A technology company based in the Netherlands decides to hire its first local sales manager in Athens. The onboarding moves quickly. Six months later, it faces a labour inspection, a backdated social security assessment, and a complaint from the employee about missing contractual terms. None of this was anticipated – yet all of it was foreseeable. Greek employment legislation imposes specific obligations on every employer, regardless of where the parent company is registered. Missing even one step exposes the business to liability that far exceeds the cost of getting it right at the start.
An employment contract in Greece must be supported by a written statement of terms delivered to the employee within eight weeks of the start date, registration with the Greek social security authority before the employee's first working day. Additionally. Submission of the hiring notification through the Ergani (Ministry of Labour's electronic declaration system) no later than the day work begins. Greek employment legislation sets minimum floors for wages, working hours, notice, and severance that cannot be waived by agreement. A collective agreement may apply on top of the statutory baseline, depending on the sector and the employer's registration.
This guide covers the step-by-step process for structuring and formalising employment contracts in Greece, the documentary requirements. The most frequent errors made by foreign employers. Additionally, a decision checklist to match the right contract type to your business situation.
The regulatory setting for employment contracts in Greece
Greek employment legislation forms a dense, protective body of law. It draws on both EU directives and a long domestic tradition of strong worker protections. For a foreign employer entering the Greek labour market, the first important insight is this: the employment relationship is regulated at multiple levels simultaneously.
At the base sits Greek employment legislation, which sets minimum standards for wages, rest periods, annual leave, overtime, and termination. Above that layer, a collective agreement – Syllogiki Symvasi Ergasias (collective bargaining agreement under Greek law) – may apply. Collective agreements operate at the national, sectoral, or enterprise level. A foreign employer hiring in a sector covered by a sectoral collective agreement must comply with its terms, even if the company has no Greek trade union relationship of its own. Ignoring this layer is one of the most common and costly oversights for businesses entering Greece from abroad.
The Ergani system is the backbone of Greek employment administration. Every hiring event, change to employment terms, and termination must be declared through this platform. The declaration of a new hire must be submitted before the employee starts work – not after, not on the same day, but strictly before. A late Ergani submission triggers automatic administrative fines under Greek employment legislation.
The competent authority for labour inspections is SEPE – Soma Epitheorisis Ergasias (the Labour Inspectorate) – which has broad powers to audit employment records, payroll data, and working time. SEPE inspectors can visit without prior notice. They check Ergani submissions, social security registration, payslip records, and contractual documentation. For a foreign employer with a Greek workforce, SEPE compliance is not a back-office matter. It is a frontline business risk.
Two contract types dominate the Greek market. Indefinite-term contracts are the default. Fixed-term contracts are permitted but must meet specific conditions. If a fixed-term contract is renewed consecutively without objective justification, Greek employment legislation converts it into an indefinite-term contract by operation of law. This conversion carries significant financial consequences at termination, since severance calculations are based on length of service under the indefinite-term regime.
For businesses comparing the Greek employment setting with other EU jurisdictions. Our guide to employment contracts in Portugal sets out a parallel analysis of the Iberian model. This shares several structural similarities with the Greek system.
Step-by-step process: from offer to compliant contract
The sequence below reflects the order in which actions must be taken. Reversing or skipping steps creates compliance gaps that are difficult to remedy retroactively.
Step 1 – Establish the employing entity. A foreign company cannot simply pay a Greek employee from abroad without a Greek legal presence in most cases. If the employee works physically in Greece on a regular basis, Greek social security legislation requires an employer registration. This usually means establishing a Greek branch, subsidiary, or using a compliant employer-of-record arrangement. Confirm the structure before any hiring commitment is made. The corporate steps involved in setting up a Greek presence are covered in our corporate law service for Greece.
Step 2 – Determine the applicable collective agreement. Before drafting the contract, identify whether a national general collective agreement, a sectoral collective agreement, or an enterprise-level agreement applies. The applicable collective agreement sets minimum pay scales, classification grades, and certain working conditions. The contract cannot offer less than these minimums. Check the sector code of your Greek entity and cross-reference it with the active collective agreements registered with the Ministry of Labour.
Step 3 – Draft the employment contract. The written contract must include the employer's identity and registered address, the employee's identity and tax identification number, the start date. The place of work, the job title and duties, the remuneration amount and payment frequency, the working hours and schedule, the applicable collective agreement (if any), the notice period, and annual leave entitlement. Contracts are typically in Greek, or in bilingual format for international hires. An English-only contract does not satisfy the Greek statutory requirements in a labour dispute.
