Greece is entering a season of significant changes in labor relations. The Ministry of Labor is preparing a comprehensive bill, expected to reach Parliament in September after public consultation, which promises to reshape work contracts and collective agreements.
At the same time, social dialogue on collective bargaining has entered its crucial second phase. Employers, unions, and other stakeholders are required to submit proposals by the end of September to help create a roadmap for reforms. The goal is to increase coverage of collective agreements from the current 25–30% of workers to 80%, in line with European standards.
One major focus is the threshold for making sector-wide agreements mandatory. Currently, over 50% of employers in a sector must participate, a requirement that limits the expansion of collective contracts. The Ministry of Labor is considering reducing this to around 40% and introducing a permanent mechanism to extend agreements across sectors. Other factors under discussion include considering a sector’s financial health and average wages during negotiations.
However, disagreements remain. Worker representatives emphasize restoring certain protections from the pre-financial-crisis era, including national collective agreements that set minimum wages. Some employer groups also support parts of these measures, particularly for small and medium-sized businesses.
The new bill also introduces flexible work arrangements, including:
- Weekly work schedules with up to 13 hours daily, compensated at 40% above standard overtime for the 13th hour.
- Expansion of four-day workweeks throughout the year, with adjusted daily hours.
- Overtime opportunities for part-time employees working fewer than five days weekly.
- Increased use of trial-period and on-demand contracts, including single-day employment arrangements.
- Flexible clock-in times with deviations of up to 120 minutes, using digital attendance cards.
- The ability to split annual leave into multiple periods.
- Exemption from social security contributions for voluntary or contractually higher overtime payments.
- Stricter penalties for workplace violence against labor inspectors.
These reforms aim to modernize the Greek labor market, offering both flexibility for employers and protections for workers. With collective bargaining reforms and new work arrangements, Greece hopes to align more closely with European labor standards while supporting economic adaptability.
