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Labour & Employmentin 42 jurisdictions worldwideContributing editors: Matthew Howse, Walter Ahrens,François Vergne and Mark Zelek
Published by Getting the Deal Through
in association with:
Afridi & AngellAndreas Neocleous & Co LLC
Basham, Ringe y Correa SC Biedecki Biedecki & Partners
Blesi & PapaBloomfield Advocates & Solicitors
BLS Rechtsanwälte Boller Langhammer Schubert KGCastegnaro – member of Ius Laboris
CederquistCentral Law – Medina, Rosenthal & Asociados
Central Law – Molina & AsociadosCentral Law – Quirós Abogados
Díaz Durán & Asociados – Central LawDittmar & Indrenius
DMK Lawyers – Central LawF Castelo Branco & Associados
Greenberg Traurig LLPHeenan Blaikie LLP
Hoet Peláez Castillo & Duque Holding Redlich
Hutabarat Halim & RekanIason Skouzos & Partners
KK LegalKochhar & Company
Lee, Tsai & Partners Attorneys-at-LawMachado Associados Advogados e Consultores
Morgan, Lewis & Bockius LLPNorrbom Vinding
Philippi, Yrarrázaval, Pulido & Brunner LtdaPosse Herrera Ruiz
Rusconi, Medina & Asociados – Central LawSagardoy Abogados – member of Ius Laboris
TMI AssociatesToffoletto De Luca Tamajo e Soci – member of Ius Laboris
TSMP Law CorporationTuca Zbârcea & Asociatii
Contents
www.gettingthedealthrough.com
®
Labour & Employment 2013Contributing editors Matthew Howse, Walter Ahrens,François Vergne and Mark ZelekMorgan, Lewis & Bockius LLP
Business development managers Alan LeeGeorge IngledewDan White
Marketing managers Rachel Nurse Zosia DemkowiczMarketing assistants Megan FriedmanCady AtkinsonRobin Synnot Joe RushAdministrative assistants Parween BainsSophie Hickey
Subscriptions manager Rachel Nurse [email protected]
Head of editorial production Adam MyersProduction coordinator Lydia Gerges
Senior production editor Jonathan CowieProduction editor Jo Morley
Chief subeditor Jonathan AllenSenior subeditor Caroline Rawson
Editor-in-chief Callum CampbellPublisher Richard Davey
Labour & Employment 2013 Published by Law Business Research Ltd 87 Lancaster Road London, W11 1QQ, UK Tel: +44 20 7908 1188 Fax: +44 20 7229 6910© Law Business Research Ltd 2013No photocopying: copyright licences do not apply.First published 2007 Eighth edition 2013 ISSN 1744-0939
The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer–client relationship. The publishers and authors accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of April 2013, be advised that this is a developing area.
Printed and distributed by Encompass Print Solutions Tel: 0844 2480 112
LawBusinessResearch
Global Overview Mark Zelek Morgan, Lewis & Bockius LLP 3
Women in the Boardroom – Tackling Gender Imbalance Matthew Howse and Rachel Ashwood 5 Morgan, Lewis & Bockius LLP
Australia Charles Power and Michael Selinger Holding Redlich 8
Austria Thomas Boller and Martina Raczova BLS Rechtsanwälte Boller Langhammer Schubert KG 16
Brazil Fabio Medeiros Machado Associados Advogados e Consultores 23
Canada Douglas G Gilbert, Roy L Heenan and Rhonda R Shirreff Heenan Blaikie LLP 29
Chile Enrique Munita Philippi, Yrarrázaval, Pulido & Brunner Ltda 39
China Min Duan Morgan, Lewis & Bockius LLP 46
Colombia Carolina Camacho and Camilo Bernal Posse Herrera Ruiz 53
Costa Rica Alfonso Carro S Central Law – Quirós Abogados 59
Cyprus Nicholas Ktenas Andreas Neocleous & Co LLC 65
Denmark Morten Langer Norrbom Vinding 71
Dominican Republic Llilda Solano and Henry Pastrano DMK Lawyers – Central Law 78
El Salvador Piero Antonio Rusconi Gutierrez and Erwin Alexander Haas 84 Rusconi, Medina & Asociados – Central Law
Finland Seppo Havia and Jessica Brander Dittmar & Indrenius 88
France François Vergne and Antoine Jouhet Morgan, Lewis & Bockius LLP 96
Germany Walter Ahrens Morgan, Lewis & Bockius LLP 103
Greece Theodoros Skouzos Iason Skouzos & Partners 112
Guatemala Juan Pablo Carrasco de Groote Díaz Durán & Asociados – Central Law 122
Honduras Ricardo Padilla and Marcela Aguilar Central Law – Medina, Rosenthal & Asociados 127
Hungary Gyula Korösy and Zoltán Kató KK Legal 132
India Manishi Pathak Kochhar & Company 140
Indonesia Pheo M Hutabarat and Asido M Panjaitan see www.gettingthedealthrough.com Hutabarat Halim & Rekan
Italy Valeria Morosini Toffoletto De Luca Tamajo e Soci – member of Ius Laboris 146
Japan Motoi Fujii and Rie Taiko TMI Associates 153
Kazakhstan Vladimir Shuster, Klara Nurgaziyeva and Askar Baigazin Morgan, Lewis & Bockius LLP 164
Luxembourg Guy Castegnaro Castegnaro – member of Ius Laboris 170
Mexico Jorge de Presno Arizpe and Alvaro González-Schiaffino Basham, Ringe y Correa SC 179
Netherlands TMJ (Dorothé) Smits Greenberg Traurig LLP 185
Nicaragua Betsy Aleska Baltodano Sánchez Central Law – Molina & Asociados 192
Nigeria Adekunle Obebe and Dayo Adu Bloomfield Advocates & Solicitors 198
Poland Katarzyna Zwierz-Wilkocka and Radosław Biedecki Biedecki Biedecki & Partners 203
Portugal Alexandra Almeida Mota F Castelo Branco & Associados 210
Romania Serban Pâslaru Tuca Zbârcea & Asociatii 216
Russia Bela Yu Pelman, Vasilisa Strizh and Brian L Zimbler Morgan, Lewis & Bockius LLP 222
Singapore Ian Lim, Freddie Lim and Samantha Lee TSMP Law Corporation 229
Spain Iñigo Sagardoy and Carlota Riquelme Sagardoy Abogados – member of Ius Laboris 237
Sweden Robert Stromberg and Jonas Lindskog Cederquist 243
Switzerland Roberta Papa and Thomas Pietruszak Blesi & Papa 250
Taiwan Chung-Teh Lee Lee, Tsai & Partners Attorneys-at-Law 257
United Arab Emirates Charles Laubach and Amun Bashir Afridi & Angell 266
United Kingdom Matthew Howse and Sarah Ash Morgan, Lewis & Bockius LLP 273
United States David A McManus and Michelle S Silverman Morgan, Lewis & Bockius LLP 280
Venezuela Fernando Peláez-Pier and John D Tucker Hoet Peláez Castillo & Duque 289
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112 Getting the Deal Through – Labour & Employment 2013
GreeceTheodoros Skouzos
Iason Skouzos & Partners
Legislation and agencies
1 What are the main statutes and regulations relating to employment?
Articles 648 to 680 of the Greek Civil Code on ‘contract of employ-ment’ are the basic provisions that govern the employment relation-ship between employers and employees. These articles define: • thenatureofanemploymentcontract;• theemployer’sandemployee’smainobligations;• thetimeofpaymentofsalaryandtheconsequencesofdelay;• theconsequencesofanemployee’ssickness;• healthandsafetyatwork;• collectiveemploymentagreements;• thedeemedrenewalofanemploymentterm;• annualleave;and• terminationforaseriousreason.
2 Is there any law prohibiting discrimination or harassment in
employment? If so, what categories are regulated under the law?
