Labor law plays a crucial role in the economy and, consequently, holds a key position within the Greek legal system. It has undergone numerous amendments to reflect developments in the labor market. In particular, since 2010, measures adopted in response to the financial crisis have led to frequent changes that have significantly impacted Greek labor law.
Greek labor law is divided into two main branches: general labor law and collective labor law. General labor law is established through various statutes that regulate different aspects of the employment relationship. In addition, the Greek Civil Code sets out general principles of employment and forms the basis for the mutual obligations between employer and employee. Specific issues such as termination of employment, severance pay, Easter and Christmas bonuses, annual leave and vacation pay, as well as working time and overtime regulations, are governed by separate statutes.
Collective labor law is primarily regulated by two main statutes, with supplementary provisions scattered across other legislative texts. A significant development in recent years has been the termination of nearly all collective agreements under Greek law.
Social insurance is mandatory in Greece for all Greek citizens and for individuals residing or working in the country. Accordingly, anyone engaged in professional activity in Greece is subject to compulsory social insurance coverage. The main social insurance funds include: IKA (private-sector employees); OAEE (entrepreneurs and freelancers not covered by ETAA); ETAA (professionals such as engineers, lawyers, and doctors); OGA (farmers); and NAT (seafarers).
Since 2010, Greece’s social security system has undergone significant reforms due to the financial crisis. These reforms include, for example, the abolition of the minimum retirement age and increased contribution rates for certain groups. However, individuals already insured in another EU member state may be exempt from compulsory Greek social insurance, in accordance with EU coordination rules.