GREECE Law and Practice Contributed by: Nikolas Sigkridis, Semina Zavitsanou, Chrysa Kalantzi and Yannis Ragos, POTAMITISVEKRIS
work duties, Greek courts may limit or even waive employee liability – especially in cases of slight neg - ligence. Courts may apportion liability between the employee and employer, attributing to the employer the share of the loss that corresponds to normal busi - ness risk or that is disproportionate to the employee’s benefit from the employment relationship.
agreed upon. Greek law does not explicitly regulate post-employment non-compete clauses. However, Greek case law has developed specific cri - teria to assess the validity and enforceability of such clauses. If a legitimate business interest is established, courts then evaluate the clause based on transparen - cy and clarity regarding its scope and conditions. The main factors considered include the following. • Duration of the restriction: the restriction should be time-limited, typically up to 12 months, or in some exceptional cases up to 24 months. • Geographical scope: the clause should not be overly broad and should be reasonable in its ter- ritorial coverage – usually within the Greek territory. • The scope of activities and types/categories of enterprises considered competitive: the clause should specify which businesses and activities are restricted. • Financial compensation: a fair consideration must be provided by the employer, usually in connection with the duration of the restriction and the monthly remuneration paid during employment. This com - pensation may be paid after the restriction period ends, provided the employee complied with the clause. The agreement may also include a penalty clause in case of breach. 2.2 Non-Solicits Non-solicitation clauses are contractual provisions designed to prevent former employees from approach - ing or encouraging colleagues or clients to leave the company or transfer their business elsewhere. Their primary purpose is to protect the employer’s work - force stability and business relationships, following the termination of an employment relationship. These clauses are not explicitly regulated by Greek law. However, Greek case law has developed crite - ria for assessing their validity. In general, the same conditions that govern post-termination non-compete clauses also apply to non-solicitation clauses. Such clauses must be narrowly tailored and intended to protect the employer’s legitimate interest. The main factors examined by Greek courts include the follow - ing.
2. Restrictive Covenants 2.1 Non-Competes During the Course of Employment
An employer may not prohibit an employee from engaging in secondary employment outside their agreed working hours. Any contractual clause to the contrary is considered null and void, and therefore unenforceable, unless the restriction is objectively jus - tified. Such objective justifications may include: • health and safety concerns; • the protection of business confidentiality; As a result, although a general contractual ban on par - allel employment is not permitted, it is acceptable to include clauses requiring the employee to inform the employer before undertaking any additional employ - ment, especially where the employee has doubts as to whether objective grounds for restriction may apply. In any case: • working time limits and rest periods must be observed; and • the employee must not be subject to adverse treat - ment due to providing services to another employ - • employment with a competitor; or • the prevention of conflicts of interest. er outside their primary working hours. Post-Employment Non-Compete Clause During the employment relationship, the employer’s claim for the employee to refrain from engaging in competitive activity stems from the employee’s ancillary duty of loyalty. However, this duty does not survive the termination or expiry of the employment contract. Therefore, for the period following the end of the employment relationship, a corresponding obli - gation on the part of the employee must be expressly
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