Greece has adopted Directives 43/2000/EC and 78/2000/EC, which governthegeneralframeworkofequaltreatmentinemployment.The relevant national laws are:• LawNo.3304/2005fortheapplicationoftheprincipleofequaltreatmentregardlessofnational,racial,religiousorotherorien-tationorbeliefs,invalidity,ageorsexualorientation;and
• LawsNo.3769/2009and3896/2010for theequal treatmentbetween men and women in employment.
According to the above legislation, all direct or indirect discrimina-tionorharassmentthatleadstotheabuseofapersonareillegal.
3 What are the primary government agencies or other entities
responsible for the enforcement of employment statutes and
regulations?
TheMinistryofLabourandSocialSecurity isauthorised tocon-troltheenforcementofemploymentstatutesandregulationsaswellas to provide necessary information to employees. This objective is realisedthroughthecreationofspecialauthoritiesresponsibleforspecificissues.TheGeneralDirectorateofConditionsandHygieneatWork, theDepartmentofLabourConditions, theDepartmentof Management Information, Training and Monitoring Policy WorkingforSafetyandHealth,theCentreofHygieneandSecurityat Work, the Labour Inspection Authority (LIA) and the policeareauthorisedtocontrol theenforcementof thewhole legislativeframeworkconcerningemployment.TheroleoftheSocialSecurityFoundation (IKA) is also very important in relation to the socialsecurityandinsuranceobligationsofemployers.AccordingtoLawNo.3842/2010,taxauthoritieshavethecompetencyandtheobli-gationtoverifypendingsocialsecuritycontributionsandnotifytheIKAwhereanemployerhasnotfulfilledhisorherobligations.
Worker representation
4 Is there any legislation mandating or allowing the establishment of a
works council or workers’ committee in the workplace?
AccordingtoLawNo.1767/1988,theemployeesofanybusinessthatemploysmorethan50peoplehavetherighttobeelectedandestablishworkscouncilsfortheirrepresentationintheenterprise.Ifthereisnotradeunionorganisationwithinthebusiness,therelevantthreshold is 20 instead of 50 employees.Themembers ofworkscouncils enjoy the sameprotectionas theadministratorsof tradeunionorganisations.Employers,personsactingontheirbehalfandany third parties are prohibited from proceeding to actions or omis-sions with a view to impede the exercise of the employees’ rights describedaboveand,morespecifically:frominfluencingtheemploy-eesbyusingthreatsofdismissalorothermeanstoobstructtheexer-ciseofrightsprovidedbythisLaw;fromsupportingthecandidatureofemployeeswithfinancialorothermeans;andfrominterveningby any means in the exercise of the employees’ general assemblies.
Background information on applicants
5 Are there any restrictions or prohibitions against background checks
on applicants? Does it make a difference if an employer conducts its
own checks or hires a third party?
AccordingtotheDataProtectionLawandtheexplanatoryDirectiveNo.115/2001oftheDataProtectionAgency(DPA),collectingandprocessing personal data of candidates in order to hire them is only allowedforpurposesdirectlyconnectedtotheemployment,andtheemployermayonlyrefertodatathatisabsolutelynecessarytoassesswhether a candidate is suitable and skilled for the position. Theemployermust address the candidates themselves to collect theirpersonal data. Collecting candidates’ personal data from third par-ties is not prohibited, as long as it is necessary for the achievement of thegoal.Avitalprerequisiteisforthecandidatestobeinformedinadvancethatinformationfromthirdpartieswillbesought,andtheirexplicitconsentmusthavebeengiven.Anemployerthatintendstoseekinformationfromthirdpartieshasadutytoinformthecandi-dateofthepurposesofthecollectionandprocessingofthedata,thesourcesfromwhichinformationwillbesought,thetypeofinforma-tionandtheconsequencesofapossiblerefusalofconsent.Forsomeposts in particular (eg, for employeesmanagingmonetary issues,teachers),thecollectionandprocessingofdataregardingaperson’sprosecutionsandconvictionsiscompulsory.
6 Are there any restrictions or prohibitions against requiring a medical
examination as a condition of employment?
Personal data regarding the candidate’s health must be collecteddirectlyandonlyifitisabsolutelynecessaryforevaluatingwhetherthecandidateissuitableandskilledforaspecificpostoroccupation,
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presentorpotential(eg,physicalsforindividualsemployedinnurs-eries, restaurants or hotels, drivers, pilots, etc); in order for theemployer to perform his or her duty regarding the hygiene andsafetyoftheworkingplace;orforthefoundationoftheemployees’rightsandtheattributionoftherelativesocialbenefits.
7 Are there any restrictions or prohibitions against drug and alcohol
testing of applicants?
Thereisnospecificdirectiveorregulationregardingdrugoralcoholtesting.As a general rule, tests, analyses and relevant proceduresthat are related to past convictions, habits or even the mental health statusoftheindividualmaybeincludedinarecruitmentprocess.Becausesuchtestsconstituteadeepinvasionofthecandidate’sper-sonality and personal life, the general principle of proportionality dictatesthattheymayonlybeconductedinexceptionalcases,onlyif it isabsolutelynecessaryfortheachievementofaspecialcausedirectlyconnectedtothatparticularpostandonlywiththecandi-date’s written consent.
Hiring of employees
8 Are there any legal requirements to give preference in hiring to, or not
to discriminate against, particular people or groups of people?
ByvirtueofLawNo.2643/1998oncare for the employmentofpersons of special categories and other provisions:• GreekorforeigncompaniesorbusinessesthatoperateinGreeceand their affiliates, if they employ 50 or more persons, areobliged to hire persons of ‘protected categories’, as defined in theaboveLaw,upto8percentoftheirtotalworkforce;and
• certainpublicinstitutionsareobligedtoemploypersonsofthesamecategoriesupto10percent.
Enterprisesandinstitutionsthathavehadlossesinthelasttwofiscalyears are exempted from the above obligation. The above percent-ages are split among the following categories of protected persons, subjecttotheproportionsprovidedinarticle2ofthesameLaw:• parentsthathavemorethanthreechildren;• personswithaninvaliditystatusofover50percentandper-sonswithlimitedprofessionalcapacityduetoanychronicbod-ily,mental or psychiatric illness (personswith special needs),providedtheyareregisteredintheLabourForceEmploymentOrganisationregistersofdisabledunemployed;
• personswithchildren,siblingsorspouseswithadisabilityper-centage of over 67per cent due to severemental andbodilyillness,orwithatleasta50percentinvaliditypercentageduetointellectualdisabilityorautism;
• personswhoparticipatedintheNationalResistanceandtheirchildren;
• members of rebel groups that participated in the NationalResistanceandtheirchildren;
• survivingspousesorparentofpersonsthatdiedinthedictator-shipresistanceagainstthecolonel’sjunta;
• warvictimswithdisabilities;• personsincapacitatedbythehardshipsofmilitaryserviceiftheyserved,inanycapacity,intheJoinedArmedForcesorSecurityForces,andtheirchildren;
• civilianwarvictims,war-disabledpersonsandtheirchildren;• victimsofthepeaceperiodandtheirchildren;• spousesofpersonsthathavediedorhavebeenmissingsincethemilitarycoupandthemilitaryeventsinCyprusin1964,1967and1974.
9 Must there be a written employment contract? If yes, what essential
terms are required to be evidenced in writing?
No. As a rule, the agreement does not have to be in writing.Therefore, it is possible to be made explicitly or tacitly, orally or in writing. There are cases where the law provides for an employ-mentcontractinwriting,suchasanemploymentcontractwiththestateorapubliccorporation,apart-timeemploymentcontractoranemploymentcontractbyrotation(inturn).However,accordingtoPresidentialDecreeNo.156/1994,theemployerisobligedtonotifythe employee in writing, within two months of the commencement of the working relationship, of the essential terms of the employ-ment contract, which are the following:• theIDdataofthecontractingparties;• theplaceofwork;• thepositionoftheemployee,aswellastheobjectofhisorherwork;
• thedatefromwhichthecontractisinforceanditsduration;• thedurationoftheleaveofabsencewithbenefitstheemployeeisentitledto,aswellasthemannerandtimeofitsissuance;
• all thekindsofremunerationtheemployee isentitledto,andtheirfrequency;
• thedurationoftheregulardailyandweeklyemploymentoftheemployee;
• referencetothecollectiveregulationthatappliesanddefinestheminimumtermsofwageandemploymentoftheemployee;and
• thecompensationthatmaybeowedifthecontractisterminated,as well as the deadlines to be kept by both the employer and the employee,pursuanttothe legislationinforce intheeventtheemployment contract is terminated.
