Requirement for Foreign Employees to Work
Foreign nationals who are not citizens of the European Union, the EEA or Switzerland must hold a valid residence permit granting access to the labour market in order to be lawfully employed in Greece. EU/EEA and Swiss nationals may work freely in Greece but are subject to registration formalities with local authorities if their stay exceeds three months.
Does a Foreign Employer need to Establish or Work through a Local Entity to Hire an Employee?
As a rule, an employment relationship governed by Greek law requires the employer to have a legal presence in Greece, typically in the form of a subsidiary, branch or other registered establishment, in order to meet payroll, tax, social security and labour law obligations. Direct hiring by a foreign employer without a Greek entity, although not prohibited, could raise employment, tax and social security implications.
Limitations on Background Checks
There are no specific statutory employment regulations on the legitimacy of background checks carried out by employers. However, such checks are subject to limitations arising primarily from data protection law, as well as general principles of labour law and the protection of personality rights.
In particular, under the Greek data protection legislation, which is in line with the GDPR, employers may only collect and further process personal data that is adequate, relevant and strictly necessary for the purposes of assessing a candidate’s suitability for a specific role. This reflects the core principles of data minimisation, purpose limitation and proportionality, which are central to the legality of any background check. As a result, background screening must be directly connected to the requirements of the position in question. Excessive or intrusive inquiries, particularly into aspects of an individual’s private life, are not permitted. The employer must also ensure transparency, meaning that candidates must be properly informed about the nature, scope and purpose of the data processing, as well as their rights under data protection law.
With regard to criminal record checks, Greek law adopts a particularly restrictive approach. Collection of criminal records is only permitted where expressly required by law. In the absence of such legal requirement, the processing of personal data related to criminal convictions may only be justified by the nature of the role, for example in positions involving a high degree of trust, financial responsibility etc. In such cases, the employer may request a solemn declaration by the employee confirming that they have not been convicted for a specific offence. In any case, the processing must remain proportionate and subject to heightened safeguards, including strict confidentiality.
Restrictions on Application/Interview Questions
Under Greek law, significant restrictions arise during the application/interview process from anti-discrimination legislation and the protection of personality rights, which apply fully at the pre-employment stage.
In particular, Law 4443/2016, implementing EU equality directives, prohibits both direct and indirect discrimination in access to employment. As a result, employers are not permitted to ask questions that relate to protected characteristics, unless such information is objectively justified by a genuine and determining occupational requirement, which is interpreted narrowly. Accordingly, questions concerning matters such as pregnancy or family planning, health status or disability, religious beliefs, political opinions, trade union membership, sexual orientation or ethnic origin are, in principle, prohibited, as they are not considered relevant to the candidate’s professional suitability and may give rise to discriminatory treatment.
Interview questions must be strictly job-related and proportionate, focusing exclusively on the candidate’s qualifications, skills, experience and ability to perform the duties of the role. Any inquiry extending into the candidate’s private life or unrelated personal circumstances may be considered unlawful. In addition, such questions may also infringe data protection rules under the GDPR, particularly where they involve the processing of sensitive personal data, which is subject to heightened protection and generally prohibited unless specific legal conditions are met.