In Greece, employment law permits several types of employment agreements, each with its unique characteristics and regulations.

Fixed-Term Contracts

Fixed-term contracts, as defined in Greek labor legislation, establish a predetermined end date for employment. These contracts necessitate written documentation. There are limitations on renewals, and a justification is required if a certain number of renewals are exceeded.

Indefinite Contracts

Unlike fixed-term agreements, indefinite contracts, also known as permanent contracts, do not have a pre-defined end date and continue indefinitely until either party terminates them. These contracts provide the employee with greater job security.

Part-Time Agreements

Part-time agreements involve reduced working hours compared to a full-time position. They can be either fixed-term or indefinite. Part-time agreements must be documented in writing.

Collective Bargaining Agreements

In addition to individual contracts, Greece has a robust tradition of collective bargaining. These agreements, negotiated between trade unions and employer associations, set the terms and conditions for a group of employees within a specific industry or company.

Written Requirements

While not mandatory for all employment agreements, Greek law requires written documentation for part-time work, temporary agency work, fixed-term contract renewals, and teleworking arrangements.

Employment agreements in Greece should incorporate several key clauses to ensure clarity, compliance with labor laws, and protection for both employers and employees.

Basic Information

The agreement should clearly identify the employer and employee, including full names and company details. It should also specify the employee's job title, department, and official commencement date.

Compensation and Benefits

The agreement should outline the gross monthly salary, payment schedule, and any applicable allowances. It should define the standard working week, including daily and weekly working hours. The process for overtime work, compensation rates, and any limitations should be established. The agreement should detail entitlements to annual vacation leave, sick leave, public holidays, maternity leave, paternity leave, and parental leave, as mandated by Greek labor law.

Term and Termination

The agreement should specify whether the employment is indefinite-term or fixed-term. Indefinite-term contracts are the norm; fixed-term contracts require justification. It should outline grounds for termination by either party, following Greek labor law's provisions for fair dismissal and required severance pay based on length of service.

Confidentiality and Intellectual Property

If applicable, the agreement should include a clause requiring the employee to maintain confidentiality regarding the employer's trade secrets and sensitive information. It should address ownership and rights to intellectual property created by the employee during their employment.

Additional Considerations

The agreement should emphasize adherence to all applicable Greek labor laws and regulations. It should establish a process for resolving any disagreements arising from the employment agreement.

Probationary periods are a standard feature in Greek employment contracts, serving to allow employers to assess an employee's suitability for the role and vice versa.

Statutory Probationary Periods

By Greek law, a default probationary period is established for indefinite-term employment contracts. Unless otherwise agreed upon in the contract, the first 12 months of employment are considered probationary. During this initial period, either party can terminate the contract without notice, differing from standard termination procedures that typically require a notice period. Employers are also not obligated to provide a reason for termination during the probationary period. However, dismissals cannot be based on discriminatory grounds, even during probation.

Flexibility in Agreements

The statutory probationary period is not rigid. Employers and employees can agree on a different timeframe in the employment contract, which could be shorter or longer depending on the job's specific circumstances.

Key Considerations

There are additional points to consider regarding probationary periods in Greece. Probationary periods do not apply to fixed-term contracts, which typically have a pre-determined end date. Also, during probation, employees still enjoy basic employment rights, such as minimum wage and health insurance.

Confidentiality and non-compete clauses are common in Greek employment agreements, designed to safeguard an employer's legitimate business interests by limiting an employee's ability to disclose confidential information and engage in post-employment activities.

Confidentiality Clauses

Confidentiality clauses generally prevent employees from revealing an employer's confidential information to third parties during and after their employment. However, there's a clear distinction between confidential information and general professional knowledge acquired by the employee. Greek courts uphold this distinction. A confidentiality clause can limit the disclosure of trade secrets or other information that provides the employer a competitive edge. However, it cannot stop an employee from utilizing the general skills and knowledge acquired during their employment.

Non-Compete Clauses

Non-compete clauses limit an employee's capacity to work for a competitor or participate in a similar business activity after employment termination. These clauses are enforceable in Greece but are subject to stricter scrutiny. For a non-compete clause to be valid, it must meet several criteria:

• Legitimate Business Interest: The employer must show a legitimate business interest that justifies the restriction on the employee's ability to work.
• Reasonable Scope: The clause's restrictions, including duration, geographic area, and activity restricted, must be reasonable considering the employer's interest. This is evaluated on a case-by-case basis, taking into account the employee's seniority and the business's nature.
• Compensation: A crucial factor for enforcing a non-compete clause is reasonable compensation for the employee in return for the limitations on their future employment opportunities. The law doesn't specify an amount, but courts generally expect compensation to be proportionate to the restrictions imposed, with a range of 50% to 100% of the employee's salary being a common benchmark.

Confidentiality and non-compete clauses can be effective tools for employers in Greece to protect their confidential information and competitive edge. However, compliance with legal requirements regarding reasonableness and providing fair compensation to the employee is essential for their enforceability.