Hiring guide in Greece

What should I know about hiring in Greece?

Several considerations must be made while hiring in Greece. First, the nation adheres to a stringent set of regulations concerning the selection of new employees. 

This means that you should take your time learning the guidelines before beginning your search for the ideal applicant. In addition, before posting an ad for a remote position, it’s wise to ensure that the salary and benefits package you’re offering is competitive.

An employment agreement must not be reduced to writing for it to be legally binding. However, terms of employment must be communicated to workers in writing. Under the Labor Code, employees have a right to know about their compensation, schedule, and other benefits.

Why is Greece a good choice for finding remote employees?

Greece is an excellent location from which to source remote workers for a number of reasons. First, Greece is a great place to recruit remote workers, partly because of the country’s relatively low cost of living. 

This makes it a desirable choice for businesses trying to cut costs elsewhere. In addition, the government of Greece provides financial incentives to companies that invest and expand in Greece, increasing employment opportunities for Greek citizens.

Greece also has a well-developed network infrastructure, which facilitates communication with distant workers. Finally, hiring Greek remote workers offers significant value because of their high level of technical education and English ability.

How can Native Teams help you hire in Greece?

In order to begin hiring Greek remote workers, you will need either a Greek legal organisation or the services of a global recruitment solutions provider. Through our Employer of Record services, Native Teams can assist you in hiring and onboarding your new team members, as well as managing their payroll, taxes, benefits, and overall compliance with Greek law.

Hire your first Greek employee with Native Teams.

Legal requirements for hiring in Greece

To ensure a fully compliant hiring process in Greece, employers need to comply with several legal requirements. 

Legal framework

Types of employment contracts

There are two types of employment contracts: indefinite and fixed-term. Indefinite contracts are the most common ones and occur when a contract lacks a specified duration. They imply ongoing employment until either party decides to terminate the agreement.

Fixed-term contracts are less common and must have a predetermined end date justified by specific reasons, such as temporary work requirements or covering for an absent employee.

Content of an employment contract

The employment contract must include essential details to ensure clarity and compliance with legal standards. It begins by identifying the particulars of the contracting parties and providing clear information about both the employer and the employee. This includes specifying the location where the work will be carried out, which can either be the registered office of the company or the employer’s home address.

Moreover, the contract outlines the employee’s role or specialisation within the organisation. It should also include details, like conditions for paid leave, compensation, notice periods, and working hours.

 Download a free employment contract for Greece through Native Teams.

Oral, written or electronic employment contracts

A written employment contract isn’t always required, except for part-time positions, temporary contracts, and renewals of fixed-term contracts.

Probationary period

During the probationary period specified in an indefinite-term contract in Greece, which lasts for the first 12 months of employment, the employer has the right to end the employment without giving prior notice or providing compensation.

Working hours

Full-time employment involves working hours that do not exceed 40 hours per week. On the other hand, part-time employment refers to working hours that are fewer than those of full-time employment. If a part-time arrangement is not documented in writing or reported to the relevant Labour Inspectorate within eight days of its establishment, the employee is presumed to be engaged in full-time employment.

Night work

According to Greek law, night work generally covers shifts between 10:00 PM and 6:00 AM the next day. Employers scheduling night shifts must comply with specific legal obligations aimed at protecting the health and safety of their employees.

Breaks and types of leaves

During the workday, employees are entitled to breaks that aren’t considered working time or paid, ranging from 15 to 30 minutes for work exceeding 4 hours. There are also daily rest periods, which must be at least 11 consecutive hours within each 24-hour period. The weekly rest includes a minimum 24-hour break each week, typically taken on Sundays.

Annual leave entitlements are determined by law, with employees generally entitled to at least 20 working days off per year for those working 5 days per week or 24 working days for those working 6 days per week.

Public holidays

In Greece, the public holidays observed include New Year’s Day, Epiphany, Clean Monday, Greek Independence Day, Orthodox Good Friday, May Day, Orthodox Easter Sunday, Orthodox Pentecost, Whit Monday, Assumption Day, National Day, Christmas Day, and Synaxis of the Mother of God.

Salary

The minimum monthly wage for employees aged 25 and older without specialised skills is established and regularly revised through ministerial decrees. Currently, the minimum wage in Greece stands at €37.07 per day and €830.00 per month.

To calculate the salary and taxes in Greece, click here.

Sick leave

The duration of sick leave entitlement depends on the employee’s length of service. For those with up to 4 years of service, sick leave can be granted for up to 1 month. Employees with more than 4 years but less than 10 years of service may receive sick leave for up to 3 months. 

Those with over 10 years but less than 15 years of service are eligible for sick leave for up to 4 months, while employees with 15 years of service or more can be granted sick leave for up to 6 months.

Parental leave

Childcare leave in Greece allows each parent, for a period of 30 months after maternity or maternity protection leave, to choose either to start work an hour later or finish an hour earlier each day or to take a one-hour break during their work hours.

Employees might have a reduced work schedule of 2 hours per day for the first twelve months, followed by 1 hour per day for the next 6 months. Another option is taking a full day’s leave equivalent to the total hours of reduction that would apply for childcare during the same period.

