An employer of record in Greece is necessary for expanding companies that want to set up their operations in this country and hire local workforce. Basically, the employer of record acts as an intermediator between the foreign company and local workforce, by representing the interests of both parties while applying the employment rules applicable in Greece.
Given that each country can have its own rules and regulations when it comes to employment, foreign companies, especially those who did not have previous connections to Greece, can benefit from the qualifications of the employer of record. If you need information on the latest employment regulations, our law firm in Greece remains at your service.
Table of Contents
What is the law regulating the employer of record in Greece?
The Greek employer of record is defined under the Greek law as a type of Greek entity that can provide employment services to companies operating overseas and which expand their operations on the Greek market and are in need of local employees, which are hired by the Greek entity in the name of the foreign company.
This type of business activity is established under the Law 2956/2001. Later on, the Greek law concerning this concept was changed into the Law 4052/2012, a law that implemented the European Union’s regulations into the the country’s national law (the EU law is Directive 2008/104); our attorneys in Greece can provide information on the current applicable regulations.
How to become an employer of record in Greece
Investors who want to open a business in Greece can expand their operations on the human resources market. There are many activities that can be developed in this industry, including operating as an employer of record. In order to have the right to carry out this business activity, companies need to hold proper licenses. For licensing purposes, investors mut present the following paperwork:
- proof of being registered as a legal entity in Greece;
- the company’s articles of association;
- proof of having a registered address;
- an application form signed by the person who has been appointed as the company’s managing director;
- a clean criminal record issued by competent authorities for the managing director.
What are the responsibilities of the employer of record in Greece?
The Greek employer of record (EOR) has a set of responsibilities when it comes to hiring local workforce on behalf of a company. In the list below, our team of Greek lawyers has highlighted some of the main responsibilities:
- taking care of selecting workforce as per the needs of the company;
- hiring local employees following the rules of the employment law;
- the employment contract is signed through the EOR, which holds full responsibility for it;
- the same applies for human resources matters, the taxation of employees, payroll;
- if the company will hire foreign workforce, the EOR will deal with matters related to immigration (visa application, residence permits, etc.).
What is a PEO in Greece?
Please mind that there is a difference between the employer of record in Greece and the PEO in Greece. Although the 2 terms define similar activities, they are created for 2 different corporate situations with similar needs. The employer of record is necessary when a foreign company wants to hire in Greece, but does not need to register a company in Greece.
The PEO is required when for companies with a business set-up in Greece, and which must or want to outsource their workforce to a 3rd party specialized in human resources.
It is also important to be aware of that the EOR is legally responsible for the employment contracts and any other matter deriving from human resources law, while for the PEO, the responsibility is divided between the PEO and the company which hired the PEO services. We invite you to watch a short video about the Greek Employer of Record:
Important matters on employment in Greece
Our law firm in Greece can present the main obligations deriving from an employment contract, as per the applicable rules. Below, you can find out some of the main aspects foreign companies should know:
- the law stipulates that the statutory working week (for full-time contracts) is defined by 40 hours of work (8 hours per day);
- overtime is defined as work activities beyond 45 hours per week, for contracts where the working week is comprised of 5 days, and to 48 hours per week for contracts with 6 working days;
- where this applies, the employee has to be paid 40% more, calculated from the standard salary per hour;
- the basic yearly leave is of 20 days per year (vacation leave) for contracts of 5 days of work per week;
- the number of free days will increase based on the number of years worked – after 10 years, the employee is entitled to 25 days.
Please mind that for contracts of 6 working days per week there are more vacation days granted per year. Along this, Greek employees are entitled to 14 additional free days, which are given as public national holidays. If you want to know more details on the employment regulations available in Greece, our Greek lawyers are ready to assist you.
Probationary period in Greece
When hiring workforce in Greece, companies are entitled to a probationary period, in which the employer and the employee can determine whether the work relationship is a fruitful one for both sides. Thus, regardless of the way in which the employment is made, by direct employment or by outsourcing employment, work contracts contain provisions concerning probationary rules.
According to the Greek law, the probation period can be of maximum 1 year, during which each of the party has the right to terminate the work relationship without any obligations (such as a notice to leave, in which the employee is obligated to work for several weeks after resigning, or severance pay/other employment benefits granted by the employer upon the termination of the contract). In our infographic below, you can find out details on starting a Greek Employer of Record:
Our lawyers in Greece can provide more information on the probationary period provisions which are usually included in a work contract. You can also find out from our team further information on other types of provisions that are added in an agreement, whether it is a probationary or permanent one, for short-term employment or for other types of employment relationships.
We invite you to contact our law firm in Greece for any information that is pertaining to the human resources law and procedures (payroll, taxes, maternity and sick leave, etc.)
Persons who want to obtain a job in Greece can contact us for additional information. If you need to apply for a work visa, you can also contact us. Provided that you want to relocate here on a permanent basis, we suppose that you will also want to own a property. Therefore, our law firm is prepared to provide all the necessary legal support if you want to buy land in Greece for residential purposes.