With the labor market constantly evolving and more and more laws regulating the relevant fields, many people have questions about basic issues of labor law. Because these play a very important role in how the employee will receive their wages and how the employer will operate their business, in this text we will try to present them in as simple and understandable a way as possible.

1.How is an employment contract formed?

The employment contract basically involves the exchange of benefits between 2 parties (employer and employee): the employee is obliged to provide their work, whether it consists of manual labor or specialized knowledge, and the employer provides in return the wages, which are not necessarily monetary in our days.

For a valid employment contract to be concluded, a written form is not required=it can also be made orally, except for some exceptions provided by law, especially when it comes to a partner’s work in a company. However, the employee must be (legally) mature to enter into an employment contract, meaning they must have legal capacity and not have been declared under judicial support. Even minors can work under conditions which we will see below.

Furthermore, the employer, regardless of whether the employment contract was concluded in writing or orally, must inform the employee of the terms under which they will provide their work, and this information must be provided in a suitable manner (preferably in writing, for easier proof). Additionally, within 2 months from the day the contract was concluded, the employer must inform the Manpower Employment Organization (OAED) about the hiring of the employee, something that, if not done, cannot lead to the invalidity of the contract, but will simply have consequences for the employer.

2. And the duration of the contract?

To better understand the duration of the employment contract, it should be noted that these contracts are distinguished into:

• Fixed-term employment contracts, which explicitly state their start and end date -once the end date passes, they are terminated unless renewed, and the contracting party is no longer considered an employee. The determination of a fixed term is a matter of interpretation and depends on whether the parties explicitly defined something, whether the employee was hired only for the performance of a specific task, whether the employer informed the employee from the outset that their contract would end at a certain point in time, etc. If the employee, after the expiration of the employment contract, continues to work for the same employer and the latter does not object, then it is considered that the contract has been renewed and will now be of indefinite duration. However, this consequence can be excluded especially if the employer includes a clause in the employee’s contract that excludes such a possibility.
• Indefinite-term employment contracts, which are the most common case, and especially if from the interpretation of the contract it is not clear its duration, it is considered indefinite. A case where the duration of the contract is not clearly stated is when the employee is hired to meet the needs of the business in terms of labor, especially if there is a shortage, a case that resembles replacing an employee who is, for example, on leave. In the field of seasonal employment, things are clearer as these contracts are generally considered fixed-term.

3.What is the so-called ‘right to lie’?

It is a concept that many refer to today with somewhat confused content. To put it simply, before the employment of the worker, he contacts the employer to decide whether he is suitable for the job position (usually this is done through the ‘interview’). In this, the employer has the right to ask questions to the employee to understand if he has the required qualifications = the questions must concern the work skills of the employee and should not extend to his personal matters.

However, since what we just mentioned is rarely observed in practice, the courts have shaped the so-called ‘right to lie’ that the employee has during the interview with the employer = if the employer’s questions concern the personality of the employee and therefore are not related to the subject of the job, the employee has the choice either not to answer or to answer falsely if he wishes. This is because these specific questions are not directly related to whether he will be hired for the job position, and therefore if he refused to answer, he could be negatively evaluated by the employer.

Furthermore, the employee is required by law to answer only those questions from the employer that are relevant to his job position (e.g., if he has relevant work experience in the industry, if he has any necessary degree required by law for the job position, etc.). On the other hand, questions about his health or personal/sexual life are not only prohibited but can also constitute indirect discrimination in employment, something that has been explicitly prohibited in Greece since 2016.

4.What if the contract was not valid?

Many times, the employment contract of the employee may have been void for some reason, and the employee may have meanwhile provided his work to the employer. Thus, regarding the issue of the wage he would be entitled to, normally due to the invalidity of the contract, he would not have a claim for wages in principle. However, because this solution is unfair to the employee, the courts have adopted other legal methods to resolve the issue.

So, initially, they consider that the contract was valid until the event that invalidated it occurred = the invalidity applies for the future, especially if the employee had worked for many years and received wages. The same applies if the contract was formally void for many years and the employee learned about this invalidity quite late, so he would be entitled to both the wages he received while the contract was valid and those he received/should have received while he worked for the employer despite the invalidity of the contract, until the point in time he was informed/learned that his contract was void.

