Navigating employment termination in Greece requires a thorough understanding of the country's labor laws, which are designed to protect employees and ensure fair treatment. The process involves specific requirements regarding notice periods, severance pay, and procedural steps that employers must strictly adhere to. Failure to comply with these regulations can lead to significant legal challenges and financial penalties for the employer.
Understanding the nuances of Greek labor law is crucial for businesses operating in the country, whether they are terminating an employee with or without cause. The legal framework provides clear guidelines, but also imposes strict obligations on employers to ensure terminations are handled correctly and lawfully.
Notice Period Requirements
In Greece, the required notice period for termination depends primarily on the employee's length of service with the company. Different rules apply depending on whether the termination is initiated by the employer or the employee. When an employer terminates an employment contract of indefinite duration, they must provide written notice or pay severance in lieu of notice. The minimum notice periods are legally defined based on tenure.
| Length of Service | Minimum Notice Period (Employer Initiated) |
|---|---|
| Up to 1 year | 1 month |
| 1 year to 2 years | 2 months |
| 2 years to 5 years | 3 months |
| 5 years to 10 years | 4 months |
| 10 years to 15 years | 5 months |
| 15 years to 20 years | 6 months |
| More than 20 years | 8 months |
These periods represent the minimum required notice. Employment contracts or collective bargaining agreements may stipulate longer notice periods, which would then apply.
Severance Pay Calculations and Entitlements
Severance pay in Greece is a significant component of the termination process and is also calculated based on the employee's length of service and their last regular monthly salary. The amount of severance depends on whether the employer provides the full statutory notice period or terminates the employment immediately by paying severance in lieu of notice.
- Termination with Notice: If the employer provides the full statutory notice period, the employee is entitled to 50% of the full severance amount they would receive if terminated without notice.
- Termination without Notice (Payment in Lieu): If the employer terminates the employment immediately without providing notice, the employee is entitled to the full statutory severance amount.
The full statutory severance amount is calculated based on the employee's years of service:
| Length of Service | Full Severance Pay (Monthly Salaries) |
|---|---|
| Up to 1 year | 2 |
| 1 year to 4 years | 3 |
| 4 years to 6 years | 4 |
| 6 years to 8 years | 5 |
| 8 years to 10 years | 6 |
| 10 years to 15 years | 8 |
| 15 years to 20 years | 10 |
| More than 20 years | 12 |
For employees with more than 17 years of service, the severance pay is capped at 12 monthly salaries. For employees who commenced employment before March 12, 2012, and have more than 17 years of service, additional severance may be payable, calculated based on specific rules for their tenure beyond 17 years up to a maximum of 15 additional monthly salaries.
Grounds for Termination
Greek law distinguishes between termination with and without cause, although the concept of "cause" is interpreted differently than in some other jurisdictions.
- Termination Without Cause (Ordinary Termination): An employer can terminate an employment contract of indefinite duration without specific "cause" in the sense of employee misconduct or performance issues, provided they follow the correct procedure, provide the required notice (or pay in lieu), and pay the statutory severance. This is the most common form of termination.
- Termination With Cause (Summary Dismissal): An employer can dismiss an employee immediately without notice or severance pay only in cases of "serious cause" (βαρέως παραπτώματος). This typically involves severe misconduct by the employee that fundamentally breaches their contractual obligations or makes the continuation of the employment relationship untenable. Examples might include theft, serious insubordination, or repeated serious breaches of company policy after warnings. The burden of proof for "serious cause" lies heavily on the employer.
Termination due to redundancy or restructuring is generally treated as termination without cause, requiring notice or payment in lieu and severance pay.
Procedural Requirements for Lawful Termination
To effect a lawful termination in Greece, employers must adhere to specific procedural steps:
- Written Notice: The termination must be communicated to the employee in writing. The written notice should clearly state the employer's intention to terminate the employment contract and the effective date.
- Registration with ERGANI: The termination must be registered electronically with the ERGANI information system (the national labor information system) within a specific timeframe (usually within 4 calendar days from the date of termination). This registration is mandatory and serves as official notification to the labor authorities.
- Severance Payment: The statutory severance pay must be calculated correctly and paid to the employee upon termination or within a very short period thereafter. Proof of payment is essential.
- Issuance of Certificates: The employer must provide the employee with necessary certificates, such as a certificate of employment and documents required for unemployment benefits.
Failure to follow these procedural steps, even if the underlying reason for termination is valid, can render the termination null and void, potentially leading to reinstatement orders or significant compensation awards.
Employee Protections Against Wrongful Dismissal
Greek law provides strong protections against wrongful dismissal. A termination can be deemed wrongful or invalid if:
- It is not communicated in writing.
- It is not registered with the ERGANI system within the legal deadline.
- The correct notice period is not observed, or the correct severance pay is not calculated and paid.
- It is found to be abusive (καταχρηστική απόλυση). An abusive dismissal is one that, while procedurally correct, is exercised in a manner that exceeds the limits imposed by good faith, morality, or the social and economic purpose of the right. Examples might include termination based on discriminatory grounds (e.g., pregnancy, union activity, religion) or termination immediately after an employee reports a workplace issue.
- In cases of summary dismissal for cause, the employer fails to prove the existence of "serious cause."
If a court finds a dismissal to be wrongful, the employer may be ordered to reinstate the employee and pay back wages, or, more commonly, pay significant additional compensation to the employee, potentially up to double the statutory severance amount, depending on the circumstances and the court's discretion. Employers must therefore ensure not only procedural compliance but also that the termination is not discriminatory or abusive.