10 To what extent are fixed-term employment contracts permissible?
Theyareallowed.Thecourtsandsubsequentlythestatutesprotectthe employee from theabuseby the employerof themeaningof‘fixed-term’, that is, naming a contract as fixed-term when it is really an indefinite-termemployment contract. Specifically, according toPresidentialDecree81/2003,article5(asreplacedbyarticle41ofLaw3986/2011),ifthedurationofsuccessiveemploymentcontractsexceedsthreeyearsintotal,withoutbeingjustifiedbyspecificrea-sons or needs provided by law, it is deemed that those contracts cover constant and permanent needs of the enterprise and conse-quently are converted into employment contracts or relations ofindefiniteterm.If,inthedurationofthosethreeyears,thenumberofrenewalsofthesuccessivecontractsorlabourrelationsismorethanthree,withoutany legal justification, it isdeemedthat thosecontracts cover constant and permanent needs of the employer and consequentlyaredeemedbylawtobeemploymentcontractsorrela-tionsofindefiniteterm.Theonusofprovingtheoppositelieswiththeemployer.‘Successive’contractsorlabourrelationsarethefixed-termcontractsorlabourrelationsbetweenthesameemployerandthe same employee, with the same or resembling terms of employ-mentandanintervalofnomorethan45calendardays.
11 What is the maximum probationary period permitted by law?
Intheeventofaprobationaryemployment(ie,whentheemployerwishes to test the employee’s capacities before definitely hiring the employee), there is a contract of employment as of the date theemployeeundertookemployment.Thisprobationaryemploymentmay either be a definite-term employment contract, when it is agreed thatitshallbedejureterminatedaftertheprobationaryperiod,oranindefinite-termemploymentcontract,whichthereforeduringtheprobationaryperiodissubjecttotheterminationclause.Article74ofLawNo.3863/2010definesthat,intheeventofanindefinite-termemploymentcontract,theprobationaryperiodmaynotexceed12months,duringwhichtimethecontractmaybeterminatedwithout
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114 Getting the Deal Through – Labour & Employment 2013
duenoticeandwithoutanycompensationfordismissal,except ifotherwise agreed between the parties. The employee shall receive wagesduringtheprobationaryperiodaswell.
12 What are the primary factors that distinguish an independent
contractor from an employee?
Anemployeeissubjecttoa‘contractofdependentservices’,bywhichthe contracting parties agree to the provision of services in advance andasalary,regardlessofthewayitispaid,andtheemployeeissub-ject to legal and personal dependence on the employer. This depend-ence is expressed by the latter’s right to give the employee binding commands and directions regarding the manner, place and time of theexecutionofservices,andtomonitorandcontroltheemployeeto ascertain whether he or she complies with them. An independent contractorisundera‘contractfortheprovisionofliberalservices’,that is, heor sheprovideshisorher serviceswithoutbeing sub-jecttoanyone’scontrolandmonitoring,andwithoutbeingobligedto comply with commands and directions, especially regarding the manner and time of the provision of his or her services. These are the factualcircumstancesthatacourtwilllookatshouldadisputeariseregarding the classification of a contract. Employment contracts are often hidden under ‘liberal provision of services’ agreements.Employers are very keen to stretch this definition in order to employ aworkforcewithoutbeingsubjecttosocialsecuritycontributionsandwithouthavingtorespecttheregulationsrelatingtoovertime,annualleave,terminationnotice,compensation,etc.Anindepend-entcontractorhasdifferenttaxobligations,keepsaccountingbooksandisliableforhisorherownsocialsecuritycontributionswithouttheinvolvementorburdenofanemployer.
Foreign workers
13 Are there any numerical limitations on short-term visas? Are visas
available for employees transferring from one corporate entity in one
jurisdiction to a related entity in another jurisdiction?
Yes;accordingtoarticle14(4)ofLawNo.3386/2005ontheentry,residence and social integration of third-country nationals in theterritoryofGreece (theThird-countryNationalsLaw),numericallimitations apply according to relevant ministerial decisions that aretakeneveryyearandthatprescribethenumberofthird-countrynationals per region and per specialisation. Accordingtoarticle17(1)(a)oftheabove-mentionedLaw,resi-
dence permits are granted to higher managerial employees and exec-utiveemployeesofforeignbusinessentitiesthatoperateinGreecethroughasubsidiaryorabranch.According toarticle17(1)(b)of the sameLaw, residenceper-
mitsarealsograntedtothird-countrynationals-employeeswhoareemployedbyforeignbusinessentities(industrial,maritime,commer-cial)thatlegallyconductoperationsinGreece.Accordingtoarticle17(1)(e),foreignspecialisedscientificpersonnelmayalsobegrantedresidence permits with certain limitations.
14 Are spouses of authorised workers entitled to work?
CitizensofthirdcountriesthatresidelegallyinGreeceformorethantwoyears(inthiscasecalled‘sponsors’)mayrequestthattheirspouseandtheirunderagechildrenaregiven leavetoenterandreside inthecountryforreasonsoffamilyreunification.Whenthe‘sponsor’holds a residence permit for dependent employment or independent economic activity, the family members have, respectively, the right to dependentemploymentortoindependentfinancialactivity(article59oftheForeignNationalsLaw).
15 What are the rules for employing foreign workers and what are the
sanctions for employing a foreign worker that does not have a right to
work in the jurisdiction?
Subjecttothespecialprovisionsapplicabletothird-countrynation-alswhoarealreadylegallyresidentsinGreece(executiveemployees,familymembers,etc),asageneralrule,inordertoemployathird-countrynationalanemployermustofficially‘invite’himorher,fileanapplicationtothelocalauthorityandguaranteethepaymentofa sumequal to thebasic statutory remunerationofunspecialisedworkers. If, after the application is approved for the employment ofthethird-countrynationalbytheapplicant-employer,thethird-countrynationalisgrantedapermissionofentryfortheprovisionofdependentemployment;thisisusuallygrantedforoneyear,andalwaysforadefiniteterm.Theapplicantmustshowacontractofemploymentthatprovesthatheorsheshallreceiveremunerationequal to the above-mentioned statutoryminimum.The residencepermit is renewable. The sanctions for employers who employ a third-countrynationalwhoisnotequippedwiththenecessaryresi-dencepermit,oratleastproofthatallrelevantdocumentationhasbeen depositedwith an application at the relevant authority, areadministrativefinesofuptoe15,000,closureofthebusinessfrom1to24monthsandimprisonmentofthreemonthstofiveyears(arti-cle86ofLaw3386/2005).
16 Is a labour market test required as a precursor to a short or long-term
visa?
Thenumberofresidencepermitsfordependentemploymentissuedevery year is determined according to state reports that indicate the existing needs in the workforce and the job vacancies per region.
Terms of employment
17 Are there any restrictions or limitations on working hours and may an
employee opt out of such restrictions or limitations?
