New law to regulate flexible employment relationships

In May 2010, the Greek parliament passed a new law guaranteeing job security. The law, fiercely opposed by employers, covers economically dependent work, part-time and short-time work, temporary agency work, as well as other flexible forms of employment. It also outlines provisions on employee layoffs, working time arrangements, the length of the working week and the resolution of workplace disputes.

The law, entitled Guarantees on Job Security and Other Provisions, was introduced to parliament on 5 May 2010 by the Ministry of Labour and Social Security (YPAKP). It was the result of tripartite consultation with social partner representatives between October 2009 and January 2010. It was one of the first laws to be passed by the new government formed by the Panhellenic Socialist Party (PASOK) elected in September 2009.

Content of law

The most important provisions of the law are outlined below.

Economically dependent work

Previously, the onus was on employees with ‘independent contracts’ to prove that they were in fact employed by a company and entitled to the rights that this brought. However, the burden of proof is now on the employer, providing ‘the employee works only or mainly for the same employer for at least nine months’.

Part-time and short-time employment

Under the new law, those working agreed overtime are to be paid 10% extra on their normal rate. Furthermore, subsidised short-time work can only continue for up to six months in the same calendar year.

Temporary agency work

The principle of non-discrimination is extended to all terms and conditions of employment, whereas before it applied only to pay.

Temporary agency work may be used only for specific reasons justified by exceptional, temporary or seasonal needs. The use of temporary agency work is prohibited under the following circumstances:

• when the indirect employer has, during the previous six months, dismissed employees in the same occupation for economic or technical reasons;

• when due to its nature the work entails particular risks to workers’ health and safety;

• for construction workers.

A person working on a temporary basis at a company for more than 18 months is entitled under the new law to an open-ended contract of dependent employment. It is proposed to reduce this figure, as a general rule, to 12 months.

Employee layoffs

Previously, employers could lay off staff, just by making a statement. However, this was not the case for companies in public utilities and services employing over 5,000 people, where permission to implement employee layoffs was required from the Ministry of Labour.

The new law requires consultation between the employer and unions before any layoffs.

No employee may be laid off for more than three months each year, and after this, another three months must go by before the same employee can be laid off again.

Working time arrangements

The former statutory framework provided that the measure of working time arrangements might be imposed on a four-month basis, following unilateral recourse of the employer to a tripartite Working Time Arrangements Committee. According to the new law, working time arrangements are set by agreement between the employer and the workers’ representatives at company level.

Violation of five-day working week

Employees expected to work six days a week will be paid 30% extra for their time on the sixth day.

Fines for non-appearance at dispute resolution procedure

Employers involved in disputes with individual workers are now liable to a fine of between €500 and €50,000 if they refuse to appear before the Greek Labour Inspectorate (SEPE).

Reactions to new law

The Greek General Confederation of Labour (GSEE) highlighted in a press release (in Greek) that extreme forms of flexibility should be done away with. Their regulation is a step in the right direction, although more decisive, more effective interventions should be made, particularly in the area of hiring out of employees and contracting out.

The employer organisations fiercely opposed the new law and lobbied to alter some provisions. Employers feel that stricter provisions are not needed, but they call instead for the codification of current rules, plus the simplification of bureaucratic procedures.

Sofia Lampousaki, Labour Institute of Greek General Confederation of Labour (INE/GSEE)