Employer of record in Greece | Employment Law

Employment Law in Greece

Contracts

In Greece, employment contracts must be in writing, and they can be fixed-term or indefinite, depending on the nature of the job and the agreement between the employer and employee. Indefinite employment contracts must include benefits such as social security contributions, paid annual leave, and severance pay. Fixed-term employees are entitled to the same benefits as indefinite employees from the first day of work.

Termination and notice periods

In Greece, labor laws require employers to provide written notice of termination or pay in lieu of notice, with a minimum of one month for employees who have completed at least one year of continuous employment. In most cases, terminated employees are entitled to a fair process, and just cause for dismissal includes the following:

• Theft
• Insubordination
• Habitual negligence of duty
• Lack of capability
• Prolonged illness
• Redundancy
• Serious misconduct

Employees with at least 12 consecutive months of continuous employment are entitled to severance pay equivalent to one month's wages for each completed year of service, with a minimum of two months' wages. There is no statutory gratuity payment in Greece; however, additional compensation may be provided based on employment contracts or collective agreements. As your employer of record (EOR) in Greece, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with national labor standards and minimize legal risks.

Probation periods

In Greece, probation periods are explicitly addressed in local law, generally set at six months for indefinite-term contracts, with proportionate durations applicable for fixed-term employment, as specified in employment contracts.

Working hours and overtime

Presidential Degree 62/2025, which was enacted in 2025, allows for longer periods of overtime — up to four extra hours per day — with employee consent. These increased overtime hours are permissible as long as the hourly overtime wage is increased by 40%, employees get at least 11 consecutive hours of daily rest, and the amount of overtime worked per year does not exceed 150 hours.

The country’s new framework also allows for more flexible working arrangements, such as a four-day workweek, which has a limit of 10 hours per day and 40 hours of work per week.

Taxes

Employers in Greece must adhere to various taxation and regulatory compliance requirements to operate legally and avoid penalties.

• Corporate tax: Domestic companies are taxed at 22%, with certain sectors subject to different rates.
• Value added tax (VAT): VAT applies to businesses with an annual turnover exceeding specific thresholds. Employers must register, file periodic returns, and pay VAT at a standard rate of 24% on applicable goods/services.
• Withholding tax (WHT): Employers must deduct WHT from payments such as dividends, interest, and royalties. WHT must be deposited according to the prescribed schedule, and relevant returns must be filed.
• Income tax returns (ITR): ITRs are filed annually based on company profits. Companies must also file annual financial statements with the relevant authorities and comply with electronic filing requirements.

Employer payroll contributions

Greece’s social security system requires employer contributions that are dependent on the total number of employees, and these contributions cover pensions, medical care, disability insurance, and gratuity payments. In addition, workers’ compensation is financed by contributions from state governments, employers, and employees.