Thelegaldailyworkinghoursforemployees,thatis,thetimeworkplanasimposedbythelaw,iseighthoursforenterprisesemployingtheirpersonnelfivedaysperweek,andsixhoursand40minutesforbusinessesemployingtheirpersonnelsixdaysperweek.Ingen-eral, an agreement between the employer and the employee is pos-sibleregardingaworkingschedulewithfewerhoursthanthelimitimposedbythelaw,butwithoutprejudicetotheentitlementoftheemployeeforfullremuneration.LawNo.3385/2005(article2)providesthattheemployerand
theemployeemayarrangetheworkinghoursinadifferentmannerif this is dictated by the employer’s increased needs for a specific period,whichmaynotexceedfourmonthspercalendaryearintotal.Underthatlatterarrangement,twoextrahoursmaybeagreedperday,whichare‘credited’totheemployee,sothattheyaredeductedfromhisorherworkinghoursatalaterstage.Alternatively,insteadoflesshoursperdayduringanotherperiod,theemployeemaytakedays off. There are many other provisions regarding payment for nightshiftandSundaywork,aswellaspublicholidays,whichare,as a rule, of public order, and therefore anywaiveronbehalf ofemployeesfromtheirrelevantrightswouldbeheldinvalid.Law3846/2010provides thatduringanexistingemployment
contractorwhendrawingupanewcontract,theemployerandtheemployeemayagreebyawrittenindividualagreementeitherdaily,weekly, fortnightly or monthly employment, for a definite or indefi-nite period,whichwill be shorter than the full-time employment(part-time employment). If this agreement is not disclosed in thecompetentLabourInspectoratewithineightdaysofitssignature,itispresumedthattheemploymentagreementisofafull-timenature.
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18 What categories of workers are entitled to overtime pay and how is it
calculated?
In Greek law, two types of overtime work are recognised: overwork andovertime.LawNo.3385/2005 introducedthenewnotionof‘overwork’. This term was designed to loosen the traditionally strict statutory approach that everyhour above the eighth is overtime.Therefore, ‘small’ excesses of the eight-hour limit are now called‘overwork’.With regard towork hours, overwork and overtimehoursingeneral,therelativeprovisionsapplytoallsalariedpersons,regardless of whether they are employees or workers, except manag-ersordirectors(thatis,senioremployeesoftheenterprise–thesearethe persons who have administrative tasks and managerial responsi-bilities,andatthesametimetheirremunerationismuchhigherthantheircolleagues).By virtue of LawNo. 3385/2005 as completed by LawNo.
3863/2010,anemployeemaybeoccupiedforafurtherfivehoursperweekattheemployer’sdiscretion(overwork).Thoseoverworkhours(fromthe41sttothe45thhour)areremuneratedwiththereg-ularwageperhourincreasedby20percent.Employeesforwhomthesix-working-daysystemappliesmaybeoccupiedforeightmorehoursperweekattheemployer’sdiscretion(overworkfromthe41sttothe48thhour).Theemployeesinthiscasearealsoremuneratedwiththeregularwageperhourincreasedby20percent.Overtimework,thatis,workexceedingthemaximumlimitof
legal work of employees and providing services to employers beyond 45or48hoursperweek–inotherwords,exceedingtheoverworkhoursaswell–isallowedonlyforspecificactivitiesthatareconsid-eredtobeurgentandexceptionalorextraordinary.Theemploymentofmore than45or48hoursperweek respectively is consideredovertimeandtheemployeeispaidforthesehoursasfollows:fromoneto120hoursperyearthewageisincreasedby40percent;formorethan120hoursperyearthewageisincreasedby60percent.For the realisation of overtime the following are required:
a recordof awritten announcementby the employer to theLIAresponsible for the region and the keeping by the employer of a spe-cial overtime book.
Managers are exempted from the application of several provi-sionsoflabourlawandarenotprotectedbytherestrictionsofthelegalworkinghours(LawNo.2269/20);theymayworkovertimeoronSundaysandduringthenightwithoutcompensation(PresidentialDecreeNo.8of13April1932).Thereisnoconcreteformulathatdefinesamanagerordirectorand,incasesofdispute,thecourtswilllookintothespecificfactsoftheparticularcase.Ahighsalarywillnotperseguaranteethataworkershallbeconsideredamanager,becauseitmaywellbethathighremunerationisjustifiedbythespe-cial skills that a worker has. For all other workers, the conventional workscheduleofupto40hoursperweekisapplied.Specificallyinrelationtopublicservants,overtimeworkisnot
compensatedunlessitisnecessarytocoverseasonal,extraordinaryor urgent public needs.According to upcoming changes that arebeingintroducedasemergencymeasuresinresponsetotheGreekpublicdebtcrisisof2010,thetotalpayablemonthlyhoursofover-timeworkperemployeewasdiminishedfrom60to40hours(article6ofLawNo.3833/2010).
19 Is there any legislation establishing the right to annual vacation and
holidays?
TherighttoannualvacationandholidaysisgovernedbyLawNo.539/1945andarticles666and667oftheGreekCivilCode.BeforetheintroductionofLawNo.3144/2003,anemployeewasentitledtoholidayleaveafterbeingcontinuouslyemployedfor10months.Since thisLawcame into forceon8May2003, the employee isentitledtovacationleavewithoutthe10-monthrequirement.Thedays of leave to which he or she will be entitled still depend on the monthsheorshehasworkedatthesameemployer;thetablebelowapplies.Vacation ispaidwith thenormalagreed salary.Sundays,
publicholidaysandsickleavearenotincludedinvacationleave.If,forexample,anemployeetakesvacationleaveof10daysandthefifthdayisapublicholiday,heorshewillcomebacktoworkonthe11thday.Iftheemployerisabusinessthatrunsfivedaysperweek,the
following applies:
Months of employment
Days of vacation leave
Vacation pay (salary-based)
Vacation pay (per diem-based)
12 months 20 96% of salary 24 x per diem
Second year 21 1 salary 25 x per diem
Third year or more 22 1 salary 26 x per diem
Employeesthathavebeenworkingforaperiodof10yearsforthesameemployerorforaperiodof12yearsforanyemployerunderanyemploymentrelationshipareentitledto25daysofholidayleave.If theemployer isabusinessthatrunssixdaysperweek,the
following applies:
Months of employment
Days of vacation leave
Vacation pay (salary-based)
Vacation pay (per diem-based)
12 months 24 96% of salary 24 x per diem
Second year 25 1 salary 25 x per diem
Third year or more 26 1 salary 26 x per diem
Employeesthathavebeenworkingforaperiodof10yearsforthesameemployerorhavebeenworkingforaperiodof12yearsforanyemployerunderanyemploymentrelationshipareentitledto30days of holiday leave.
If an employee has worked for less than a year, he or she will be entitled to two days of leave for every working month. Vacation leavewithoutpaymayalsobeagreedbetweentheparties;itisnota right or an obligation of either party. It may be agreed that leave withoutpay isontopof thestatutoryholiday,etc,dependingonthe individual circumstances.Avacationbonus is alsoobligatorybystatute.Thisequals50percentofthemonthlysalaryor(iftheemployeeispaidperdiem)13timesperdiem.Under the current legislation, the employee does not have to
submitanapplication(writtenororal)inordertogethisorherlegalannualvacation.Theemployerisobligedtograntthelegalannualvacation to the employee before the termination of the year, even if theemployeedidnotaskforit,otherwisetheemployerissubjecttopenal sanctions.
20 Is there any legislation establishing the right to sick leave or sick pay?
According toarticle5(3)ofLawNo.2112/1920andarticle8ofRoyal Decree No. 16 of 18 July 1920, salaried employees maybeabsent fromtheirwork for temporaryperiodsdue to sicknesswithout theirabsencebeingconsideredasagroundforunilateraltermination of their employment relationship. The employer is obligedtoacceptthembackatwork.Byvirtueofarticle3ofLawNo.4558/1930,atemporarysicknessperiodisconsideredaperiodbetweenone,three,fourandsixmonthsdependingonthelengthoftheemploymentaccrued,whichwouldaccordinglybefour,fourto10,10to15andover15years.
In the event of sickness of salaried personnel, employees will not beingpaidduringthewholeperiodoftheirabsencebutasfollows:• if the salaried employee has completed a period of serviceexceeding10daysbutlessthanayear,heorshehastherighttoremunerationofa15-dayperiod(providedthesicknesshasadurationof15daysormore);and
• ifthesalariedemployeehascompletedayear’sservice,heorshehastherighttoamonth’sremuneration(providedtheillnesshasadurationofonemonthormore).
