Following the new labor bill, titled “Fair Work for All: Simplification of Legislation-Support for Workers-Protection in Practice,” the Ministry of Labor and Social Security provides answers to 16 crucial questions. As the Ministry emphasizes, this is a bill that comes from the labor market, since many of its regulations were proposed by workers and businesses and solves practical issues that exist in the labor market.
Indicatively, the bill simplifies procedures (eliminates forms, accelerates and facilitates hiring for everyone), reducing bureaucracy, introduces regulations that strengthen workers and enhances Labor Inspection controls, in order to have more faithful compliance with labor legislation.
New labor bill: What now applies – The Ministry of Labor answers 16 crucial questions
The questions and answers follow:
1. In a nutshell, what does the new labor bill provide?
The new bill comes from the labor market, since many of its regulations were proposed by workers and businesses and solves practical issues that exist in the labor market. In summary, it simplifies procedures (eliminates forms, accelerates and facilitates hiring for everyone), reducing bureaucracy, introduces regulations that strengthen workers and enhances Labor Inspection controls, in order to have more faithful compliance with labor legislation.
2. How does the bill support workers in their daily lives?
The bill provides indicatively:
- Greater freedoms for workers in arranging working time, e.g. the possibility for a working parent to work 4 days a week and be with their child on the 5th day for the whole year and not just for six months, as applies today.
- Greater freedom in the request that the employee can submit for distribution of annual vacation leave.
- More women to be eligible for pregnancy and maternity benefits.
- Parental leave allowance to be tax-free, non-transferable and unseizable.
- Many regulations for further protection of health and safety at work (e.g. mandatory presence of a health and safety coordinator in technical projects, depending on their size, for the prevention of workplace accidents).
- The possibility to work in rotating work, if desired, in overtime, with remuneration increased by 40% (e.g. in 4-day weekly work).
- The possibility to work up to 13 hours per day (exceptionally) for one employer, with a 40% increase in remuneration.
- Training in first aid lessons (CPR, Heimlich).
- Extension of maternity leave to adoptive mothers.
- Explicit prohibition of salary reduction after the implementation of the Digital Work Card.
3. How does the bill facilitate businesses?
It provides:
- Great simplification of the hiring process.
- Fast-track fixed-term hiring for up to 2 days for urgent needs.
- Elimination of many forms, whose information is already submitted to the “ERGANI II” Information System.
- Further exemption from surcharges on insurance contributions for overtime, night work and holidays.
- Special application for employers (myErgani type).
- Merger of violence and harassment policies.
4. Does the new bill abolish the 8-hour workday and establish a 13-hour daily employment?
No. The eight-hour daily employment is an acquired right and remains in full force. In every European country, including ours, there is the possibility for overtime employment, after agreement between employee and business and under specific conditions.
Today, an employee has the possibility to work exceptionally up to 13 hours daily for two or more employers. With the bill, the possibility of 13-hour employment extends to employees who are employed by one employer, provided that rest limits and maximum weekly working hours are faithfully observed, as well as payment of legal overtime surcharges (plus 40%).
Moreover, with the new regulation, the employee benefits financially. Example: an employee who is employed by two employers and is paid 8 euros per hour, if employed 13 hours by two employers, will be paid with a daily wage of 104 euros. If employed for the corresponding hours by one employer only, they will receive 119 euros.
5. Can an employer force an employee to work 13 hours daily?
No. For an employee to work overtime (i.e. the 10th to 13th hour in a day) requires their consent.
6. Can the employer refuse to pay overtime, if the employee works beyond their scheduled hours?
No, they cannot. Anyone who works overtime is entitled to remuneration equal to the paid hourly wage, increased by 40%. This is also ensured by the implementation of the Digital Work Card, as if overtime is not declared, the additional hour of employment is considered illegal and a 120% surcharge is owed.
