Termination of Employment Relationships in Greece

Employment contracts can be concluded either for a fixed term or for an indefinite term. The distinction is important, because the rules on how and when the employment relationship ends differ considerably between the two.

Yes. If, after the agreed term has expired, the employee continues to work with the employer's knowledge and the employer raises no objection, the contract is deemed to have been tacitly extended for an indefinite period (Art. 671 Greek Civil Code).

Yes. Under Art. 7 of Law 2112/1920, any unilateral deterioration of working conditions by the employer is treated as a termination of the employment contract by the employer. Typical examples include:

• transferring the employee abroad against his or her will,
• transferring the employee to a lower position,
• reducing the employee's wages.

In such cases, the employee may assert the same rights as in the case of a termination by the employer, in particular the claim to statutory severance pay.

Indefinite-term employment relationships may be terminated by either party. Apart from termination by the employer, they end in particular:

• through termination by the employee (Art. 669 § 2, 670, 672 Greek Civil Code),
• through the death of the employee or, exceptionally, of the employer (Art. 675 Greek Civil Code),
• by mutual agreement of the parties,
• when the employee acquires the employer's business.

In that case, the obligation to pay remuneration lapses, but the employment relationship does not end automatically; a termination is still required. The employee is then entitled to two-thirds of the statutory severance pay (Art. 6 § 2 Law 2112/1920). In the event of the employer's insolvency, however, the full statutory severance pay must be paid.

A fixed-term employment relationship ends automatically by operation of law upon expiry of the agreed period (Art. 669 § 1 Greek Civil Code). No separate notice of termination is required. It also ends upon the death of the employee or, exceptionally, of the employer, and when the employee acquires the employer's business.

Either party may terminate a fixed-term employment relationship without notice at any time for good cause. This right cannot be excluded by contract; any such clause is invalid (Art. 672 Greek Civil Code). The party responsible for the underlying breach of contract is liable for damages (Art. 673 Greek Civil Code).

Whether good cause exists is always assessed on the facts of the individual case. Examples recognised in practice include:

• persistent failure to follow instructions,
• lack of professional aptitude,
• a long-term illness that significantly disrupts business operations,
• an intentional insult.

If the employer terminates a fixed-term employment relationship early without good cause, the employer remains obliged to pay all salaries up to the agreed end of the contract.

Under current law, a right to statutory severance pay arises after a minimum period of employment of one year with the same employer.

The termination must be made in writing. In addition, it is legally effective only if it is registered electronically in the digital labour information system ΕΡΓΑΝΗ II within four working days of the date of termination. In the past, notification to the labour authority OAED (today ΔΥΠΑ) was sufficient; this is no longer the case.

In addition, the payment of the statutory severance pay is itself a condition for the validity of the termination (Art. 5 § 3 Law 3198/1955). Employers should therefore prepare the written notice, the ΕΡΓΑΝΗ II registration and the payment together.

Severance pay increases in stages according to length of service. Since the reform introduced by Law 4093/2012, it is capped at a maximum of 12 months' salary, which is reached after 16 years of service. Previously, under the historical table of Law 2112/1920, severance pay could amount to up to 24 months' salary after 28 years of service.

Yes. Employees who, as of 12 November 2012 – the date Law 4093/2012 took effect – already had more than 17 years of service with the same employer receive an additional severance component. This additional component is capped at €2,000 per additional month's salary.

No. Since Law 4808/2021, there is no longer any distinction between salaried staff (υπάλληλοι) and manual/industrial workers (εργατοτεχνίτες) with regard to severance pay. Both groups are compensated according to the same severance scale.

The basis of calculation is the regular salary for the last month of full-time employment, increased by one-sixth to account for the proportional entitlement to holiday pay and the Christmas and Easter bonuses.

Yes. If the employer gives notice while observing the statutory notice period, the employee is entitled to only half of the severance pay according to the table. If the employment is terminated without notice, the full severance pay must be paid.

If the employee is absent from work without excuse during the notice period, the employment relationship is deemed to have been ended by the employee, and no entitlement to severance pay arises. If, however, the employer releases the employee from work for the duration of the notice period, the entitlement to severance pay remains unaffected.

If an employee holds several employment relationships simultaneously, a separate entitlement to severance pay arises for each employment relationship in the event of ordinary termination.

The exact intermediate values of the severance tables and the annually adjusted calculation ceilings may change. For the calculation in an individual case, it is therefore always advisable to consult the current official tables or to seek advice from an employment law or tax advisor.