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Iftheabsenceislessthan15daysoramonthrespectively,thesala-riedemployeeshallberemuneratedfortheperiodoftimeofhisorher absence.Inanyevent,theemployerhasarighttodeductfromtheabove-
mentioned remunerationowed to the employee,due to sickness,theamountofmoneythelattermayhavereceivedfromtheSocialSecurityFundbyvirtueoftheLawregardingobligatoryinsurance.In order for the employee to have the right to a sickness benefit fromtheSocial Insurance Institute, theymusthavecompletedatleast120daysofworkundertheFund’sinsuranceduringthecalen-daryearprecedingthenoticeofsickness,or15monthspriortothenoticeofsicknesswithoutcalculatinginthesecondcasethedaysofworkrealisedduringthelastcalendartrimesterofthe15-monthperiod.Theamountof thedailysicknessbenefitcomesupto50percentofthedeemedminimumofthedailysalaryapplicable–onthebasisof the respective insuranceclass remuneration–duringthelast30daysofworkrealisedduringthecalendaryearpreced-ingthesickness.Thisamountconstitutesthebasicsicknessbenefitthatmaybe increased according to the family status of the sickemployee.Ofcourse, theemployerhas the right toask the sala-riedemployeetoproducesupportingdocumentsprovinghisorhersickness.
21 In what circumstances may an employee take a leave of absence?
What is the maximum duration of such leave and does an employee
receive pay during the leave?
Therearemanysituationswhereanemployeewouldbeentitledtotakealeaveofabsenceundercertainconditions.Themostsignifi-cant examples, togetherwith the correspondingmaximum dura-tions of each, are listed here below:• leavefortheeducationoftradeunionists–upto14daysofpaidleavewithinthesamecalendaryear;
• schoolandundergraduateuniversitystudentsupto28yearsofage–upto30daysperyear;remunerationunderconditionsisgivenbytheOrganisationfortheEmploymentofWorkforce;
• schoolandundergraduateuniversitystudentsover28yearsofage have the right to an additional 30 days’ leave per year at a maximum,butonlyfortheordinarylengthofstudiesincreasedbytwoyears,irrespectivelyofifthestudyprogrammehasbeenattendedcontinuouslyorintermittently;
• postgraduatestudents–upto10dayspercalendaryearforuptotwoyearswithoutremuneration;
• forvotingatnationalelections–thenumberofdaysdependson the distance to cover to reach the town where the voter is registered;leaveispaid;
• leaveduetosicknessoffamilymembers–theordinaryperiodissixdayswhethercontinuousorspreadwithinacalendaryear.The period is extended to eight days if the beneficiary has two childrenandto14daysifthebeneficiaryhasthreeormorechil-dren.Ifthebeneficiariesarespouses,eachoneisentitledtotheleave;leaveisunpaid;
• specialleaveisprovidedforminoremployeesthatarepupilsorstudentsatthesametime.Theyhaverighttotwodays’leaveforeachexamdaytheyparticipatein.Thisisunpaidleaveandmaynotbelessthan14days(eveniftheexamstakenarelessthanseven);
• leaveforbringingupchildren–followingthematernity leaveanduntil thechildreachesthree-and-a-halfyearsofage,eachworkingparentmaytakeanunpaidleaveofuptothree-and-a-halfmonths;
• leaveforvisitingachild’sschool–uptofourdayspercalendaryear;leaveispaid;
• marriage and childbirth leave – five or six (depending onwhethertheyworkfiveorsixdaysperweek)workingdaysforeachspousewithremuneration.Uponthebirthofachild,thefatherisentitledtotwodaysofleavewithpay;
• maternity leave – 17 weeks or 119 calendar days in total.Eightofthoseweeksmustbeallocatedbeforethescheduledoranticipateddateofbirth.Leaveispaidfor15daysiftheyoungmother has not completed one year with the employer, and for onemonthifshehas;
• leavefortakingcareofanewbornchild–foraperiodof30months after the end of the maternity leave, working mothers maystarttheirworkingdayonehourlaterorfinishitonehourearlier. Alternatively, it may be agreed with their employer that duringthefirst12monthstheyshalltaketwohoursoffaccord-ingly;inthatcasetheyshallhaveonehouroffforthefollowingsixmonths.Afatherwouldbeentitledtothesametimeoffiftherightisnotexercisedbythemother;leaveispaid;
• specialprovisionfortheprotectionofmotherhood.Thisben-efit is establishedbyLawNo.3655/2008andprovides for asix-month leave for mothers insured by the Social InsuranceInstitute. This leave is taken after the end of the maternityleaveandtheleaveforbringingupchildrenmentionedabove;in the event of protection of motherhood maternity leave, the Greek Manpower Employment Organisation shall pay to the employedmothermonthlyanamount equal to theminimumsalary as each time specified in the collective employment agree-ment, as well as proportional holiday leave on the basis of the above-mentionedamount;and
• leave without remuneration – this is subject to agreementbetween the employer and the employee.
22 What employee benefits are prescribed by law?
The most important employee benefits prescribed by law are holi-daybonus(seequestion19),unemploymentbenefit,childbenefit,military service benefit, family benefits, sickness benefit, marriage benefit, maternity benefit, special provision for the protection of motherhood,servicebenefit(foremployeeshavingcompletedmanyyearsofservice)andChristmasandEasterbenefit.
In view of the recent developments in the Greek economy, manybenefitsapplicabletopublicservantsandemployeesworkingunder labour contracts of either public or private lawhave beensignificantlycut,accordingtoLawNos.3833/2010and3845/2010.Remunerationbenefitsofeverykindhavebeendecreasedby20percent for employeesworking in the corepublic sector (public lawcorporate sector,municipalities, army, police, etc) and by 10 percentforemployeesworkingatprivatelawcorporatebodiesregu-larlysponsoredbythepublicsectororinwhichthepublicsectorhasownership rights.Furthermore,EasterandChristmaswelfarebenefitsandtheannualbenefitofpaidleavehavebeensetate250to e500each,subjecttothepublicemployeereceivingagrosstotalpay lower than e300permonth,accordingtoarticle3ofLawNo.3845/2010.NewdecreasesinwagesandbenefitstookplaceundertherecentlyvotedLawNo.3899/2010.ByvirtueoftheveryrecentNo.6ActofMinisterialCouncil,for
theimplementationofparagraph6ofarticle1ofLaw4046/2012,theregulatoryconditionsofcollectivelabouragreementsthathavealready expired or that have been terminated are valid only for a periodofthreemonthsfromthetimethatLaw4046/2012hasbeenin force. After that period and if in the meantime no new collective labouragreementissigned,thentheonlyregulatoryconditionsthatremaininforcearethosethatarerelatedtothebenefitsofmatura-tion,children,educationanddangerouswork,undertheconditionthatthosebenefitswereactuallyprovidedforinthecollectivelabouragreements that have expired or been terminated. Any other pre-scribed benefit shall be immediately terminated.
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23 Are there any special rules relating to part-time or fixed-term
employees?
Employment under rotation (or underemployment) Thisisfull-timework,butonlyforcertaindaysoftheweek,certainweeks of the month or certain months of the year, or a combina-tionofthesealternatives.Thedailyworkinghoursremainfull.Thisisfreelyagreedbetweenanemployerandanemployee,subjecttotheapplicable statutoryminimumsalaries,appliedaccordingly tothelesserhoursofworkagreed.AccordingtoLawNo.3846/2010,articletwo,paragraphthree,asamendedbyarticle17,paragraph1ofLaw3899/2010,anagreementforunderemploymentmustbeinwritingandmustbesubmittedtothelocalLIA.Underemploymentmayalsosubsequentlyoccurfollowingasignificantdecreaseintheemployer’sbusinessactivitiesandsubjecttoanagreementwiththecompetentlabourunion.Inthiscase,thedurationoftheunderem-ploymentmustnotexceedninemonthsofthesameyear.
