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 the 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.
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.
- 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
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 with 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.
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.)