The six-day workweek in Greece:When and how will it apply to employees/workers?

The six-day workweek in Greece:When and how will it apply to employees/workers?

With Law 5053/2023, significant changes were made in the labor market, and now businesses can employ their workers on the 6th day of the week. However, this employment must meet certain conditions to be valid, which many people are unaware of. At the same time, the three-year allowance was abolished, as it has been reported, but with several details that need to be considered to understand the issue better.

1.What is initially provided for 6-day work?

To address this issue, the law outlines a series of conditions that, if met, allow the business to employ its workers on the 6th day of the week. First, the business must be classified as continuously operating, meaning its operation is of great importance to the national economy, to the extent that if it is interrupted, it would cause problems for the transactions and needs of the country’s population. However, as the law states, hotel employees and those in the food industry are not included in the 6-day work framework and are therefore not affected by the law’s provision.

Additionally, the employer must declare in the “ERGANI” system that the employee will be working on the 6th day of the week. This declaration must include the specific hours the employee will be working, which cannot exceed 8 hours for the 6th day. Furthermore, on the 6th day, the employee cannot work overtime or extra hours—meaning they cannot “make up” for hours not worked during the week—and thus, that day is considered as separate from the others.

The 6-day work system can only be applied in businesses that primarily operate under a 5-day work system. This is important because if a business had already been employing its workers on a 6-day system before the law was passed, the wages for the 6th day are not increased in the manner we will discuss below, but are calculated differently.

2.What additional pay should the employee receive for working on the 6th day?

To avoid any doubt regarding the pay of employees working 6 days a week, the law states that they will receive the same daily wage as they would for a 5-day workweek, but with a 40% increase. However, this assumes the employee is paid at least the current minimum wage, which is €830 per month for salaried employees, and €37.07 per day for workers. If a collective labor agreement has been made in the business, providing more favorable wage terms than the law, the collective agreement wage will apply.

It is also noteworthy when the 6th workday falls on a Sunday. This is important because for those working on Sundays, the law provides an additional 75% increase on their legal earnings—whether it be the minimum wage or a higher salary set by a collective labor agreement. In such cases, the employee is entitled to both of these wage increases since the law does not exclude one increase by applying the other.

Additionally, if the employee has already exceeded their weekly working hours by the 6th workday—working overtime if they have already worked 40 hours in a week in a business operating under a 5-day system, or if they have worked over 48 hours in a week under a 6-day system (effectively working on the 7th day under the new law)—then the daily wage will be increased by 25%. If the employee is paid less than the minimum wage, the minimum wage will apply, and the calculation will be based on that.

3.I am an employee on probation at a company.What are my rights?

Since this category of employees is very common in practice, it is important to know exactly what the law provides for employees on a probationary period. First, the employer may agree with the employee that the latter will work on probation for a period of up to 6 months. It is important to note that this period is considered as regular working time for the employee, meaning they are entitled to all social security benefits, are eligible for the relevant allowances depending on their profession, and their working time counts towards the accrual of vacation leave from the employer in the future.

This applies regardless of whether the employer decides at the end of the probation period to retain the employee at the company or not. If the employment relationship is suspended (e.g., due to a strike affecting the company), the probation period is also suspended and will be completed later. If the employee has signed a fixed-term employment contract with the employer, the probationary period cannot exceed ¼ of the total duration of the employment contract and in any case, cannot be longer than 6 months. For example, if the contract is for 1 year, the probationary period can last up to 3 months, unless the parties agreed otherwise, with a maximum of 6 months.

In any case, a probationary employee has the same rights (and, of course, the same obligations) as a regular employee. That is, the employer must ensure the employee’s safety in the workplace by taking protective measures, protect them from discrimination and aggressive behavior by others, and employ them in a position that matches their qualifications so the employee can fully utilize their skills. Any agreements between the employer and employee in which the latter renounces their rights (either entirely or for specific ones) are obviously invalid and do not bind the parties.

4.When is the dismissal of an employee legally void?

