21-01-2019

Employment Introduction

Author/s

  • Kostas Papadimitriou, Professor of Labour Law at National and Kapodistrian University of Athens School of Law, Attorney at Law KOSTAS D. PAPADIMITRIOU & PARTNERS KDMP LAW FIRM

If the first labour laws date back to the early 20th century, it was only after the end of the World War II that their development grew. Then, the new Constitution, adopted after the fall of the dictatorship, in 1975, included, for the first time, provisions devoted to work, such as the recognition of the right to work, the freedom of association, the right to strike and to collective bargaining. Greece has also ratified the majority of ILO Conventions, the ECHR and the European Social Charter. Finally, the influence of the legislation of the European Union is considerable and gave new impetus to improving the national system of protection of workers. Indeed, Greek labour law provides answers to almost all current questions relevant to work. Provisions regulating labour relations have, however, not yet been codified into a Labour Code.

Individual labour relations

Labour law applies to subordinate workers only. The notion of “subordination”, indeed a central one, is not defined in the law, but it has been developed by case law. It is characterized by the performance of work under the authority of the employer who has the power to give orders and to control its execution. A presumption in favor of subordinate work exists in case where work is personally provided solely or mainly for the same employer and for nine consecutive months. The employer has the option of proving that the worker operates in independently.

The law does not require an employment contract to be drafted in writing. The employer must, however, provide the employee, within two months following the conclusion of the contract, with a written document mentioning the essential elements thereof.

Working time is 40 hours per week. It is spread over five or six days over the week pursuant to the provisions of the corresponding collective agreement or the individual employment contract. The employee must provide, if asked, without further formalities, five hours of “overwork” per week, if his work is spread over five days, and eight hours per week if it is spread over six days. This work is paid with an increase of 20%. Beyond these hours, the increase is 40% for the first 120 hours per year and 60% for higher annual numbers (overtime). Finally, in case of overtime for which the prescribed formalities were not complied with, the increase is 80%. Another system of disposition of working time (annualized) may nevertheless be established by collective agreement: in this case companies can during a period of supplementary activity employ workers beyond the legal hours, within limits set by law, subject to a corresponding reduction schedule or to a grant of a rest during another period of the year.

The salary, a fundamental employee right, is the counterpart of the employer for the work done. It is paid over 14 months (12 months of monthly wages over the Christmas bonus, Easter and holiday pay). Salaries are determined by law, collective agreements or individual employment contracts. An interprofessional minimum wage is set by law. Collective agreements and employment contracts may provide for a higher salary.

All employees are entitled to a paid holiday leave per calendar year. This leave is 20 days per year for employees with a five-day working week (24 days for those working six days per week). It is increased up to five weeks based on seniority of the employee. A holiday bonus, amounting to half a monthly salary, is also provided. During the leave period the employee is entitled to his normal remuneration, all salary accessories included. If the leave is not granted before the end of the calendar year of reference, an indemnity must be paid, increased by 100%. Other special leaves are provided in view of personal or family events of the employee.

An employee cannot be dismissed without a serious reason, while pregnant, or during 18 months following delivery. At the end of maternity leave (17 weeks), the employee has the right to return to her former position of employment or to an equivalent one with the same working conditions. Upon return from maternity leave the employee is also entitled to a reduction in working time.

In the field of protection of health and safety of employees, significant progress has been made under the impact of E.U. law. A general obligation to protect the health and safety of employees is recognized.

The employer must observe the principle of equal treatment of employees. Any divergence should be based on objective criteria only. Moreover, when making decisions, the employer must not take into account certain distinctive features of the person of the employee, such as those relating to origin, race, sex, sexual orientation, age, opinions, trade union membership, pregnancy, disability.

Specific rules exist on atypical contracts, i.e. part-time work, fixed-term contracts, temporary agency work and telework. These rules are designed to ensure equal treatment between these workers and ‹regular› workers of the company, and to provide certain minimum guarantees which vary depending on the particularities of each respective form of employment.

The legality of the dismissal of workers on open-ended contracts is conditional upon the written notification of a letter and on the payment of severance pay; the lack of either prerequisite renders the dismissal void. The amount of severance pay depends on the monthly salary and on seniority of the employee in the company. Its maximum amount is the equivalent of 12 months of salary for employees with over 16 years of seniority in the company.

However, in case of compliance with the legal due notice requirement (up to 4 months depending on employee seniority), the amount of severance pay is reduced by half. Employees with less than one year of seniority are not entitled to any severance pay or to a notice. The lawfulness of the dismissal of an employee on open-ended contract does not require the existence of a reason. Employers can dismiss without having to provide any justification for the termination. However, the dismissal may be reviewed by the competent court if the employee invokes an abuse of rights. Abusive dismissals are e.g. those guided by a spirit of revenge against the employee, or by discriminatory reasons, or when the dismissal on economic grounds is not justified as the ultimate measure. If the dismissal is classified as unlawful, it shall be void, and the employer shall pay the wages up to reintegration of the employee.

On the other hand, a fixed-term contract normally terminates upon expiry of the agreed term. No severance pay is provided. The contract may be terminated before the end of the term, by the employer or the employee alike, due to a serious reason.

In the event of collective dismissal a special procedure must be followed.

Collective labour relations

Freedom of association, the right to strike and the right to collective bargaining are guaranteed under the Constitution.

Employees are thus free to join the union of their choice or not to join any union. Freedom of association is also recognized in its collective dimension: the freedom to form a union, the freedom to determine its statutes, and trade union pluralism are guaranteed. Greek unions have chosen to participate in a single national Confederation, the so-called GSEE. Law 1264/1982 provides for specific rules concerning the internal democracy of unions and the protection of union activity within the company.

The right to strike may be exercised only by lawfully established trade unions. Wildcat strike action is forbidden. If a strike is declared by a first level union, the decision must be adopted in principle by its General Assembly. If a strike is declared by a Federation or a Confederation, the decision may also be adopted by its Council of Administration. A strike notice is required within at least 24 hours before the intended strike action commencement, or within at least four days before commencement in case of essential services companies. A strike must also be accompanied by security personnel and, in the case of essential services companies, by minimum service personnel. Abundant case law exists regarding the abuse of the right to strike. Lockout is prohibited, and so is the hiring of employees to replace strikers.

The right and the obligation to bargain are affirmed for both workers and employers. There are different categories of collective agreements, such as the National Interprofessional Collective Agreement, the branch agreements, the professional agreements (rare) and the company agreements. Only the most representative unions of employees are authorized to conclude collective agreements. Collective agreements apply only to members of the signatory organizations, with the exception of company agreements, which apply to all staff, and of the clauses of the National Interprofessional Collective Agreement other than wage, that apply to all workers of the country. The Minister has the power to extend the application of collective agreements. The principle of favor has a primary value on collective agreements hierarchy. The National Interprofessional Collective Agreement, the branch agreement and the company collective agreement are applicable, only if they are more favorable compared to agreements of another level. In case of negotiation deadlock, a settlement procedure is provided for by Law 1876/1990, including conciliation, mediation and arbitration. Arbitration and mediation are provided by the Mediation and ArbitrationOrganization. The mediators / arbitrators chosen by this Organization are independent in the exercise of their function.

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