GREECE Law and Practice Contributed by: Anastasia Dritsa, Elisabeth Eleftheriades, Vicky Kriketou, Irene Kyriakides, Ioanna Kyriazi, Victoria Mertikopoulou, Claire Pavlou and Panagiotis Pothos, Kyriakides Georgopoulos Law Firm
tions to the Ministry of Labour. Failure to follow the prescribed procedure renders the dismissals null and void. The general rules on valid termination and severance continue to apply. 4.5 Employee Representations The establishment of employee representative bodies and participation therein is not generally mandatory and is exercised where the relevant legal requirements are met. Employee representation is primarily exer - cised through trade unions and works councils. Trade Unions Union membership is a fundamental right under the Greek Constitution, ensuring employees’ freedom to organise and advocate collectively. Any adverse treat - ment, including dismissal, due to union involvement is prohibited. Trade unions are structured at three levels: • first-level unions (sectoral, occupational or compa - ny-level unions; local branches; and associations of persons); • second-level organisations (federations and labour centres); and • third-level confederations of federations and labour centres. The establishment of a trade union requires at least 20 employees. Founding members apply for recog - nition to court, upon which the union acquires legal personality. Trade unions aim to preserve and promote employ - ees’ labour, financial, insurance, social and collective interests. Their main rights include collective bargain - ing and the right to strike, as well as information and consultation rights in cases of collective dismissals, transfer of undertakings, restructuring, the introduc - tion of new technologies, etc. Works Councils Works councils may be formed in enterprises employ - ing at least 50 employees, or more than 20 employ - ees, where no trade union exists. They are elected by
employees and consist of three, five, or seven mem - bers, depending on the size of the workforce. Their primary function is advisory, with information and consultation rights regarding matters affecting employees, including health and safety, introduction of new technologies, collective redundancies, trans - fers of undertakings and restructuring measures (in the absence of a trade union). European Works Councils For multinational enterprises, European Works Coun - cils are established for the protection of employees’ rights in a broader, multinational form. Employees from all countries in which the enterprise is engaged participate in an EWC. A taxpayer may be subject to taxation either based on their tax residence or because they derive income from a Greek source. Accordingly, any person who is considered a tax resident of Greece is subject to tax on their taxable income arising both in Greece and abroad earned during a specific tax year, whereas a taxpayer who is not a tax resident of Greece is subject to tax only on taxable income arising in Greece and earned during the relevant tax year. However, domes - tic law provisions apply subject to any double taxation treaty. With respect to taxes imposed in the context of an employment relationship, employees are subject to progressive income tax brackets, while employers are liable for withholding such (payroll) tax and social security contributions calculated on the employee’s income. 5. Tax Law 5.1 Taxes Applicable to Employees/ Employers The following tax rates apply to the employee’s income, from 1 January 2026 onwards, subject to applicable reductions: • From EUR0 to EUR10,000, the tax rate is 9%. • From EUR10,000.01 to EUR20,000, the tax rate is 20%.
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