Step 4 – Submit the Ergani declaration. Before the employee's first working day, log in to the Ergani platform and submit the hiring declaration (Form E3). The system generates a confirmation number. Retain this confirmation as part of the employment file. For part-time or shift-based employees, an additional schedule declaration (Form E4) is required.
Step 5 – Register with the social security authority. Greece's principal social security body is EFKA – Eniaios Foros Koinonikis Asfalisis (the Unified Social Security Fund). The employer must be registered with EFKA and must register the employee on or before the first day of work. Monthly contributions cover healthcare, pension, and unemployment insurance. Both the employer and employee portions must be paid by the prescribed monthly deadline. Late payment triggers penalty interest and formal enforcement proceedings.
Step 6 – Deliver written contractual terms. Within eight weeks of the start date, the employer must provide the employee with a written statement covering all material terms. In practice, delivering the signed contract on or before day one satisfies this requirement and is strongly preferred. Keep a signed copy in the personnel file.
Step 7 – Maintain ongoing compliance records. Greek employment legislation requires employers to keep a personnel register (Pinax Prosopikon – employee register), payroll records, working time records, and copies of all Ergani submissions. These records must be available for SEPE inspection at any time. The retention period under Greek law is at least five years for most employment documents.
To receive an expert assessment of your hiring structure in Greece, contact us at info@ferrazwhitmore.com.
Documentary checklist and common errors by foreign employers
The following documents must be in place before or at the start of employment. Gaps in this list are the most frequent trigger for SEPE fines and employee claims.
- Signed employment contract (in Greek or bilingual format)
- Ergani hiring declaration confirmation (Form E3)
- EFKA registration confirmation for the employee
- Working time schedule declaration (Form E4, where applicable)
- Signed receipt of the employee handbook or internal regulations, if applicable
Foreign employers entering Greece for the first time tend to make the same errors. Understanding them in advance prevents the most serious consequences.
Treating Ergani as an administrative afterthought. The most frequent violation found by labour inspectors is a late or missing Ergani submission. The fine is applied per employee per violation. For a company that onboarded several employees informally over a period of months, the accumulated fines can be substantial. The rule is absolute: submit before the first working day, without exception.
Using a foreign-law contract for a Greek employee. Some foreign employers simply translate their standard home-country contract and ask the Greek employee to sign it. This creates a serious problem. If the employee works in Greece and is habitually employed there, Greek employment legislation applies as a mandatory overlay under EU private international law rules. The foreign-law contract may not provide the Greek minimum notice period, the correct severance calculation, or the applicable collective agreement terms. In a dispute, a Greek labour court will apply Greek employment legislation regardless of the governing law clause.
Misclassifying employment relationships. Classifying an employee as an independent contractor to avoid social security obligations is treated as a serious violation under Greek law. SEPE and EFKA both have authority to reclassify the relationship and assess backdated contributions with interest and penalties. The reclassification risk is particularly acute where the individual works exclusively for one client, follows a fixed schedule, and uses the employer's equipment.
Overlooking the collective agreement pay floor. A foreign employer may offer a salary that seems generous by European standards but fails to meet the applicable sectoral collective agreement minimum for the employee's grade. If the collective agreement minimum exceeds the contractual salary, the employee is entitled to the higher amount. The shortfall can be claimed retrospectively for up to five years.
Failing to document working time. Greek employment legislation requires employers to maintain detailed working time records, especially for employees working variable or extended hours. Overtime must be declared through Ergani and compensated at the statutory rate. Employers who do not maintain working time records lose the ability to rebut overtime claims, since Greek labour courts place the burden of proof on the employer in such disputes.
Termination procedure and dismissal notice obligations
Ending an employment relationship in Greece requires strict procedural compliance. Errors at this stage are the most financially damaging for foreign employers.
Under Greek employment legislation, dismissal of an employee on an indefinite contract requires either advance written notice or payment in lieu of notice, combined with a statutory severance payment. The dismissal notice period is tied to the employee's length of service. Shorter-service employees receive shorter notice; employees with many years of service are entitled to several months' notice. Both the notice letter and the accompanying severance calculation must be documented in writing.
