in sweeping changes aimed at simplifying employment procedures, enhancing workers’ rights, and reducing bureaucracy. The Greek Ministry of Labor has clarified the key provisions through a set of 16 questions and answers, addressing public concerns and outlining how the reforms will function in practice.
Key Objectives of the New Law
According to the Ministry, the legislation was shaped through input from both workers and businesses. It is designed to:
- Streamline hiring processes and reduce paperwork.
- Strengthen labor inspections to ensure compliance with employment law.
- Introduce measures that support employees’ work-life balance.
- Offer greater flexibility to both employers and employees.
No Abolition of the 8-Hour Workday
Despite widespread discussion, the standard 8-hour workday remains in place. However, the law now allows, under specific conditions, for employees to work up to 13 hours per day for a single employer—provided they consent and all legal requirements are met, including rest periods and overtime pay.
Previously, only those employed by multiple employers could work up to 13 hours in total. Now, a single-employer arrangement is also permitted, with a 40% pay increase for overtime. For instance, someone earning €8 per hour could make €119 for a 13-hour day with one employer, compared to €104 split between two.
The law emphasizes that overtime work requires the employee’s agreement and must be properly recorded. If not declared, employers face a 120% wage surcharge for the additional hours.
Enhanced Flexibility for Workers
The legislation introduces a variety of worker-friendly reforms:
- Flexible Leave Use: Employees can now divide their annual leave into multiple periods throughout the year, instead of taking it all at once.
- 4-Day Workweek Option: Employees can agree with their employer to work four 10-hour days instead of five 8-hour days, not just for six months (as previously allowed), but year-round.
- Parental Support: More women will now qualify for maternity benefits, including those who have worked for multiple employers or contributed to different social insurance funds. Additionally, maternity leave benefits are now extended to foster mothers.
- Tax-Free Parental Leave Allowance: This benefit is now protected from taxation, seizure, or transfer.
- Health and Safety Measures: Larger construction projects must now have a dedicated health and safety coordinator.
- First Aid Training: Employees will receive training in basic emergency procedures such as CPR and the Heimlich maneuver.
- Digital Safeguards: The new rules prohibit salary reductions following the introduction of the Digital Work/Labor Card system, which tracks working hours.
Support for Employers
The law also provides several advantages for businesses:
- Faster Hiring: Temporary workers can be hired for up to two days using a fast-track process.
- Less Red Tape: Multiple employment forms are being eliminated, as the same data is now captured in the national employment platform, ERGANI II.
- Cost Reductions: Employers will benefit from exemptions on extra insurance charges related to overtime, night shifts, and holiday work.
- New Digital Tools: A dedicated application, similar to myErgani, will assist employers with compliance and data management.
- Unified Policies: Company obligations related to workplace harassment and violence have been streamlined under a single framework.
Protections Around Dismissals
Contrary to speculation, the law does not permit dismissals via text message (SMS), nor does it change existing rules on termination. Employers must still follow standard legal procedures when ending employment.
Overtime and Part-Time Work
Employees under part-time or rotational work arrangements are now allowed to perform paid overtime if they choose to do so. For example, a restaurant worker on a three-day schedule can legally add extra hours with a 40% wage bonus.
Impact on Pensions and Social Insurance
The legislation also ensures that income earned by working pensioners will not trigger increased solidarity contributions. Importantly, recent data indicates that reducing insurance surcharges has not weakened the social security system. On the contrary, reported overtime and night work surged, leading to a 48% increase in social fund revenues and a 62% rise in overtime pay.
Collective vs. Individual Rights
While the new law focuses on individual employment contracts, it does not hinder collective bargaining. In fact, recent months have seen a rise in collective labor agreements across various sectors, offering even more favorable terms than those guaranteed under the new law.
Source: tovima.com
