New Guidelines For Employment Contracts

03 April, 2020

On the 31st of March 2020, the Greek Ministers of Labour and Finance have issued new guidelines regarding the implementation of support measures to businesses that have been impacted by the coronavirus outbreak.

More specifically the newly issued Ministerial Decision determines the following:

1. Suspension of Employment Contracts

Employers of affected businesses may suspend employment contracts of all or part of their employees for an uninterrupted period of 45 days. Employers that use the above option, may also benefit from other supporting measures issued by the Greek Government, such as move employees within a group of companies. The main objective of the Decision, is to retain a balance between employers’ and employees’ interests and the safeguard the job positions.

2. Prohibition of Lay off

Businesses that have been locked down by order of the authorities, are prohibited to lay off any of their layoff’s employees. If the Employer, despite the prohibition, proceeds to the dismissal, the latter is deemed as invalid.

3. Obligation to maintain job positions

Employers that will suspend employment contracts, are also obliged to maintain the employees and their job positions, with the same working terms and conditions for a time period after the expiration of the employment contract suspension, equivalent to that time period, meaning for 45 days. Those who voluntarily resign, retire or those who have a fixed-time employment contract expiring after their contract’s suspension, are exempted.

4. Reduction of Insurance Contributions and Debts

For Businesses and persons, severely affected by the spread of coronavirus, the State has decided to grant a 25% reduction of their debts by official decree and insurance contributions, upon the precondition that they will proceed to the payment within the deadline, starting from 30.3.2020 until 30.4.2020.