Another solution for the employee is the provisions of unjust enrichment, which we had mentioned in another text = although the employment contract was void, the employee despite this provided his work to the employer and thus the latter obtained a benefit, which on the one hand he would not have obtained if the employee had not provided his work due to the void contract, and on the other hand he did not give the employee the consideration he would normally give for his work, namely the wage. However, if the employee files the relevant lawsuit against the employer, it is crucial that he will not be able to claim the benefits he would have received if the contract was valid, as well as the ‘salary’ he would receive, especially if the salary was not agreed upon between the two parties (some decisions state that the employee will receive the minimum wage he would normally receive, while others state that he will receive the agreed wage given for similar work under the same conditions as those of the specific employee).

5.What are the main obligations of the employee?

Although the issue may seem simple at first glance, the employee has a series of obligations to the employer, which if violated may not only lead to dismissal but also may not entitle him to compensation under the law and (in some cases) may require him to compensate the employer. Thus, the employee is obliged to:

• Provide his work to the employer and be ready to provide it.
• Provide his work himself, although he may use assistants if this has been explicitly agreed upon and if it suits the nature of the profession.
• Not to cause damage (directly or indirectly) to the employer = to handle with care the equipment provided by the employer for work.
• To observe the obligation of non-competition = not to disclose the company’s secrets to third-party competitors that could harm the employer.
• To perform similar tasks to the position he is in (this is different from additional tasks for which he would be entitled to additional compensation).

It is not excluded that the parties have included other obligations of the employee in the employment contract. However, here caution is needed, as these obligations must be in accordance with the law, the collective labor agreements that may exist in the industry/profession of the employee (these determine the minimum protection of employees in terms of working hours/wages/allowances, etc.), as well as the workplace regulations (if any) of the company where the employee is. Thus, if the term of the employment contract does not agree or is in conflict with any of the above, then this term can be considered void by the court and therefore not applicable in the employment relationship of the employee.

6.What about underage employees?

The employment of minors as workers appears quite frequently in practice, with many unaware of the legal requirements for the employment to be valid, so as not to have issues with the Tax Office or the Financial Crimes Unit (SDOE). Let’s analyze these requirements in detail:

• Firstly, only minors over the age of 15 are allowed to work as a rule = there are exceptions for certain sectors.
• For a minor to work legally, they must have a certified work permit (valid for 1 year), issued by the competent Labor Inspectorate.
• To obtain this permit, a basic requirement is for the minor to undergo examinations by a public hospital/doctor to confirm that there is no risk from the work they will be employed in.
• In addition to this permit, the employer is required to sign a declaration confirming that the minor will not be employed in hazardous/unhealthy work conditions during their employment.
• Furthermore, minors are prohibited from working overtime = they are not allowed to work from 10 pm to 6 am.
• As an exception and upon the employer’s request, the employment of minors under the age of 15 may be allowed in certain sectors (e.g., theatrical/performing arts).
• Naturally, for the work permit of the minor to be valid in each case, consent and signature from their parents or legal guardians are required.

7.How is the salary paid by the employer?

Regarding the payment of the salary, it is given by the employer after the employee has provided their work = advance payment is not common in practice. The salary can be agreed to be paid at regular intervals (weekly/15 days/monthly). Therefore, the agreement between the parties is crucial here.

Regarding the method of payment, it has been mandatory for several years for the salary to be transferred to the employee’s bank account, where usually the salary is given ‘net’ meaning without the social security contributions which are deducted by the relevant funds of the employee through the employer who pays the relevant contributions.

In the indefinite legal sense of the salary, it includes not only the remuneration for the provision of the employee’s work but also any benefits that the employee is entitled to receive by law (seniority allowance, maternity allowance, etc). However, it is critical to note that voluntary benefits from the employer to the employees (productivity bonuses, etc.) are not included in the salary concept = the calculation base of the salary will start with the comparison between the legal minimum wage and the contractual wage received by the employee from the employer. If the latter is numerically and accountably greater than the former, then everything is legal. Otherwise, the employee will be entitled to receive at least the legal minimum wage (or the difference between the two aforementioned wages), and if the employer does not agree, the employment contract may be terminated due to the employer’s unilateral detrimental change of the employment terms.

