Greece Employment Guide

Navigating Employment Termination in Greece: A Practical Guide

Terminating employment relationships in Greece requires careful adherence to complex regulatory frameworks and country-specific requirements. The dismissal process must be managed collaboratively between employers and key stakeholders, often involving specialized procedures and potential financial obligations depending on the termination circumstances.

Legal Grounds for Employment Termination

Greek employment law distinguishes between indefinite and fixed-term contracts, each with distinct termination protocols. All termination notifications must be submitted to relevant authorities within four business days (Monday through Friday).

Indefinite Duration Contracts

• Voluntary resignation by employee
• Mutual agreement (primarily for retirement scenarios)
• Employer-initiated termination based on:
  • Probationary period assessment
  • Objective business reasons
  • Disciplinary dismissal (exceeding seven days of unauthorized absence or misconduct)
  • No-fault termination with proper notice

Fixed-Term Contracts

• Employer-initiated termination due to:
  • Objective business circumstances
  • Probationary period evaluation
  • Disciplinary grounds
• Natural contract expiration

Critical timing requirement: Employment terminations and resignations must legally occur on Fridays, excluding weekends, public holidays, or other weekdays.

Notice Period Requirements

Notice periods vary significantly based on contract type, employment duration, salary level, and termination rationale.

Severance Compensation Framework

Employees completing at least one year of service are entitled to severance payments upon dismissal. Compensation levels depend on whether the termination included proper warning periods and the justification for dismissal.

Termination without prior warning requires minimum compensation equivalent to two months' salary, potentially increasing to twelve months' salary after sixteen years of service.

Termination with proper warning mandates at least one month's salary as severance, escalating to six months' salary after sixteen years of employment.

Greek compensation calculations incorporate statutory bonuses: monthly severance equals total monthly salary divided by 12, multiplied by 14.

Mitigating Termination Risks with SailGlobal

SailGlobal's employment agreements incorporate proactive severance accrual mechanisms to protect international businesses from unexpected financial liabilities. Our global expertise in litigation risk management ensures compliance with local statutory requirements and best practices. When employees resign or aren't entitled to severance, unused accruals are fully returned to clients.

Recent case studies demonstrate how SailGlobal's approach prevented six-figure liabilities for technology companies undergoing restructuring in Athens, highlighting the importance of proper severance planning in Greek employment operations.