Paternity and maternity leave

Maternity leave for female employees in Greece lasts 17 weeks and is divided into two parts: eight weeks before the baby’s birth and nine weeks after.

Moreover, mothers covered by the e-National Social Security Fund (e-EFKA) are entitled to maternity protection leave following the standard maternity leave. This protection can extend for up to nine months and applies to mothers who undergo surrogacy or adopt a child until the child turns eight and is fully integrated into the family.

Paternity leave is granted to male employees following the birth or adoption of a child. It allows for a total of two weeks off, which can be taken within six months from the date of childbirth or adoption.

Methods of employment termination

Employees have the right to resign from their positions, but they must provide advance notice as stipulated by law. Employers must, on the other hand, issue a written decision when terminating an employment contract, ensuring clarity and formal notification to the employee.

Alternatively, termination can be achieved through a mutual termination agreement, where both the employer and the employee agree to end the employment relationship based on mutual consent.

Ordinary dismissal by employer

To terminate the contract, the employer must give the employee written notice and a severance payment. During the initial 12 months of an indefinite employment contract, known as the probationary period, the employer can terminate the contract without prior warning or compensation.

Notice period and challenging the dismissal

In the initial 12 months of indefinite employment contracts, referred to as the probationary period, termination can happen without advance notice.

Employers have the choice, but not the requirement, to give written notice when terminating indefinite contracts. Choosing this option involves paying half of the statutory severance pay that would be required for terminations made without notice.

Employees also have the right to contest the fairness of their dismissal if they believe the employer’s actions were unjust.

Rights and obligations of unemployed individuals

To qualify for unemployment benefits, an individual must fulfil specific criteria related to their employment history and contributions. They must have worked a minimum of 125 days in the 14 months leading up to the termination of their employment, excluding the last 2 months before termination. 

Alternatively, they must have worked for at least 200 days within the 2 years preceding termination, again excluding the final 2 months.

In terms of contributions, first-time applicants are required to have paid contributions equivalent to 80 insurance days for each year during the two years before applying for benefits.

Severance pay

Severance payment is a mandatory part of terminating employment. The amount of severance payment varies depending on whether the termination is initiated by the employer with or without prior notice.

Prohibition of competition

Under Greek law, the enforceability of non-compete clauses in employment contracts depends on meeting specific conditions. Firstly, there must be a demonstrated legitimate business interest justifying the necessity of such a restriction, typically aimed at protecting proprietary information. 

The scope of the non-compete clause must be reasonable concerning the nature of the employer’s business, the employee’s role, and the geographic area covered. Moreover, to ensure fairness, employees must receive consideration, whether through additional compensation or other benefits, in exchange for agreeing to the non-compete clause.

Remote working policy

The terms and conditions of remote work are typically negotiated and agreed upon between the employer and the employee. However, exceptional circumstances may warrant specific categories of employees requesting remote work. 

These circumstances include individuals with serious health conditions, parents of young children (usually under the age of 12), and caregivers responsible for dependent family members.

Responsibilities within a remote work arrangement

The employer is responsible for covering all costs associated with remote work, which include providing equipment, ensuring internet access, and covering communication expenses.

The employer must provide the employee with detailed written terms within 8 days of starting remote work. These terms outline various aspects of remote work, such as the “right to disconnect,” additional costs, necessary equipment, usage guidelines, availability requirements, health and safety measures, and confidentiality obligations.

Health and safety at home

Employers are required to conduct risk assessments of home workplaces to identify potential hazards and implement measures to mitigate them. This involves evaluating factors such as ergonomic setup, lighting, electrical safety, and fire safety. They also need to provide the proper equipment for work.

Intellectual property rights

In Greece, the general rule regarding the initial ownership of these intellectual property rights is that the creator of the work is considered the initial owner. For copyrights, both economic rights (such as reproduction and distribution rights) and moral rights (such as the right to attribution and integrity) belong to the author by default.

However, when intellectual property rights are created within the scope of employment, specific rules may apply. For instance, if an employee creates a copyrighted work as part of their employment duties, the employer may be considered the initial owner of the economic rights associated with that work.

Employee data privacy

The employer is responsible for determining the purposes and methods of processing the employees’ personal data. Employee consent plays a crucial role in data processing activities, with employees required to provide explicit consent unless data processing is mandated by legal obligations.

What are the advantages of hiring employees from Greece vs other countries?

Hiring employees from Greece can offer several distinct advantages. Greece’s strategic location within Europe can provide logistical advantages for companies operating in the region, potentially reducing transportation costs and improving supply chain efficiency.

In addition, Greece has a rich cultural and historical heritage that fosters creativity and innovation. Greek employees may bring fresh perspectives and innovative ideas to the table, improving problem-solving. 

The country is also known for its tradition of entrepreneurship, with many individuals possessing an entrepreneurial mindset and willingness to take initiative. This can contribute to a proactive and forward-thinking workplace culture.

Why use Native Teams for hiring in Greece?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.