termination of employment in Greece: laws & severance policies

Legal Grounds for Termination of Employment in Greece

The termination process is dictated by the employment and collective agreements, contract type, and reasons for termination. In the case of indefinite contracts, the employer is required to issue a written notice of termination, and the employee must be registered with the Unified Social Security Fund (EFKA). Acceptable grounds for termination include:

   
• Poor performance or inadequate job performance.
   
• Misconduct or violation of company policies.
   
• Redundancy due to economic or operational needs.
   
• Expiration of a fixed-term contract.
   
• Mutual agreement between employer and employee.

Employment Laws and Severance Policies in Greece

Greece has established comprehensive employment laws that outline the procedures and obligations for terminating employment relationships. These laws aim to protect the rights of both employers and employees, ensuring fair treatment during the termination process.

Notice Period in Greece

If notice periods is different from statutory norms, collective agreements may specify them. The duration of the notice period depends on the employee's tenure and the grounds for termination. In cases where termination is initiated by the employer, the notice period is as follows:

Employers are obligated to provide written notice to the employee. In cases of dismissal for gross misconduct, notice periods may not apply, allowing for immediate termination.

Severance Pay in Greece

Severance pay in Greece is determined by the duration of the employee's tenure. After one year of service, employees are eligible for the following severance payments:

• Resignation: no severance
• 1-4 years of service: 2 gross salaries
• 4-6 years of service: 3 gross salaries
• 6-8 years of service: 4 gross salaries

Probation Period in Greece

The first 12 months of indefinite employment contracts are considered to be the probationary period during which the employer may terminate the employment contract without notice and without severance pay.

Process for Ending Employment in Greece

   
• Providing written notice to the employee, specifying the termination date.
   
• Calculating and paying any owed severance pay based on the employee's length of service.
   
• Notifying the competent labor authorities within four days of the termination through the "ERGANI" platform.
   
• Ensuring all due wages, unused leave, and other entitlements are settled promptly.

Employee Rights During Termination in Greece

Unfair Dismissal Protections

Greek law prohibits dismissals based on discriminatory reasons such as race, gender, religion, or political beliefs. Employees who believe they have been unfairly dismissed can challenge the termination in court within three months.

Grievance Procedures

Grievance procedures allow employees to raise concerns regarding workplace issues, including termination. Employees can file complaints with the Labor Inspectorate or pursue legal action if necessary.

Final Pay and Benefits

Upon termination, employers are responsible for settling final payments, including unpaid wages, accrued bonuses, and unused annual leave. These payments must be made promptly upon termination.

What Termination Documentation Is Required by Law?

Employers in Greece must provide the following documents upon termination:

   
• A written termination notice.
   
• A digital notice of contract termination submitted through the "ERGANI" system within four days.
   
• Final payslips detailing all payments made upon termination.
   
• Relevant tax documents related to the termination.

How to Stay Compliant as An Employer in Greece

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. And if you need to terminate employment, it’s critical to adhere to local compliance laws. That’s the advantage of using a trusted Employer of Record like Playroll. They can:‍

• ‍Handle international compliance: Different countries each have their own federal and local laws governing employee rights. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. 
• ‍Run payroll for your global team: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
• ‍Scale your team anywhere: Legally hire and swiftly onboard new hires in 180+ regions without the need for entity set-up by leveraging Playroll's infrastructure, so you can freely explore new markets and focus on growth.