Introduction
Greek employment law is divided into two broad areas: individual employment law and collective employment law. Individual employment law governs the relationship between the individual employee and the employer, while collective employment law regulates the collective representation and organisation of employees, the rights and obligations of trade unions and works councils, and the conclusion of collective labour agreements. It is, in principle, consolidated into a single labour code (Presidential Decree 62/2025), reflecting a traditionally protective approach towards employees. It establishes mandatory minimum standards on matters such as working time, annual leave, remuneration, health and safety, and protection against dismissal, which generally cannot be waived to the detriment of the employee. Employers are subject to v administrative and reporting obligations, notably through mandatory electronic systems for workforce declarations and changes in employment status. At the same time, there is growing emphasis on compliance with non-discrimination, equal treatment and work-life balance, alongside heightened scrutiny by labour authorities.
Key Points
- Indefinite term contracts may be terminated by the employer upon service of a written termination letter and payment of the statutory minimum severance indemnity;
- The parties may agree to a probation period of up to 6 months (for indefinite-term employment contracts) or ¼ of the total duration of the contract (for fixed-term employment contracts);
- During the first 12 months of employment, no severance indemnity or prior notice is due upon termination;
- Employees are entitled to 14 salaries per year, paid in 15 instalments (12 monthly salaries plus Christmas, Easter and leave allowances);
- Working time, overtime and rest periods are strictly regulated, with enhanced pay for overwork, overtime and work performed on the sixth day of the week, Sundays, public holidays or at night;
- Termination of employment is a very formalistic process and requires written notification of the employee and payment of statutory severance, with additional protections applying to specific categories of employees and in cases of collective redundancies;
- Greece operates a state social security system. The primary scheme, known as e-EFKA is mandatory for all Greek nationals and residents.
Legal Framework
The Greek employment law framework comprises a multi-layered system of sources, combining statutory regulation, collective labour arrangements and individual contractual agreements, all operating within the boundaries set by the Constitution and European Union law.
The key employment legislation in Greece is Presidential Decree No. 62/2025, which codifies a wide range of employment-related provisions governing both individual and collective labour relationships. It consolidates rules on fundamental aspects such as working time, annual leave, special forms of leave, workplace equality and non-discrimination, termination of employment and collective labour relations.
In addition to legislation, collective labour agreements (CLAs) constitute a fundamental source of labour regulation. Concluded between trade unions and employers or employers’ associations at enterprise, sectoral or occupational level, they have normative effect and establish minimum binding terms and conditions of employment.
At the individual level, employment contracts regulate the specific employment relationship between employer and employee. These contracts operate within the hierarchy of sources and must comply with statutory provisions and any applicable collective labour agreements, while allowing for more favourable terms to be granted to the employee.
New Developments
Recent developments in the Greek employment law landscape reflect significant legislative reform, increasing digital compliance, evolving labour-market practices and noteworthy case law developments. The key legislative milestone in this regard is Law 5239/2025 (“Fair Work for All”), published in October 2025, which introduces a modernised, consolidated labour law regime aimed at simplifying legal requirements, reducing administrative burdens and enhancing worker protections. This law abolishes certain formalities such as the mandatory electronic submission of contracts to labour authorities, streamlines hiring procedures and incorporates greater flexibility in working time arrangements, including provisions addressing overtime, annual leave and flexible working hours, while strengthening protections on health and safety and fundamental employment rights. In early 2026, Law 5278/2026 introduced systemic changes designed to strengthen the role and coverage of collective labour agreements, with the aim of fostering more widespread collective negotiation frameworks, thereby affecting labour relations and industrial relations strategies for employers. On the case law front, recent judicial discourse increasingly engages with modern employment issues, including the requirements for the validity of post-termination non-compete agreements and the boundaries of dependent work in emerging work models.
