CHANGES IN INDIVIDUAL LABOUR LAW as per provisions of L.5053/2023

October 3, 2023

On September 26th, 2023, Law 5053/2023 was ratified, which concerns a) the incorporation of Directive (EU) 2019/1152 of the European Parliament and of the Council of June 20th, 2019 on transparent and predictable working conditions in the European Union (L 186) and b ) the simplification of the procedures within the Information System “ERGANI II” of the Ministry of Labor and Social Security.

The main points of the law are summarized below:

TRIAL PERIOD OF SIX MONTHS

The employer may, upon entering into an employment contract of indefinite duration, agree with the employee a trial period of up to six (6) months, during which the contract or employment relationship is on trial.

If, during or at the end of the probationary period, the employer determines that the employee’s probationary service is successful and retains him in the business, the date of commencement of the contract shall be the employee’s original date of employment for all rights based on his employment; in the event that the employer considers that the trial service was not successful the contract under trial is automatically terminated and the working time is calculated for all rights produced up to the point of termination.

PARALLEL EMPLOYMENT

Parallel employment beyond eight hours to another employer is allowed, as long as the provisions on working and rest time are followed. The earnings and contributions of multiple employment increase the pensionable income.

CONTRACT BY ORDER

In the case of unpredictable working hours, a bespoke employment contract may be concluded. The contract stipulates the provision of work on predetermined days and hours. For the employment, the employee is notified 24 hours before the start of the employment, by SMS or email for the day and working hours.

In case of cancellation of employment by the employer before the commencement of work, the employee is entitled to compensation.

Paid working hours cannot fall short of ¼ of the agreed total number of hours.

It is prohibited to convert full-time or even part-time employment contracts into contracts by order.

POSTING OF BASIC TERMS OF WORK AND INDIVIDUAL CONTRACT AT ERGANI

Every employer, who hires an employee with a dependent labor relationship under private law, is obliged to post electronically in the I.S. ERGANI II, before commencement of work, the employee’s basic terms of employment and the written individual employment contract. The same applies in case of a change in the basic working conditions.

For the validity of the basic terms of employment and for the posting of the individual employment contract, it is required that these are co-signed by the employee by wet ink or with an approved electronic signature or with a digital certificate through the Unified Digital Portal (gov.gr) or with the acceptance of terms by the employee through the “MyErgani” information system that operates at I.S. ERGANI II of the Ministry of Labor and Social Security.

DECLARATION OF CHANGE OF HOURS AND OVERTIME IN THE i.S. ERGANI II

Employers, whose businesses have joined the electronic system of measuring working time using the digital work card for their employees with dependent work, may not declare in the I.S. ERGANI II the changes or modification of working hours or the organization of working time or overtime work before the start of their implementation.

If there is a change or modification of the working hours or the organization of the working time or overtime work by the employee and this is not identified by the marking of the digital work card, a fine of 10.500 euros is imposed on the employer per employee, whose digital card cannot indicate above identification.

MODIFICATION OF THE NOTIFICATION PROCEDURE OF NOTICE OF VOLUNTARY LEAVE

The employee’s unjustified absence from work for a period longer than five (5) consecutive working days can be considered as a termination of the contract on his part, as long as an additional period of five (5) consecutive working days has previously passed since his mandatory nuisance from his employer, which a) is posted in the Ι.S. ERGANI II and b) is proven in any suitable written way. In this case, the employer is obliged, on the next working day after the end of the period of the first paragraph, to announce the voluntary resignation of the employee to the I.S. ERGANI II, without requiring the employee’s signature.

If the employer does not comply with the obligations of notice of voluntary resignation within the deadline, the employment contract is considered to have been terminated by the employer’s irregular termination of employment.

EXCEPTIONAL EMPLOYMENT ON THE SIXTH DAY

1) In cases of businesses in continuous operation with a system of alternating shifts, in which the employees are employed in a five-day weekly schedule, their employment on the sixth (6th) day of the week may be allowed, as long as it is registered by the employer, in the Information System ERGANI II before the employee takes up duty.

The employment of employees, during the additional day, may not exceed eight (8) hours.

During this day, overwork and overtime work by the employee is not allowed. The employee is paid the sixth (6th) day’s wage, increased by forty percent (40%).

2) In cases of businesses, which by their nature are not in continuous operation, but can operate during the days Monday to Saturday, for twenty-four (24) hours, with a system of alternating shifts, and in which the employees are employed in a five-day weekly work, in exceptional cases, in which the company presents an unforeseeable particularly increased workload, the employment of employees is allowed on the sixth (6th) day of the week.

This special condition is notified by the employer to the Labor Inspectorate before the employee takes up service and is subject to control in accordance with the written provisions.

Employment on the sixth (6th) day of the week is registered by the employer, in the I.S. ERGANI II before the employee takes up service.

The employment of employees, during the additional day, may not exceed eight (8) hours.

During this day, overwork and overtime work by the employee is not allowed. The employee is paid the daily wage for that day, increased by forty percent (40%).

Those employed in hotel and catering businesses do not fall under the above provisions.

POSSIBILITY OF AN AGREEMENT ON THE ARRANGEMENT OF WORKING TIME

If there is no trade union or no agreement is reached between the trade union and the employer, the working time arrangement system can be applied, after a written agreement between the employer and the employee. In any case, it is prohibited to terminate the employment contract on the grounds that the employee did not agree to an arrangement of working hours.

PAY FOR PREVIOUS SERVICE TIME IN THE PRIVATE SECTOR

From 1.1.2024, the suspension of the validity of provisions of laws on the three-year previous service freeze is released.

For the application of the three-year thaw, the following apply:

  1. a) The length of service of each employee, who was hired before 14.2.2012, as this length of service was formed on 14.2.2012 when its completion was suspended, continues to be completed after 1.1.2024.
  2. b) The seniority of each employee, who was hired after 14.2.2012, starts to be completed after 1.1.2024.

Especially for the increase due to seniority for those employees who are paid the minimum statutory salary or daily wage, seniority is recognized as the time of a dependent contract or employment relationship, which has been spent with any employer and in any specialty before 14.2.2012 and after 1.1.2024. The above seniority increment is determined as follows:

  1. a) For employees with a dependent employment relationship, at a rate of ten percent (10%) for each three years of service and up to three (3) three years and a total of thirty percent (30%) for a service of nine (9) years or more.
  2. b) For daily wage workers, with a dependent employment relationship at a rate of five percent (5%) for each three years of service and up to six (6) three years and a total of thirty percent (30%) for a service of eighteen (18) years or more.

If the paid regular wages are higher than the legal wages, the increases, increments and the amounts in general resulting from the application of the above, are set off against the difference that arises between the paid and legal wages, with the payment of which they are paid in full or in part.

For the period from 14.2.2012 to 31.12.2023, no claim arises, nor are salary or daily wage increases due, including those related to seniority, with the sole condition that a specific working time has passed, as mentioned above, nor is it allowed to calculate length of service from 14.2.2012 to 31.12.2023.

From 1.1.2027, if the rate of unemployment exceeds ten percent (10%), and until it reaches a rate below ten percent (10%), the validity of the provisions referred to in par. 1 will automatically be suspended. For the application of the first paragraph, the average of the national unemployment rate of the last four quarters, as reflected in the Labor Force Survey of the Hellenic Statistical Authority, is taken into account.

DISCLAIMER: The abovementioned text is a summarized report that does not include important details, not possible to mention here. Our firm remains at your disposal and is ready to assist you in regard to detailed information and application of the new law provisions.