8.When can the employer not pay the salary to his employee?

Although the primary obligation of the employer is to pay the employee’s wages, in certain cases, the payment of wages to the employee is not justified, especially if the employee has committed some misconduct during the performance of their work. The reasons are several, and new ones are constantly being created by the courts. However, here we will mention the most basic reasons one might encounter today.

For example, an employee is not entitled to wages if they, through calculated irregularities, deliberately attempt to provoke their dismissal by the employer in order to receive legal compensation (e.g., consistently arriving late to work, intentionally reducing productivity, etc.).

Furthermore, an employee is not entitled to wages if they participate in an illegal strike, which is a strike declared illegal by a court decision. However, in this case, after the illegal nature of the strike has been declared, the employer must invite the employee to offer their work, and if the employee refuses and continues to participate in the strike, they are not entitled to wages.

Moreover, if an employee engages in a work stoppage—refusing to offer their work to the employer until the employer pays the due wages/benefits, etc.—the employer may be exempted from the obligation to pay wages to the employee. This is only if the work stoppage is abusive, meaning it is done pretextually, especially for insignificant amounts that do not justify the non-provision of work by the employee, or with the intention of revenge against the employer due to previous disputes, etc.

9.Does the employer have other obligations?

In addition to the employee, the employer also has some obligations beyond the obvious one of paying wages to them. Specifically, the employer owes to all those who work for or with them:

• To ensure the safety and health of employees = maintaining safe facilities in the workplace to avoid workplace accidents.
• To respect the dignity of employees, i.e., not engaging in acts of insult/defamation against them and taking action when an employee becomes a victim of harassment in the workplace.
• To ensure the confidentiality of personal data = not installing cameras in areas where it is prohibited, not storing employees’ phone conversations, and informing employees about any processing of their personal data.
• To treat all employees equally, i.e., not engaging in unjustified discrimination among them and not granting privileges to some of them unless justified by their position or serious business reasons.
•  To accept the work of employees and to employ them appropriately = not placing them in job positions completely different from their original position, or entirely unrelated to those agreed upon at their hiring.
• To provide the legally prescribed leaves for employees as well as the benefits provided by the respective collective labor agreement, provided that the employees are covered by it and are actually entitled to them.

The above obligations of the employer, if not observed by them towards the employees, may be considered as a unilateral harmful change in the terms of employment = justifying the termination of the employment contract by the employees, as mentioned above. Furthermore, the claim for compensation of the employees against the employer cannot be ruled out, especially regarding the part concerning personal data, which we will address in our next text.

10.When is the employment contract terminated?

To address this issue, we need to distinguish between general and specific reasons that legally justify the termination of the employment contract.

Regarding the general reasons for terminating the employment contract, it can be terminated:

• If agreed upon explicitly by the parties, with a new contract that essentially considers the initial employment contract as fixed-term.
• In the event of the employee’s death, in which case the contract is terminated solely by that fact, and no additional formalities are required.
• The death of the employer is a reason for termination of the contract, only if the work of the employee was personal and confidential = it does not apply to companies/businesses where usually the legal entity will continue under new management.
• When the law provides for self-righteous termination of the contract (this usually applies to those working in the Public sector/Municipalities/Regions).

Regarding the specific reasons for terminating the employment contract, the most important of these is the termination by the parties. To have a clear picture, we need to distinguish here as well:

• In contracts of indefinite duration, regular termination is provided, i.e., termination of the contract without the need for any significant reason justifying the termination. However, since these contracts do not have a specified expiration date, their termination will produce effects after a certain deadline, in order for the employer to prepare for the possible departure of the employee.
• In fixed-term contracts, on the contrary, extraordinary termination is primarily provided, which requires the existence of a significant reason, i.e., an incident that, based on logic, makes the employer-employee relationship particularly difficult for the future, justifying the termination. Because fixed-term contracts expire at a certain point in time, the cause for termination should be particularly serious to justify the termination of the contract, so that the expectations of the parties who relied on the energy of the contract until a certain point in time are not unjustifiably frustrated.

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, contact us.