Termination of employment relationships in Greece is primarily governed by Articles 669 et seq. of the Greek Civil Code. Employment contracts may be concluded either for a fixed term or for an indefinite term. A fixed-term employment contract terminates automatically upon the expiration of the agreed period (Article 669 Civil Code). However, if the employee continues to provide services after the contract’s expiry and the employer accepts them, this is considered a tacit renewal, and the contract is deemed to have been converted into an indefinite-term employment contract.
Indefinite-term employment contracts may be terminated by either party. According to Article 7 of Law 2112/1920, any unilateral alteration of essential working conditions to the detriment of the employee constitutes a de facto termination by the employer. Examples include the employee’s forced transfer abroad, reassignment to a lower position, or a reduction in salary/
Indefinite-term employment relationships in Greece may be terminated in the following ways:
- By the employee’s resignation, pursuant to Articles 669 §2, 670, and 672 of the Civil Code.
- By the death of the employee, or in exceptional cases, the death of the employer (Article 675 Civil Code).
- By mutual agreement between employer and employee, as provided in Article 8 §1 of Law 3198/1955 (e.g., after 15 years of continuous service). Outside these cases, mutual termination is still possible by general agreement.
In cases where the employee acquires the employer’s business, thereby rendering the employment relationship incompatible with its original structure.
In addition, an employee’s inability to perform work—when not attributable to legally protected causes such as illness, accident, compulsory military service, or pregnancy—may, under certain circumstances, be interpreted as a tacit termination by the employee. However, such situations do not automatically constitute termination and may require judicial interpretation and evaluation on a case-by-case basis.
Ιf the employer is unable to accept the employee’s services due to an impediment—such as force majeure—there is no obligation to pay remuneration for the period of non-performance. However, this does not result in automatic termination of the employment relationship; a formal termination must still occur. In cases of force majeure, the employee is entitled to two-thirds of the statutory severance compensation, in accordance with Article 6 §2(2) of Law 2112/1920.
In contrast, in cases of insolvency, the employer is obliged to pay the full statutory severance compensation, pursuant to Article 6 §2 of Law 2112/1920 and Article 9 §2 of Royal Decree 16/18.7.1920).
Fixed-term employment contracts in Greece may be terminated in the following ways:
Expiry of the Contract:
Fixed-term contracts terminate automatically upon the expiry of the agreed duration (Article 669 §1 Civil Code).
However, if the employee continues to work after the expiry—with the employer’s knowledge and without objection—the contract is deemed converted into an indefinite-term employment relationship (Article 671 Civil Code).
Termination for Just Cause (Without Notice):
Either party may terminate the contract at any time for just cause, without notice.
Any contractual clause that excludes this right is legally invalid (Article 672 Civil Code).
A serious breach of contract may constitute just cause, and the party at fault is liable for damages (Article 673 Civil Code).
In cases where the employer’s personal or financial situation changes substantially, the court may, at its discretion, grant the employee appropriate compensation (Article 674 Civil Code).
In individual cases, the employer may terminate a fixed-term employment contract without just cause; however, they are then obliged to pay the employee full wages for the remainder of the originally agreed term.
A fixed-term employment relationship is automatically terminated in the following situations:
- Death of the employee, or in exceptional cases, the death of the employer (Article 675 Civil Code).
- Acquisition of the employer’s business by the employee, which renders the employment relationship incompatible with its original purpose. Severance for Loss of Employment (Salaried Employees)
Under Greek labor law, severance compensation is payable only in cases of ordinary dismissal (i.e., without cause) of indefinite-term salaried employees, and only after a minimum employment period of two months. Key requirements include written notice of termination and notification to the competent employment authority (OAED), in accordance with Article 1 §1 of Law 2112/1920, as amended by Article 1 of Law 4558/1930. The dismissed employee is also entitled to compensation for unused leave.
The following table summarizes severance or notice periods scaled by length of service, based on monthly salaries, in accordance with Article 1 of Law 2112/1920, as amended by Article 1 of Law 4558/1930:
| Length of service | Notice period or severance | Length of service | Notice period or severance |
| 2 months to 1 year | 1 month or 1 month’s salary | 17 years | 13 months or 13 months’ salary |
| 1 year to 4 years | 2 months or 2 months’ salary | 18 years | 14 months or 14 months’ salary |
| 4 years to 6 years | 3 months or 3 months’ salary | 19 years | 15 months or 15 months’ salary |
| 6 years to 8 years | 4 months or 4 months’ salary | 20 years | 16 months or 16 months’ salary |
| 8 years to 10 years | 5 months or 5 months’ salary | 21 years | 17 months or 17 months’ salary |
| 10 years | 6 months or 6 months’ salary | 22 years | 18 months or 18 months’ salary |
| 11 years | 7 months or 7 months’ salary | 23 years | 19 months or 19 months’ salary |
| 12 years | 8 months or 8 months’ salary | 24 years | 20 months or 20 months’ salary |
| 13 years | 9 months or 9 months’ salary | 25 years | 21 months or 21 months’ salary |
| 14 years | 10 months or 10 months’ salary | 26 years | 22 months or 22 months’ salary |
| 15 years | 11 months or 11 months’ salary | 27 years | 23 months or 23 months’ salary |
| 16 years | 12 months or 12 months’ salary | 28 years and above | 24 months or 24 months’ salary |
If the employer terminates the employment without observing the required notice period, the severance pay is calculated based on the employee’s length of service as indicated in the table above.
If termination is made with proper notice, the employee is entitled to receive half of the applicable severance amount.
Note: For a valid termination, the employer must clearly state the applicable notice period and concurrently offer the corresponding severance payment to the employee.
If the employee is absent during the notice period, the termination is deemed to have occurred at the employee’s initiative, and no severance is payable. If the employer releases the employee from the obligation to work during the notice period, the severance payment remains due. The notice period itself is not included in the calculation of length of service for the purpose of determining the severance amount.
Employees who hold multiple simultaneous employment relationships are entitled, in the event of ordinary termination, to separate severance compensation for each employment relationship.
(Status as of May 2010. All information subject to change and without guarantee.)