Greece Restores Collective Labor Agreements

Greece is entering a new era of labor relations following the historic restoration of Collective Labor Agreements (CLAs), as agreed by the government, employers, and trade unions. This landmark Social Agreement, concluded after seven months of tripartite consultations from May to November 2025, abolishes the restrictions imposed during the austerity period and strengthens collective bargaining across the country.

Under this new framework, CLAs are no longer seen as a mere bureaucratic formality but as a central tool to ensure fair wages, secure working conditions, and predictable employment terms. Individual employment contracts may only improve upon the terms set by a CLA, serving as a protective safety net for workers.

The agreement covers workers in sectors or professions represented by the signatory organizations and can now extend beyond union membership to all employees in a given field, promoting stability and healthy competition between businesses. Previously, a CLA needed to cover at least 50% of employees in a sector to be extended; the new framework lowers this threshold to 40%, with an additional mechanism allowing immediate extension when national social partners co-sign.

Other significant changes include streamlining employer and union registries for CLA purposes, ensuring full protection for employees after a CLA expires, and accelerating dispute resolution processes through a new pre-review committee at the Greek mediation body (OMED), eliminating a second arbitration stage while preserving judicial appeal rights.

The overarching goal of the Social Agreement is to increase the number of CLAs, extend their coverage to more workers, and resolve collective disputes more efficiently. By providing legal certainty, stability, and clear rules, the agreement aims to create a modern, fair, and balanced labor market that benefits both employees and businesses, while fostering social dialogue and trust in Greece’s employment framework.