Reducing Bureaucracy and Strengthening Employee Protection
On October 17, 2025, Greece enacted Law 5239/2025, a comprehensive reform of its labour legislation designed to modernize the employment landscape while enhancing worker protections. This landmark legislation represents a significant shift toward digital transformation and administrative simplification in Greek employment law.
Labor Law Reforms and Bureaucracy Reduction
The scope of Part A of the said law, encompasses modifications to the Code of Labour Law concerning employee protection, along with additional provisions designed to minimize bureaucratic requirements and strengthen employee rights. These reforms touch virtually every aspect of the employment relationship, from contract formation to termination.
Combating Violence and Harassment in the Workplace
Article 62 of the Code of Labor Law has been amended with new provisions requiring every employer to establish policies within their enterprise for the prevention and combating of violence and harassment, as well as for managing internal complaints. These policies must include mechanisms for reporting and investigating incidents, creating a safer and more respectful work environment for all employees.
Unpredictable Working Hours and Flexible Arrangements
For situations where work schedules are largely unpredictable, employers are now obligated to inform employees about their hours and days of work within a reasonable timeframe. The law establishes minimum notice periods and rules for changing work schedules. Significantly, the minimum guaranteed number of working hours (which could not be less than one-quarter of the agreed working time) has been abolished, as has the prohibition on unilateral conversion of part-time employment contracts to on-call work arrangements.
Employee Information Requirements and abolition of hard copy record keeping
Information concerning employment terms must be provided in writing, either in printed or electronic format, ensuring employees can access, save, and print such information. Importantly, providing this information through the electronic application “myErgani” satisfies the written notification requirement, streamlining administrative processes while ensuring transparency.
The obligation to maintain documents at the workplace has been abolished, including: the requirement to post personnel rosters and working hours, the obligation to display the leave register, the requirement to present individual employment contracts, and the obligation to display payroll statements for the last three months.
Moreover, as from 2026, employers are no longer required to submit the E4 form (annual personnel table) and the E11 form (annual leave table).
Part-Time and Rotational Work
The law comprehensively regulates part-time and rotational work arrangements, including notification procedures through the ERGANI II Information System, written agreement requirements, and employer obligations. The requirement to notify authorities upon conclusion of employment contracts has been abolished, reducing unnecessary bureaucracy.
Overtime Work Regulations
The law provides four hours of legal overtime, with specific exceptions. While an employee’s refusal to work overtime does not constitute grounds for dismissal, such refusal must not contravene the principle of good faith.
Annual Leave Management
The granting and taking of annual leave must be recorded in the ERGANI II System. Leave must be registered during the month it is granted, enabling better tracking and ensuring employees receive their entitled rest periods.
Annual Leave Fragmentation
Leave may be granted in segments following an agreement between employer and employee. At least one segment must equal five working days (for five-day work weeks), six working days (for six-day work weeks), or twelve working days (for minors), ensuring adequate rest periods.
Parental Leave Benefits
The law establishes that parental leave benefits are unseizable, non-transferable, and tax-free. They are not subject to any withholding or offset, nor can they be seized by the State or third parties for debts, providing crucial financial protection to new parents.
Adoption and Foster Care Leave
Maternity leave has been extended to cases of child adoption under the same terms and conditions applicable to biological mothers. The duration and deadlines for granting leave are determined accordingly, recognizing that adoptive parents require similar time for family bonding.
Protection for Adoptive Mothers
The protection from dismissal applicable to working mothers has been extended to adoptive mothers (with children up to eight years old). Termination of the employment contract is prohibited during leave and for a specific period after its conclusion, with timing commencing from the child’s placement with the family.
Voluntary Resignation Procedures
Voluntary resignation notifications must be submitted through the ERGANI II Information System. The law specifies submission timing and method, required information, and the legal validity of electronic notifications. Employees must sign personally, electronically, or through gov.gr.
The notification is posted on ERGANI II within two working days, with automatic employee notification. Unilateral notifications follow specified timeframes: three working days plus two working days, providing clarity and preventing disputes.
Grounds for Contract Termination with Compensation
The law identifies several grounds for contract termination with compensation, including: transferring an employee abroad without their acceptance, delayed payment of earned remuneration, and unjustified reduction of any form of employee compensation, particularly due to the employer’s integration into the Digital Work Card system.
Invalidity of Dismissal for Refusing Overtime
It is established that termination of an employment contract is invalid if it occurs due to an employee’s refusal to provide overtime work. This refusal cannot be considered abusive or unjustified, protecting employees from coercion.
Ergani Mobile Application
A free “Ergani” smartphone application would be created, through which employers can post, submit, and modify ERGANI II declarations and forms using their ERGANI II credentials. The application is accessible to people with disabilities, ensuring inclusive access.
Digital Employment Commencement Declaration
Every employer must, before work begins, post a Digital Employment Commencement Declaration in ERGANI II with essential terms. This is valid only with the employee’s signature (handwritten, approved e-signature, or digital verification via gov.gr) or acceptance through MyErgani. Any modification of terms requires a Digital Modification Declaration, also accepted by the employee.
Fast Hiring Application
A special “Fast Hiring” application has been established for fixed-term contracts of up to two days per week. Before commencement, employers must declare essential terms in ERGANI II and, for foreign nationals or minors, upload required documentation.
Employees receive notification in MyErgani and must accept before work begins (and again for any modifications, until the start of the originally declared or modified schedule, whichever is earlier). Τhe new process will be activated following an update of the ERGANI platform.
All protective provisions and digital card marking requirements remain applicable.
Your people are your greatest strength. At Privel Partners, we believe it is the right time to review and update your HR manuals to ensure alignment between your internal needs and current compliance requirements.
Please feel free to address your requests at payroll@privelpartners.gr