Temporary employment (part-time employment)Thisisemploymentforalldaysbutforfewerhoursthantheordi-narystatutoryprescribedworkingschedule.Itissubjecttothesameproceduralformalitiesastheemploymentunderrotation(article38ofLaw1892/1990,asamendedbyarticle2ofLaw3846/2010).Thedisclosureofthepart-timecontracttotheLIAmustbemadewithineight days from the day on which it was signed, otherwise it is pre-sumed to conceal a full-time employment contract.The part-timeemployee, provided that he or she performs work on the same terms asemployeesofthesameclass,hasarightofprioritytoberecruitedtoafull-timejobinthesamecompany.Terminationoftheemploy-mentcontractduetothenon-acceptanceoftheemployer’sproposalfor a part-time employment by the employee is invalid. It is noted that the earnings of employees with a part-time employment contract arecalculatedonthebasisoftheearningsofacomparableemployeeandcorrespondtothehoursofthepart-timeemployment.Ifthepart-timeemploymentislessthanfourhoursperday,theremunerationofthepart-timeemployeesisincreasedby7.5percent.
Fixed-term employment contractsThesearefreelyagreedupon,subjecttotheconditionthatthemean-ingof‘fixedterm’mustnotbeabusivelyadoptedbyanemployerwhoinrealityintendstocoverhisorherpermanentneeds(seeques-tion10).
Post-employment restrictive covenants
24 To what extent are post-termination covenants not to compete, solicit
or deal valid and enforceable?
Although not explicitly prohibited, the validity of contractualclausesnottocompetemustnotbetakenforgranted;theseclausesarecontrolledaccordingtoarticles178(contractualtermcontrarytomoralstandards)and179(contractualtermlimitingtoagreatextentthefreedomoftheweakcontractualparty)oftheCivilCode,followingan evaluationof all the special conditionsof each spe-cificcase.Onebasicelement,whichsupports thevalidityof suchaclause,istheprovisionofconsiderationtotheemployeefortheundertaking of the obligation of non-competition that, as a rule,will be constitutedby thepayment of a reasonable restitution tocoverthefinancialdamagethattheco-contractingpartywillendureduringthecommittingperiod.Inpractice,averyhighsalarymayjustifyapost-terminationcovenantnottocompete.Conversely,thelack of provision of consideration is a very important element that wouldassist theweakerparty to challenge thevalidityofanon-competitionclause.Thereisnostatutorymaximumperiodfornon-competitioncovenants,butacourtwillassessthereasonablenessofthe period agreed.
25 Must an employer continue to pay the former employee while they are
subject to post-employment restrictive covenants?
No,thereisnosuchrule.However,inorderforpost-employmentrestrictive covenants to survive the anti-abuse test that will beappliedbythecourts,anyconsideration(payment,etc)giventotheemployeewillcountintheemployer’sfavour.InGreece,inpractice,suchconsiderationwouldbeahighersalary(duringemployment)and not a payment after the employment is terminated.
Liability for acts of employees
26 In which circumstances may an employer be held liable for the acts or
conduct of its employees?
Accordingtothegeneralprovisionofarticle914oftheCivilCode,anyonewhounlawfullydamagesanotherpersonisobligedtocom-pensatehimorher.Accordingtoarticle922of theCivilCode,amasterormistresswouldbeliableforanydamagesthathisorherservantcausedtoathirdpartybyhisorheractsoromissionsduringservice. By the combination of the above-mentioned provisions, it arisesthatunderthesamecircumstancesthatanemployerisliableforcompensationtoadamagedpartybecauseofitsownactionsoromissions, it will also be liable for the actions or omissions of its employees.
Taxation of employees
27 What employment-related taxes are prescribed by law?
Payment of income tax burdens employees, but employers areobligedbylawtodeductthetaxfromtheemployees’wageandtodisburseitrespectivelytothecompetenttaxofficewithinthefirstfortnightofeachtrimester.Thecalculationofthetaxthatemploy-ers are obliged to deduct is the following (article 1 of LawNo.3522/2006):regardingemployeesthatarepaidpermonth,aswellasthosepaideachdaywhoprovidetheirservicesunderanemploy-mentcontractformorethanayeartothesameemployerorunderan open-ended contract of employment, the monthly net income is definedbydeductingfromthegrosswageonlytheamountsofthelawfuldeductionsforobligatoryinsurancecontributionsforwhichtheemployeeisburdened.Thedefinitionof‘monthlynetincome’includesbothsalaryandanyotherpaypacketsofthesameperiod(overtime,workingonabankholidayoraSunday,etc),whichareall set in one payroll. Afterwards, every month the monthly net incomeisreadjustedtodefinetheoverallannualnetincomeofeveryemployee.Tocalculatetheoverallannualnetincome,thenetsalaryamountismultipliedby12,towhichisaddedaChristmasbonus,Easterbonusandholidaybenefits.Anyotheradditionalpaypack-agesarealsoaddedtothecalculation.Afterwards,theamountoftaxthathastobedeductediscalculatedaccordingtotheapplica-bletaxscales.Inpractice,iftheemployeehasnoothersourcesofincome,followingthesubmissionofhisorherannualtaxreturn,therewillnobefurthertaxtobepaid.
Moreover, independent taxation is imposed on compensa-tion paid to employees when they are dismissed and on vacation allowance.
Employee-created IP
28 Is there any legislation addressing the parties’ rights with respect to
employee inventions?
Thisusedtobegovernedbyarticle668oftheCivilCode,whichhasnowbeenabolished.Theapplicableruleisnowprovidedinarticle6ofLawNo.1733/1987,accordingtowhichallrightsrelatedtoan
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invention of an employee belong to the employee, except where the invention may be classified as:• an‘inventionofservice’,inwhichcasetherightsbelongexclu-sivelytotheemployer;or
• a‘dependedinvention’,inwhichcasetherightsaresplit,with40per cent going to the employer and 60 per cent to the employee.
‘Inventionofservice’istheproductofthecontractualrelationshipbetween an employer and an employee that is expressly aimed at the development of inventions. In cases of ‘invention of service’, an employeemaybeentitledtoadditionalremunerationiftheinven-tion is significantly profitable for the employer.
A ‘depended invention’ is an invention realised by an employee withtheuseofthemeans,informationandmaterialsoftheemployer.Inthissituation,theemployerhaspriorityovertheexploitationofthe invention in exchange for compensation given to the employee relative to the economicvalueof the invention.After completinghisorherinvention,theemployeemustnotifyhisorheremployeraccordinglyandtheemployerhasatimelimitoffourmonthsafterthenotificationtodeclareitsintentiontosubmitacommonapplica-tion together with the employee for the registration of the invention. Failureof theemployer todeclare its intentionwithin theabove-mentionedperiodgivesarighttotheemployeetosubmitanapplica-tion by him or herself and register and exploit the invention in his orherownnameandaccount.Anemployeemaynotcontractuallywaive any of his or her rights mentioned above.
Data protection
29 Is there any legislation protecting employee privacy or personal data?
If so, what are an employer’s obligations under the legislation?
Yes,LawNo.2472/1997(theDataProtectionLaw),asamendedby Law No. 3471/2006, protects employee personal data. Anemployer isobliged toannounce to theDPAthepossessionofadatabase, the transfer of a third party’s database, the interconnec-tionofdatabasesandtheexistenceofaclosed-circuitTVsystem.When data is related to sensitive information (information thatreferstothereligious,philosophical,national,politicalbackgroundorbeliefs,sexuallife,previouscriminalconvictions,health,socialwelfare,etc,ofanemployee),theLawrequirespriorapprovalbytheDPA.Forpracticalreasons,theLawalsoprovidesforexcep-tionsfromtheseobligations–forexample,wheretheprocessingisrealisedforthepurposesofanemploymentrelationshiporwherethisprocessisnecessaryforthemutualfulfilmentofcontractualorlegal obligations and the employee has been informed in advance. The employer, at the stage of the collection of personal data, is obliged to inform the employee of the exact identification details of theemployerorhisorherrepresentative,thepurposeofprocessingpersonaldataandtherecipientsofsuchdata.Theemployeemustalso be informed that he or she has a right of access to his or her personal data file and a right to deny the processing of his or her personal data.