The dismissal of an employee by the employer is a fairly complex issue that often raises doubts and disagreements. In other words, the dismissal of an employee is void if at least one of the reasons listed below applies. Specifically, a dismissal is considered void if:

  • It is due to illegal discrimination by the employer because of the employee’s gender, nationality, sexual orientation, appearance, beliefs, or opinions, provided none of these affect the employee’s ability or performance at work.
  • It constitutes retaliatory behavior by the employer against the employee for exercising a legal right (e.g., requesting payment for illegal overtime work).
  • The same applies if the employee was a victim of sexual harassment and sought protection from the employer, who then chose to dismiss them as retaliation.
  • It occurs while the employee is on vacation leave.
  • It is due to the employee’s union activity, as unionized workers enjoy increased protection against dismissal (this will be discussed in more detail in another document).
  • It happens because the employee refused to consent to part-time work or irregular hours, provided the employee did not unreasonably reject these conditions.
  • It happens to an employee who is a parent of multiple children or disabled; in such cases, milder measures should be adopted, such as reassigning the employee to another position if possible.
  • It occurs to an employee in a tourism business who is being retrained by the staff or management to take on duties, and therefore is not yet performing “work” in the typical legal sense.

5.Does it matter if the employee’s dismissal is void?

If the employee’s dismissal occurred for one of the reasons mentioned above and is therefore legally void, several consequences arise in favor of the employee and against the employer. Specifically, the employee is entitled to:

  • Request that the employer re-employ them in the business and take on work again. However, the voidness of the dismissal must be recognized by a court ruling.
  • Request the employer to pay the so-called overdue wages, i.e., wages the employee would have received if they had not been illegally dismissed, which the employer is responsible for due to their behavior.
  • However, any earnings the employee received from other work during the time they were formally dismissed from the employer’s business, as well as any wages the employee could have earned from another employer but did not, may be deducted from the overdue wages.
  •  File a lawsuit against the employer for monetary compensation for moral damage, provided the way the dismissal occurred offended the employee’s dignity and lowered their reputation beyond socially acceptable limits.
  • Instead of all the above, the employee may request a reasonable compensation from the court, which must be no less than three months’ wages and no more than twice the legal compensation that would have been paid if the contract had been terminated by dismissal, as discussed in another document.
  • It goes without saying that in order to claim any of the above compensation, the employee must prove the facts that render the dismissal void. However, for some reasons for dismissal, the law favors the employee and stipulates that the employer must prove that the facts claimed by the employee did not occur.

6.The business was transferred to a new employer.What will happen to my contract?

As the economy continues to evolve and businesses “change hands,” the question arises whether employees of the former owner’s business are at risk of being dismissed by the new owner who acquired the business through the transfer. The law is clear here and states that dismissals of employees, whether by the former or new owner, are prohibited if the reason for the dismissal is the transfer of the business. However, this means that dismissals for other reasons (e.g., business, organizational, or financial reasons related to the company) are allowed. The only important factor is that the transfer of the business should not be used as a pretext to justify employee dismissals.

It is self-evident that if dismissals occur where the transfer of the business was the primary or secondary reason, the dismissal will be void, and all the consequences mentioned in the previous question will apply. To prevent the phenomenon of employees being “forced” to resign due to the working conditions set by the employer, the law stipulates that if an employee resigns due to the transfer of the business, it is legally considered that the employer dismissed the employee. Therefore, the employee retains all the rights and claims mentioned above.

Regarding the wages of employees who continue to work in the business after it is transferred to the new employer, the law specifies that both the former and the new employer are liable for wages, contributions to EFKA (Social Security Fund), etc. Therefore, employees can seek unpaid wages from either of the two. However, it is important to note that this provision applies to those who were already employed by the former owner before the business transfer. In contrast, those employed for the first time after the transfer can only take action against the new employer for their wages.

7.What information must the employer declare in the “ERGANI II” system?

With the digital work card now integrated into the daily operations (mainly) of employers, it has become clear what information the employer must upload to the “ERGANI II” information system to avoid issues during possible inspections by the Labor Inspectorate. Specifically, the employer is required to upload to the relevant website:

  • The employee’s written individual employment contract (whether it is for a fixed-term or indefinite term).
  • If the parties had not drafted a written employment contract, they can use the template document available on the Ministry of Labor’s website.
  • The essential terms of the employee’s employment, such as working hours, the location where they will work, and the conditions under which the employment contract operates, etc.
  • The same applies to any changes to the employee’s terms of employment; these changes must also be uploaded online to the “ERGANI II” system.
  • For the agreed terms of employment between the employer and employee to be valid, the employee must sign the document containing the relevant terms, which was drafted between the two parties.
  • Alternatively, the document can be signed digitally or accepted through the “My Ergani” digital platform; otherwise, the terms are invalid, and the employer will face significant penalties during an inspection.
  • These provisions also apply to those working on the 6th day, where the employer must have posted the terms of employment and all the information mentioned above on the digital platform.
  • If the employee works overtime or extra hours, and this change is not recorded in the digital platform, the employer will be fined €10,500 by the relevant Labor Inspectorate.

