GREECE Law and Practice Contributed by: Nikolas Sigkridis, Semina Zavitsanou, Chrysa Kalantzi and Yannis Ragos, POTAMITISVEKRIS
mobile phone and insurance coverage, etc) are includ - ed if they are granted regularly and without any dis - claimer by the employer about their voluntary nature. However, the monthly salary used for the calculation is capped at the equivalent of eight times the daily wage of an unskilled worker (currently EUR39.30), multiplied by 30 days (currently EUR9,432). Based on the above, the statutory severance pay - ments are calculated as follows (years rounded up and all monthly salaries annualised), for years of service and the applicable severance payment as follows. • One year to four years: two months’ salary. • Four years to six years: three months’ salary. • Six years to eight years: four months’ salary. • Eight years to ten years: five months’ salary. • Ten years: six months’ salary. • 11 years: seven months’ salary. • 12 years: eight months’ salary. • 13 years: nine months’ salary. • 14 years: ten months’ salary. • 15 years: 11 months’ salary. • 16 years or more: 12 months’ salary. Employees who on 12 November 2012 had completed 17 or more years of service with the same employer are entitled to an additional severance payment. This is calculated as one (annualised) monthly salary for each completed year of service on that date, up to a maximum of 12 months. For the purpose of this additional severance, the monthly salary is capped
The notice period that the employee must give when resigning is half the length of the notice period required from the employer, as outlined above. Garden Leave Upon giving notice of termination, the employer may unilaterally release the employee from the obligation to perform work, either fully or partially, for the dura - tion of the notice period (garden leave). In such case, the employer remains obliged to pay the employee’s full salary until the expiry of the notice period, with - out being considered in default for not utilising the employee’s services during that time. Furthermore, the law expressly permits the employee to engage in employment with another employer during this period. This does not affect the validity of the termination nor the employee’s entitlement to statutory severance pay. 7.3 Dismissal for (Serious) Cause In Greece, the employer is not required to indicate the reasons justifying the dismissal. Of course, in the case of litigation a reason has to be presented before the court (see 8.1 Wrongful Dismissal ). If a serious cause is required for the termination (eg, termination of a fixed-term agreement, if the invo - cation of serious cause is mutually agreed or in the case of protected categories of employees), it can be personal (eg, the employee’s poor performance or negligence, breach of contractual obligation, erosion of confidence towards the employee) or economic/ technical (eg, restructuring/downsizing due to eco - nomic reasons). 7.4 Termination Agreements The employer may agree with the employee on the mutual termination of the employment agreement, including the employee’s waiver of any right to chal - lenge the validity of the termination, and settlement of any claim of any kind arising from the employment agreement. In practice, the successful termination agreement requires the payment of enhanced sever - ance payment. Although this option may seem more costly, this is by far the safest, easiest and fastest way (and in the end possibly the least costly), considering the elimination of the litigation risk for an employer having to drastically reduce its workforce.
at EUR2,000. Notice Period
The length of the notice period depends on the employee’s service, for years of service at the same company and the applicable notice period as follows.
• One (completed) to two: one month. • Two (completed) to five: two months. • Five (completed) to ten: three months. • Ten (completed) and more: four months.
The employer is not obliged to observe the notice period. However, if the employer opts for termina - tion with prior notice, the statutory severance pay is reduced by 50%.
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