Collective Dismissals in a nutshell – Greece

Collective dismissals in Greece are regulated by Law 1387/1983 (Government Gazette A’ 110), as amended and in force, which fundamentally changed the procedure for controlling collective dismissals. The main reason for this legislative change was the need to align Greek legislation with Council Directive 75/129 of the European Communities and its subsequent Directives 92/56 and 98/59.

Definition of collective dismissals

Collective dismissals are considered to be dismissals that occur in businesses or enterprises that employ more than 20 employees, for reasons that do not concern the personal characteristics of the dismissed employees and exceed the following numerical thresholds every calendar month:

• six (6) individuals for businesses employing from twenty (20) to one hundred fifty (150) employees.
• a percentage of 5% of the workforce and up to thirty (30) individuals for businesses employing over one hundred fifty (150) employees.

Scope

The provisions of Law 1387/1983 apply to employees employed under an employment relationship in all private sector enterprises as well as in the Public Sector, Local Authorities (OTA) and Legal Entities under Public Law (NPDD) operating according to the principles of the private economy.

In collective dismissals caused by the cessation of business activities or exploitation, following a judicial decision, restricstions do not apply.

The provisions of this law do not apply: a) to employees under fixed-term employment contracts or contracts linked to the execution of specific work or tasks, unless the dismissals occur before the expiration of the employment contract or before the completion of the work or tasks, b) to personnel of the Public Sector, OTA, and NPDD employed under private law employment relationships, and c) to ship crews.

Employer’s obligation for information and consultation

The employer must, before proceeding with collective dismissals, engage in consultations with employee representatives to explore the possibility of avoiding or reducing dismissals and their adverse consequences.

Specifically, the employer must provide employee representatives with all relevant information and inform them in writing a) of the reasons for the dismissals, b) the number and categories of employees to be dismissed, c) the number and categories of regularly employed employees, d) the timeframe for the dismissals, e) the criteria for selecting the employees to be dismissed.

The obligations of the employer for consultation with employee representatives and their information apply regardless of whether the decision for collective dismissals is taken by the employer or by an enterprise controlling the employer.

As part of the consultations with employee representatives, the employer may propose a social plan for the dismissed employees, i.e., measures to mitigate the effects of dismissal (financial support for insurance coverage, training and counseling for reintegration into the labor market, opportunities, methods, and criteria for their priority re-employment, etc.).

Copies of the above documents are submitted by the employer to the Supreme Labor Council (ASE).

Procedure for collective dismissals

The deadline for consultations between the employer and the employees is thirty (30) days and begins from the employer’s invitation for consultations. The outcome of the consultations is documented in minutes submitted by the employer to the ASE.

If there is an agreement between the parties, collective dismissals are carried out according to the content of the agreement and take effect ten (10) days from the date of submission of the consultation minutes to the ASE.

If there is no agreement between the parties, the ASE within an exclusive period of ten (10) days determines whether the obligations of the employer for information and consultation were met. If the ASE finds that the employer’s obligations were met, the dismissals take effect twenty (20) days from the issuance of the decision. Otherwise, it extends the consultations or sets a deadline for the employer to fulfill the above obligations. If the ASE, with a new decision, finds that the employer’s obligations were met, the dismissals take effect twenty (20) days from the issuance of the decision. In any case, dismissals take effect sixty (60) days from the communication of the consultation minutes.

Collective dismissals made in violation of the provisions of this law are void. The provisions for valid termination of the employment relationship and the payable compensation apply to collective dismissals.

The competent authority for Collective Dismissals is the Department of Labor Protection of the Directorate of Collective Agreements of the Ministry of Labor and Social Affairs, at Stadiou 29, Athens, Zip Code 10559.