7. Can an employee work 13 hours daily all year round?
No, the maximum working time is 48 hours weekly in a 4-month reference period and the maximum overtime limit is 150 hours annually. Therefore, an employee can work 13 hours daily for up to 37.5 days per year.
8. Can an employer dismiss an employee by simply sending a written message (SMS)?
No. There is no such provision in the bill. Nothing changes at all in the existing institutional framework regarding dismissals.
9. What changes in annual vacation leave? Will the employer be able to refuse to grant it whenever the employee wishes to take it?
Until today, by law, leave had to be taken by the employee undivided in one period, while, upon the employee’s request, it was possible to fragment the leave time, however 2 weeks had to be taken consecutively.
With the new bill, the employee is given the possibility to request division of their leave into more time periods, if they wish. For example, they will be able to take their annual leave in parts over 4 different periods within the same year, if they wish something like that. The time period for taking leave is chosen in consultation with the employer.
10. I work in a rotating work system, 4 days a week. Why can’t I work overtime, if I want to?
With the new regulation, rotating employees will have the right to work beyond their eight hours, receiving the corresponding 40% surcharge for each hour of overtime employment, if they wish. For example, someone who works in a restaurant that operates Friday, Saturday and Sunday, will be able to supplement their income with overtime work, if they wish.
11. Does the employer have the right to reduce salary on the grounds of their professional sector’s inclusion in the Digital Work Card?
No. With the bill, salary reduction immediately after the implementation of the Digital Work Card is considered a unilateral harmful change and is prohibited.
12. Why can an employee work 4 days a week for only six months? What will they do for the remaining six months? How will they cover the need that led them to this choice?
Until today, the possibility of 4-day work (10 hours per day), in consultation with the employer, applies for six months. With the new bill, this possibility is given for the entire year. Every employee, without restriction, for example a parent with a minor child, will be able to work on a 4-day basis throughout the year, after consultation with the employer.
13. I am a working mother who worked for 2 different employers and was insured in two different funds. Despite the fact that I completed 200 stamps, I did not receive the pregnancy and maternity benefit.
With a regulation brought by the new bill, this specific distortion is corrected and henceforth a mother will receive pregnancy and maternity benefits, having completed 200 stamps, regardless of the number of funds she has been insured with and the employers by whom she has been employed. Additionally, parental leave allowance is secured as tax-free, non-transferable and unseizable, while the granting of the postnatal part of maternity leave is extended to adoptive mothers.
14. I am a working pensioner and with the increase in income from my salaried work I risk having the Pensioners’ Solidarity Contribution imposed on me.
The new bill includes a provision so that when a working pensioner is entitled to an increase in their pension from their work, the additional benefit does not lead to an increase in the Pensioners’ Solidarity Contribution rate.
15. With the recent exemption from surcharges on insurance contributions for overtime, night work and holidays, which extends to surcharges provided by Collective Labor Agreements, as well as surcharges granted voluntarily by the employer, are the revenues of insurance funds not at risk and consequently the adequacy of the country’s insurance system?
As evidenced by the data, exactly the opposite happens. In April, insurance fund revenues increased by 48% in one month, because many more businesses declared overtime and night employment, holidays and overwork. Correspondingly, workers’ earnings from overtime increased by 62%. This is a result of reducing the cost of contributions.
16. Do the changes you make at the individual labor law level not undermine future discussions for concluding Collective Labor Agreements?
They are two different things. Parallel to the reforms being made in individual labor law (i.e. the present bill), discussions are being conducted on collective labor law, focusing on encouraging the conclusion of Collective Labor Agreements.
Proof of the above are the favorable changes that the new bill brings in favor of workers and, at the same time, the increase in signing new Collective Labor Agreements (CLAs) that has been taking place recently (signing of hotel employees’ CLA, bank employees, signing of CLA for workers in the metal industry for the first time after 12 years, etc.), with terms more favorable than individual labor law (for example, the lowest salary is higher than the minimum wage).
Source: ANA-MPA
