Greek Labour Law http://www.lawyers-greece.co.uk/termination-of-employment-contracts-in-greece.

html Termination of employment contracts in Greece

Termination of employment contracts in Greece is governed by Articles 669 et seq. Greek Civil Code. Employment contracts can be concluded for both limited and unlimited periods. i!ed "limited# contracts of employment by rights end upon e!piry of the period for $hich they $ere entered into "Art. 669 Greek Civil Code#. %hould the employee continue to offer his services after his period of service has e!pired& ho$ever& and the employer accepts these& this is regarded as a tacit e!tension of the employment contract. The employment contract is consequently regarded as being e!tended for an unspecified period. Either party can terminate a contract of employment for an unlimited term. 'ursuant to Article ( of )a$ *. +,,+-+.& any unilateral amendment of the employment conditions to the employee/s detriment is deemed termination of the employment contract by the employer. This covers the cases of posting of the employee abroad despite it being against his $ishes& for e!ample& demotion to a lesser position and salary cuts.

Employment contracts for an unlimited term can be terminated as follows:

a. b. c. d. As a result of termination by the employee& Art. 669 0+ and 6(.& 6(+ Greek Civil Code& As a result of the employee/s death or& in e!ceptional cases& the death of the employer& Art. 6(1 Greek Civil Code& 2y the employer/s and the employee/s mutual consent in the cases of 0,& Art. 3 of la$ 4,93-,911& i.e. after completion of ,1 years/ service& not$ithstanding $hich the 5n cases in $hich the employee acquires his employer/s business.

6nder certain circumstances the employee/s inability to render service& $hich cannot be ascribed to illness& accident& military service or pregnancy& can be taken as tacit termination of the employment contract by the employee. 5n such cases termination is not automatically present& ho$ever& it must be verified and construed by the court as the case arises. 5f the employer is not in a position to accept the employee/s services as a result of obstacles "e.g. due to force ma7eure#& he is not obliged to pay the remuneration. This does not& ho$ever& by rights lead to termination of the employment contract. 5n this case too termination of the employment contract is required. The employee is& ho$ever& due t$o thirds of the statutory compensation "Article 6& 0+ paragraph + of la$ *. +,,+-+.# in cases of force ma7eure. 5n the event of insolvency the employer is obliged to pay the full statutory compensation "Article 6 0+ of la$ *. +,,+-+. and Article 9 0+ of royal decree ,6-,3.(.+.#.

Employment contracts for a limited term can be terminated as follows:

a. b. i!ed employment contracts by rights cease $hen they e!pire "Article 669& 0, Greek Civil Code#. %hould the employee continue to provide his services after the period has e!pired& ho$ever& $ith the employer/s kno$ledge and the latter does not ob7ect& the employment contract is deemed to be e!tended for an unspecified term "Article 6(, Greek Civil Code#. Either party can terminate the employment contract at any time for good cause $ithout observing a period of notice. Contractual preclusion of this termination option is ineffective "Article 6(+ Greek Civil Code#. 2reach of contract can constitute good cause. 5n this case that party liable for the breach of contract is obliged to provide indemnification "Article 6(4 Greek Civil Code#. 5n the event of a change in the personal circumstances or the assets of the employer& the court can a$ard the employee appropriate compensation at its discretion "Article 6(8 Greek Civil Code#. 9ther e!amples of good cause:

o o o o
c. d. e.

o The employee/s opposition to and failure to carry out the employer/s instructions and the employee/s lack of professional suitability-qualifications& o The employee/s absence due to illness over years if this leads to problems in the business& o ;iolation of particular contractual provisions& if these provisions e!pressly stipulated that in the event of violation the other party $ould be due a right of termination& but $ithout the obligation to pay compensation& o 5n the event of intentional insult by the employer.

5n individual cases the employer can terminate the fi!ed employment contract $ithout reason too. 5n such cases the employer is& ho$ever& obliged to pay the employee all $ages up to e!piry of the originally agreed employment contract. The employee/s death or e!ceptionally that of the employer& leads to termination of the fi!ed employment contract "Art. 6(1 A.<.#. Cases in $hich the employee acquires the employer/s business lead to termination of the fi!ed employment contract too.

Compensation for loss of ob !employee"

According to Greek la$& in the case of due and proper termination of unlimited employment contracts by the employer& compensation is only to be paid from a minimum employment term of t$o months. Termination must be effected in $riting and must be notified to the employment

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organisation "9.A.E.=. in Greek# having 7urisdiction "Article ,& 0, of la$ +,,+-+.& as amended by Article , of la$ 8113-4.#. 5n this case the employee $ho has been dismissed $ill receive compensation for holiday $hich has not been taken. The tiered compensation& based on the monthly salary& according to length of service& for ordinary termination by the employer "Article , of la$ +,,+-+.& amended by Article , of la$ 8113-4.# can be seen from the follo$ing table:

Length of ser#ice

$eriod of notice or compensation

Length of ser#ice

$eriod of notice or compensation

+ months to , year

, month or , month/s income

,( years

,4 months or ,4 months/ income

, year to 8 years

+ months or + months/ income

,3 years

,8 months or ,8 months/ income

8 years to 6 years

4 months or 4 months/ income

,9 years

,1 months or ,1 months/ income

6 years to 3 years

8 months or 8 months/ income

+. years

,6 months or ,6 months/ income

3 years to ,. years

1 months or 1 months/ income

+, years

,( months or ,( months/ income

,. years

6 months or 6 months/ income

++ years

,3 months or ,3 months/ income

,, years

( months or ( months/

+4 years

,9 months or ,9 months/

,+ years

3 months or 3 months/ income

+8 years

+. months or +. months/ income

,4 years

9 months or 9 months/ income

+1 years

+, months or +, months/ income

,8 years

,. months or ,. months/ income

+6 years

++ months or ++ months/ income

,1 years

,, months or ,, months/ income

+( years

+4 months or +4 months/ income

,6 years

,+ months or ,+ months/ income

+3 years and above

+8 months or +8 months/ income

5n cases $here an employer terminates an employment contract $ithout observing a period of notice& the compensation is geared to the length of service. 5n the event of termination $hich complies $ith a period of notice& the employee $hose post has been terminated is due half the respective compensation above. %&.: or effective termination the employer must also offer the employee the respective compensation& mentioning the period of notice. 5f the employee absents himself from $ork during the notice period& the employee shall be deemed to have terminated the employment contract. 5n this case he is not entitled to compensation. 5f& ho$ever& the employer releases the employee for the notice period& the compensation must be paid as normal. The period of notice is not offset against the length of service $hen calculating the compensation..

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Employees $ho have several employment contracts at the same time are due a separate claim to compensation for each employment contract in the event of ordinary termination.

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