Business transfers
30 Is there any legislation to protect employees in the event of a
business transfer?
In the event of a corporation being transferred, the relevant impact on labour relations is regulated by article 4(1) of PresidentialDecreeNo.178/2002,throughwhichGreecehasadoptedDirective98/50/EC. Inparallel, article6(1)ofLawNo.2112/1920, article9(1)ofRoyalDecreeNo.16of18July1920andarticle8ofthePresidentialDecreeof8December1928(regardingtheprotectionoftherightsofemployeesofpublicorder,wherenowaiverofrelevant
rightsisexcused)arealsoinforce.Bythecombinationoftheabove-mentioned provisions, it is provided that: • theprotectionoftheemployeeisnotlimitedtotheprotectionoftherightofcompensationaccordingtoLawNo.02112;
• the new employer assumes all the pre-existing employer’sobligations;
• thelabourrelationshipispreservedinitsentirety;and• theemploymentpositionissecuredandtheemployee’sdemo-
tion is forbidden.
Termination of employment
31 May an employer dismiss an employee for any reason or must there
be ‘cause’? How is cause defined under the applicable statute or
regulation?
Employment contracts of an indefinite time can be terminated withoutrestraintsandatanytimebytheemployer,providedthathe or her abides by the legal formalities, that is, notification to the employee of the written termination of the employment contract andpaymentofthelawfulcompensation.Intheeventofthedura-tionoftheemploymentcontractbeinglessthan12months(‘trialperiod’,accordingtoarticle17,paragraph5ofLaw3899/2010),theemployermayterminatethecontractwithoutanyformalities,having no obligation to give compensation to the employee.Fixed-termemploymentcontractsterminateipsojure,without
the obligation of compensation or of any other action, when their fixeddurationexpires.Nevertheless,intheeventofaseriousreasonthatcouldjustifytheterminationoftheemploymentcontractbeforeits expiry date, the employer (and the employee) may terminatethe employment contract before that date,without recovery.Thelawdoesnotspecifywhichreasonsmaybeconsideredasserious;thereforethisislefttothejudgementofthecourt.Anyeventthatobjectively, according to good faith and moral conventions, consti-tutesabreachoftheessentialtermsoftheemploymentcontract,andbecauseofwhichtheemploymentrelationshipmaynotreasonablycontinueuptoitsexpirydate,maybeconsideredasaseriousreason.Indicatively,caselawhasinthepastconsideredasseriousreasonsthe following:• breachbytheemployeeofessentialtermsofthecontract;• continuousandunjustifiableabsenceoftheemployee;• improperandabusivebehaviouroftheemployeetowardshisorheremployer;
• non-fulfilmentofhisorherworkwithassiduity;and• demonstrationofprofessionalinsufficiency.
Theinvocationonthepartoftheemployerofaseriousreasoniscon-trolledunderGreeklaw(article281oftheCivilCode).Accordingtothis article, exercising a right is prohibited if it manifestly exceeds the limits imposed by good faith or morality or the social and economic purposeoftheright.Indicatively,caselawhasinthepastconsideredasseriousrea-
sons the following:• theemployeewasdismissedbecauseheorsherefusedtogiveuphisorherlegalrights;
• theemployeedevelopedhisorhertradeunionactionandtookpartinalawfulstrike;
• theemployeesubmittedforaperiodoffworkaccordingtothelaw;or
• theemployeeprotestedtothecompetentgovernmentauthoritiesfor violations of the law by the employer.
In the case of such an abusive andunfair cause the employmentcontract is considered as not terminated and the employee still has right to the salary as provided by the law.
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31 Must notice of termination be given prior to dismissal? May an
employer provide pay in lieu of notice?
This is only applicable to employment contracts of indefinite term. Compensationiscalculatedaccordingtotheyearsofserviceatthesame employer and if the appropriate notice is given, it may be half ofwhatwouldbeifnonotice isgiven.Accordingtothenewaw(4093/2012),subjectsrelatingtothenoticeoftermination,aswellasofthecompensation,areregulatedasfollows:
Length of employment with same employer
Without advance notice
With advance notice
Compensation (times nominal
salary)
Advance notice
Compensation (times nominal
salary)
1 year completed to 2 years
2 months 1 month 1 month
2 years completed to 4 years
2 months 2 months 1 month
4 years completed to 5 years
3 months 2 months 1.5 months
5 years completed to 6 years
3 months 3 months 1.5 months
6 years completed to 8 years
4 months 3 months 2 months
8 years completed to 10 years
5 months 3 months 2.5 months
10 years completed 6 months 4 months 3 months
11 years completed 7 months 4 months 3.5 months
12 years completed 8 months 4 months 4 months
13 years completed 9 months 4 months 4.5 months
14 years completed 10 months 4 months 5 months
15 years completed 11 months 4 months 5.5 months
16 years completed 12 months 4 months 6 months
17 years completed12 months + 1 month
4 months6 months
+ 0.5 month
18 years completed12 months + 2 months
4 months6 months + 1 month
19 years completed12 months + 3 months
4 months6 months
+ 1.5 months
20 years completed12 months + 4 months
4 months6 months
+ 2 months
21 years completed12 months + 5 months
4 months6 months
+ 2.5 months
22 years completed12 months + 6 months
4 months6 months
+ 3 months
23 years completed12 months + 7 months
4 months6 months
+ 3.5 months
24 years completed12 months + 8 months
4 months6 months
+ 4 months
25 years completed12 months + 9 months
4 months6 months
+ 4.5 months
26 years completed12 months
+ 10 months4 months
6 months + 5 months
27 years completed12 months
+ 11 months4 months
6 months + 5.5 months
28 years completed and further
12 months + 12 months
4 months 6 months + 6 months
Note1 Employment contracts of indefinite duration will be deemed probation-
ary for the first 12 months from the date of effect and may be terminated without prior notice and without dismissal compensation, unless other-wise agreed by the contracting parties.
2 For the calculation of extra compensation provided for the employers of 17 completed years of experience, a regular salary over €2,000 is not taken into account.
33 In which circumstances may an employer dismiss an employee without
notice or payment in lieu of notice?
Employmentcontractsoffixedtermareterminatedupontheirexpi-rationdate,withoutanyformalitiesneededandofcoursewithoutany compensation paid to the employee.Furthermore,asmentioned inquestion31, intheeventof the
indefinite-termemploymentcontractbeinglessthan12months(‘trialperiod’,accordingtoarticle17,paragraph5ofLaw3899/2010),theemployermayterminatethecontractwithoutanyformalities,havingno obligation to give compensation to the employee.
Finally, the employer may terminate an employment contract of indefinitetermwithoutpriornoticeandwithoutanycompensation,inthecaseofasubmissionofalawsuitagainsttheemployeeforanoffencecommittedinthecourseofhisorherservice(article5,para-graph1ofLaw2112/1920).
34 Is there any legislation establishing the right to severance pay upon
termination of employment? How is severance pay calculated?
Seequestion32.Uponterminationwithoutdismissal,forexample,upontheexpiryofafixed-termemploymentrelationship,thereisnoright to severance pay.
35 Are there any procedural requirements for dismissing an employee?
Adismissalmustbemadeinwritingandanycompensationowedtotheemployeemustbepaidupondismissal,otherwisethetermi-nationoftheemploymentcontractisnotvalid.AccordingtoLawNo.3863/2010article74,paragraph3,whenthecompensationfortermination of the contract exceeds the salary of two months, the employermustpaytothedismissedemployee,atthetimeofdis-missal, part of the compensation, corresponding to salaries of two months.Theremainingamount ispaid inbimonthly instalments,each of which cannot be lower than earnings of two months, except thelastinstalment,whichcanbesmaller.Thefirstinstalmentmustbe paid the day after completing two months of the dismissal. A notificationofthedismissalmustbefiledwiththecompetentorgani-sation for the employment of workforce or, if there is no competent officeinthevicinity,atthelocalpolicestation.Nopriorapprovalbyanyauthorityisrequiredforthedismissal.
