Employment Contracts in Greece

A Comprehensive Guide to Employment Contracts in Greece
Employment contracts in Greece must align with strict labor laws designed to protect employee rights. Whether hiring directly or through an Employer of Record in Greece, ensuring compliance with contract requirements is essential.
1. When Does the Employment Contract Start?
The employment relationship begins once the employee accepts the terms and conditions provided in the employment offer. While verbal agreements are legally valid, written contracts are strongly recommended, especially for long-term and part-time employment.
💡 Pro Tip: Drafting a clear written agreement helps avoid potential disputes and ensures legal clarity.

2. Key Components of a Greek Employment Contract
To comply with Greek labor regulations, an employment contract must include:
Job Title and Responsibilities: Clearly outline the role, duties, and expectations.
Work Location: Specify whether the role is office-based, remote, or hybrid.
Contract Type: Fixed-term, indefinite-term, or project-specific contracts are the most common.
Working Hours: Standard working hours are 40 hours per week, but flexible arrangements are allowed.
Compensation and Benefits: Include salary, allowances, and mandatory benefits such as social security contributions and severance pay.
Leave Policies:
Annual Leave: Employees are entitled to a minimum of 20 days of paid leave annually, increasing with tenure.
Sick Leave: Employees are entitled to sick leave, with payment depending on tenure and contribution history.
Maternity/Paternity Leave: Mothers are entitled to 17 weeks of maternity leave; fathers can take paternity leave as per labor laws.
Termination Terms: Clearly define notice periods and severance pay in case of dismissal.
💡 Why This Matters: Including these elements ensures compliance with Greek labor laws and protects your business.

3. Salary Structure in Greece
Compensation packages in Greece generally include:
Base Salary: Regular taxable income.
Bonuses: Mandatory Christmas, Easter, and vacation bonuses, equivalent to an extra two months’ salary annually.
Allowances: Transportation, meal, and other benefits based on role requirements.
💡 Key Takeaway: A detailed salary structure not only meets legal requirements but also helps in retaining talent.

4. Legal Considerations: Protecting Your Business
a. Non-Compete and Confidentiality Clauses
These clauses are enforceable in Greece if they are reasonable in scope and duration. Confidentiality agreements are vital for safeguarding business information.
b. Statutory Contributions
Employers must contribute to:
Social Insurance (EFKA): Covers health, pension, and unemployment benefits.
Supplementary Pension Funds: Mandatory contributions for employee welfare.
💡 Tip: Timely and accurate statutory contributions are essential to avoid fines and ensure compliance.

5. Background Checks and Employee Protections
Background checks are permissible in Greece but must comply with data privacy laws. Written consent is required for verifying criminal records, education qualifications, and employment history.

6. The Importance of Written Contracts
Written contracts formalize the employment relationship and ensure legal protection for both parties. They mitigate risks by clarifying roles, duties, and expectations.

7. Why Partner with GlobainePEO?
Expanding into Greece requires an in-depth understanding of local employment laws. By partnering with GlobainePEO, you can:
Simplify the hiring and contract process.
Ensure compliance with payroll, taxes, and social contributions.
Focus on business growth while we handle administrative complexities.

💡 GlobainePEO Advantage: As your trusted Employer of Record in Greece, we manage everything from drafting contracts to overseeing employee benefits and statutory compliance.

Drafting compliant employment contracts is the foundation of successful business expansion into Greece. Partnering with a Greece EOR, like GlobainePEO, allows you to focus on your core operations while ensuring legal and administrative requirements are met efficiently.