The severance amount itself is calculated on the basis of the employee's average monthly salary and years of service. It is paid separately from the final salary instalment. If the employer fails to pay severance on termination, the employee may bring a claim before the Greek labour courts within a limitation period set by employment legislation. Greek labour courts process straightforward wage and severance claims relatively promptly – often within several months at first instance – but contested dismissal cases can take longer.
Termination for just cause – such as serious misconduct – follows a different path. The employer must be able to substantiate the grounds. Documentary evidence of warnings, performance records, and the specific incident is critical. Without this, a court is likely to treat the termination as ordinary dismissal and award full severance plus the notice equivalent.
Mass redundancy procedures follow a separate, more demanding set of rules under Greek employment legislation. These include mandatory notification to SEPE, a consultation period with employee representatives, and specific limits on the number of dismissals permitted within a calendar month relative to total headcount. A foreign employer restructuring its Greek operations without following the mass redundancy procedure exposes itself to nullification of the dismissals and reinstatement orders.
The termination procedure also involves a final Ergani declaration, which must be submitted promptly following the end of the employment relationship. Late termination declarations attract fines in the same way as late hiring declarations.
For a tailored strategy on employment contract compliance and termination in Greece, reach out to our employment law team in Greece or contact us at info@ferrazwhitmore.com.
Self-assessment checklist: which approach fits your situation
Use the criteria below to identify the right structure before committing to a hire.
An indefinite-term employment contract in Greece is appropriate if: the role is ongoing, there is no specific project end date. The employee will be integrated into the employer's regular operations. Additionally, the company already has or is establishing a Greek legal presence with EFKA registration.
A fixed-term contract is appropriate if: the role is tied to a specific project with a defined completion date. The position covers a temporary increase in workload. Alternatively, the hire substitutes for an absent employee on a known return date. The fixed-term basis must be stated in the contract and the objective justification must be genuine. Renewal without justification converts the contract to indefinite term.
Before initiating any hire in Greece, verify:
- The employing entity is registered in Greece with both EFKA and the tax authority
- The applicable collective agreement has been identified and its pay scales checked
- The Ergani account is active and the administrator can submit declarations
- The contract is in Greek or bilingual form and covers all mandatory terms
- A signed copy of the contract will be retained in the personnel file from day one
Switch your approach if: the individual is initially engaged as a contractor but works exclusively for your entity, follows a fixed schedule, and uses your equipment. At that point, the risk of reclassification as an employee is high. Address the classification issue before a SEPE inspection forces the point.
The economics of non-compliance are clear. Administrative fines for Ergani violations, backdated EFKA contributions with penalty interest. Additionally. A retroactive collective agreement pay adjustment for a single employee over five years can collectively exceed the total annual salary cost of that employee. Getting the structure right from the outset costs a fraction of that exposure.
Frequently asked questions
Q: Does an employment contract in Greece have to be in writing?
A: Greek employment legislation requires the employer to provide the employee with a written statement of employment terms within eight weeks of the start date. While an oral contract is technically valid, the absence of a written document exposes the employer to significant liability. In practice, written contracts are standard and strongly advisable for all hires.
Q: How long is the dismissal notice period in Greece?
A: The dismissal notice period depends on the employee's length of service and whether notice is given or substituted by severance pay in lieu. For employees on indefinite contracts, notice periods range from one month for shorter-service staff to several months for long-service employees. Employers who bypass the notice requirement must pay an enhanced severance amount under Greek employment legislation.
Q: What social security obligations apply to a foreign employer hiring in Greece?
A: Any employer – Greek or foreign – hiring employees who work physically in Greece must register with the competent Greek social security authority and make monthly contributions covering both the employer and employee share. Failure to register and pay social security on time results in significant financial penalties and may expose company officers to personal liability. Engaging a lawyer in Greece with local payroll experience is the most effective way to avoid registration errors.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our employment law practice supports international companies entering the Greek market by structuring employment contracts, managing collective agreement compliance, and guiding clients through termination and social security procedures. We combine Portuguese civil law expertise with English common law tradition – an approach that serves clients whose workforce spans multiple legal systems. The firm's employment team has experience advising on Greek and broader European employment matters for technology companies, financial institutions, and multinational employers expanding into Southern and Eastern Europe. As a law firm in Greece-related matters, we work alongside trusted local counsel to deliver integrated advice that covers both the strategic and the procedural. To discuss your employment structure in Greece, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.