8.Was the three-year service allowance abolished?

One of the major changes introduced by the law regarding six-day workweeks was the abolition of the service allowance for employees with three years of experience or more in the private sector. In practice, this means that only employees who started accumulating years of service in the same company before February 14, 2012, will be eligible for the three-year service allowance, as their service time will continue to accumulate after January 1, 2024. The same will apply to employees hired for the first time after January 1, 2024.

For employees earning the minimum wage, the increase in salary (due to the allowance if they meet the legal requirements) will be 10% for each three-year period of employment with the same employer, with a maximum increase of 30% for those who have worked for nine years or more. The law states that the allowance can be applied for up to three three-year periods, but no more. However, if the employee’s salary exceeds the current statutory minimum wage (i.e., €830 gross), and they started qualifying for the three-year service allowance after February 14, 2012, there will be no change in their salary for this year, as the conditions for the three-year allowance will start to accumulate again after January 1, 2024.

The law also provides an interesting provision: if, after January 1, 2027, unemployment rates in Greece exceed 10% based on national statistics, the service allowance for three-year periods will be reinstated as we know it today. This reinstatement would aim to address market gaps that might prevent companies from offering adequate wages, necessitating special support. However, since unemployment rates depend on many factors, it will be crucial to see how the labor market evolves in the coming years to avoid sudden changes that would undermine the trust employees have built in the system so far.

9.I work remotely/telework. Do the six-day workweek regulations apply to me?

With the rise of telework as a new form of employment, driven by contemporary needs, critical issues have emerged that the legislator had to address to avoid confusion. Therefore, it is important to highlight several key points in this area:

  • Those who work remotely are not necessarily considered employees; they could also be self-employed. What matters is the level of business risk they assume and whether they are required to follow instructions or directives.
  • Telework can only begin after an agreement between the employee and employer.
  • Exceptionally, telework can be imposed by the employer’s decision for serious public health reasons (as was the case with the COVID-19 pandemic).
  • The employer is required to inform the teleworker about the terms of employment, the way the services must be provided, and the costs involved in acquiring the necessary equipment.
  • The law states that teleworkers have the same rights as those working in the company’s physical premises, unless there are reasons justifying distinctions.
  • Therefore, the six-day workweek regulation can technically apply to remote workers if the company’s needs justify it and the legal conditions are met.
  • However, the law grants teleworkers the right to disconnect from their work and enjoy time for their personal lives without being disturbed by the employer, ensuring real rest periods like those enjoyed by employees working on-site.

10.What are Temporary Employment Agencies (TEAs)?

You may have encountered these companies, as they have recently appeared in the Greek labor market. These are companies that hire workers and then transfer them to temporary employers, who employ them for a limited period, usually temporarily. Thus, the employee has two employers: the Temporary Employment Agency as the direct employer and the temporary employer to whom the employee is assigned under a “loan” arrangement.

It is important to note that temporary workers have the same rights and obligations as regular employees. The only difference is that they are primarily connected to the TEAs, which are responsible for paying their wages and social security contributions. This contractual relationship is formalized through a document, like any individual employment contract, and must include all the terms and conditions that such a contract would normally contain. If an employee is employed by the temporary employer for an excessively long period, beyond what can be considered “temporary,” the law provides that their contract will automatically convert to an indefinite-term contract, without any need for further action by the parties.

Additionally, the temporary employer, to whom the worker is assigned, retains managerial rights and can require the employee to fulfill their work according to the agreed method and schedule. However, the temporary employer also assumes all the obligations of an employer towards the employee, as mentioned in other texts, and must respect and adhere to them. Otherwise, the employee can take legal action against the temporary employer, even for compensation claims, as a contractual relationship exists between them due to the assignment of the employee to the temporary employer through the TEA.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.