36 In what circumstances are employees protected from dismissal?
In principle, an employer is entitled to dismiss employees freely. The following categories are generally protected:• employeeswhoareonleave;• employeeswhoareservingtheirmilitaryservice;• pregnantwomen,duringtheirpregnancyandforoneyearafterthebirth;
• drugaddicts,providedthattheyparticipateinaprogrammefortheircure;and
• tradeunionistswithoutfollowingaspecialprocedureprescribedby law.
Allemployeesareprotectedagainstunfairdismissal,interalia,inthefollowingcircumstances:• whendismissalisattributedtotheirsexorfamilystatus;• whendismissalisattributedtothehostileorvengefulbehaviour
of the employer following any form of harassment to which the employeedidnotconsent;and
• whendismissal isattributedtothefactthattheemployeehasconfessedlawfullyinacourtoflaworotherauthority.
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37 Are there special rules for mass terminations or collective dismissals?
Yes. Mass terminations or collective dismissals are defined as dis-missals realised by companies that employ at least 20 employees, thereasonsforwhicharenotattributabletotheemployeesandthatexceedcertainnumericallimits.Theprotectiveprovisionsinrelationto collective dismissals only apply to employment contracts of an indefinite term. Mass terminations or collective dismissals must take place
withinthelimitssetbythelaw.Thus,thelimitsbeyondwhichthedismissalsareconsideredabusiveare(accordingtoarticle74,para-graph1ofLawNo.3863/2010)uptosixemployeesforcompaniesthatoccupyfrom20upto150employees;andupto5percentofthepersonnelandupto30employeesforcompaniesthatoccupymorethan150employees.
An employer who wishes to proceed to collective dismissals mustcomplywiththefollowingproceduralsteps:• informtherepresentativesoftheemployeesaboutitsintentionand discuss them in order to investigate possible alternativesolutions;
• notify inwritingtheemployee’srepresentativesofthereasonsforwhichthecollectivedismissalsareplanned,thenumberofpeopleemployedintotal,thenumberofemployeesthataretobe dismissed classified by sex, age and specialisation and any usefulinformationthatmayhelpthepropositionofalternativesolutions;and
• submittheabove-mentioneddocumentstotheprefectandLIAofficial.
The above procedures are followedwithin time limits prescribedinstatute.Ifthereisnoagreementbetweentheemployerandtheemployees,theprefectortheministeroflabourmaynotconsenttothecollectivedismissals;inthelattercase,theemployershalllimitthedismissalstothenumberofemployeeslimitedbytheprefect’sorminister’s decision. If the relevant prefect’s or minister’s decision is notissuedwithintheprescribedtimelimits,theemployermayfreelydismissthenumberofemployeesthatititselfagreedtoduringthenegotiations with the employees.
In all other respects, the provisions regarding dismissal of employeesemployedunderacontractofindefinitetermapply(writ-tennotice,compensation,etc).
38 Are class or collective actions allowed or may employees only assert
labour and employment claims on an individual basis?
Accordingtoarticle668ofCodeofCivilProcedure(CCP),duringtheprocedureunderarticles664to676(labourdisputes)morethanoneemployeemay sueorbe suedwhen the rightsorobligationsderiveonlybythesamelegalcause.Furthermore,article669of theCCPprovides thatrecognised
professional trade unions of employees or employers, recognisedassociationsofthemorchambershavetherighttoexerciseinfavourof their members the rights that derive from a collective agreement orotherprovisions in lieuof the collective agreement,unless themembershaveexplicitlyexpressedtheiropposition.However,they
maintaintherighttointerveneinfavourofapartyifthispartyisamember of them or member of any of the organisations, belonging totheassociation;orinanyproceedingsrelatingtotheinterpreta-tion or application of a collective employment contract in which theyparticipate,orofaprovisioninlieuoftheprovisionsofsuchacollective agreement, in order to protect the collective interest that is connectedtotheoutcomeofthetrial.
39 Does the law in your jurisdiction allow employers to impose a
mandatory retirement age? If so, at what age and under what
limitations?
UnderGreeklegislation,thereisnoprovisionrequiringemployeestoceaseworkwhentheyhavecompletedtherequirementsnecessarytoreachretirementage;anemployee’sreachingretirementageshallnotresultintheautomaticterminationoftheemploymentrelation-ship between the employee and his or her employer. Provision is made within the law for a separation from employment or dismissal inreturnforreducedcompensationundercertainconditions.
Dispute resolution
40 May the parties agree to private arbitration of employment disputes?
No.Accordingtoarticle867oftheCCP,privatelawdisputesmaybesubjecttoarbitrationifthepartieswhoagreetoarbitrationhavethepowertofreelydisposeofthesubjectmatterofthedispute,butthearticleexpresslyexcludesalldisputesgovernedbyarticle663oftheCCP,thatis,employmentlawdisputes.Theselatteraresubjecttospeciallitigationproceduresthatareprovidedinarticles664to676 of the CCP. Forissuesconcerningtheprocedureofresolvingcollectivedis-
putes,ifthenegotiationsfail,thepartieshavetherighttorequestmediation services or to resort to arbitration, according to the pro-ceduredescribedinLawNo.3899/2010(articles14to17).
41 May an employee agree to waive statutory and contractual rights to potential employment claims?
Accordingtoarticle679oftheGreekCivilCode,anemployeemaynotagreetowaivethespecificstatutoryrightsthatareprovidedinarticles656to658,659(2),667,668(2),670,674,677and678.The most important of these rights are:• therighttoreceiveasalarywheretheemployerisindelayofpayment;
• therighttoreceiveasalarywhentheemployeeispreventedfromofferinghisorherservicesforseriousreasons;
• rightstoadditionalpaymentforadditionalwork;• therighttoannualleave;and• therighttoterminatethecontractofemployment.
Also, it may not be agreed that an employer can offset an employ-ee’s salary against debts of the employee and that an employer has
In the fifth year of recession in Greece, the hottest employment topic is the unemployment rate, which reached a rate above 25 per cent and is now the highest among the eurozone countries. Another popular topic is the statutory minimum salary, currently set at e586, and the debate as to whether it could be set lower than this amount. Employment lawyers are busier dealing with cases of unpaid employees of bankrupt businesses rather than with drafting or reviewing employment contracts. Although not strictly within the
scope of this book, the debate regarding the possibility of dismissing public servants (who enjoy a status of permanence by virtue of the constitution) is also an employment law issue (apart from a political and constitutional one). In the meantime, structural reforms are also taking place in the following areas: the unification of the social security institutions and the electronic submission of all forms relating to employment and social security contributions.
Update and trends
Iason Skouzos & Partners Greece
www.gettingthedealthrough.com 121
no responsibility for the implementation of health and safety at workregulations.
42 What are the limitation periods for bringing employment claims?
Thegeneralstatuteof limitationsisfiveyears,byvirtueofarticle250(17)oftheCivilCode.However,otherprovisionsofspecial lawsprovide forspecific
limitationperiods,concerningseveralemploymentclaims,suchas:
• any employee claimarising from invalidityof the agreeddis-missalmustbeservedbylawsuittotherelevantemployerwithinthe mandatory three-month period following termination of the employmentrelationship,otherwiseitisinadmissible(article6paragraph1ofLaw3198/1955);and
• anyemployeeclaimforpaymentorcompletionofthecompen-sationdue todismissal, according toLawNo.2112/1920orRoyalDecree16/18.07.1920,isunacceptableifthattreatmentwas not disclosed to the employer within six months after it becamedue(article6,paragraph2ofLaw3198/1955).
Theodoros Skouzos
43 Akadimias Street Tel: +30 210 3633243
10672 Athens Fax: +30 210 3633461
Greece [email protected]
www.taxlaw.gr
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labour & employment 2013 ISSn 1744-0939
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