Ending an employment relationship in Greece is a structured legal process, and getting it wrong can be costly. Greek labour law imposes specific obligations on employers around notice, severance, and government reporting, and these obligations vary depending on how long the employee has been with you. Whether you’re letting someone go for performance reasons or cutting headcount, this guide covers what you need to know to stay compliant.
Legal framework
Greek employment terminations are governed primarily by Law 2112/1920 and Law 3198/1955, as amended. These laws cover the full lifecycle of dismissal, from the minimum procedural requirements through to severance entitlements.
Two rules apply to every termination, regardless of role or service length. First, the dismissal must be in writing. Verbal termination has no legal effect in Greece, and an employer who relies on it will be treated as though no dismissal occurred. Second, the employer must notify the ERGANI information system within four working days of the termination date. ERGANI is Greece’s electronic labour registry, and late or missing notifications can attract penalties.
Probation periods
For open-ended (indefinite-term) contracts, the first six months of employment are treated as a probationary period. During this window, either party can end the relationship without notice and without any obligation to pay severance. Once the six-month mark passes, the full protections under Greek labour law kick in.
Notice periods
Greek law sets minimum notice periods for employer-initiated terminations, but it also requires resigning employees to give notice once they’ve been in post for long enough. The two scales are different.
Employer notice by service length
The notice period an employer must give depends on how long the employee has been with the company:
| Service length | Notice period |
|---|---|
| 1–2 years | 1 month |
| 2–5 years | 2 months |
| 5–10 years | 3 months |
| 10+ years | 4 months |
If you’d rather not keep the employee working through their notice period, you can make a payment in lieu of notice instead. That payment must equal the salary the employee would have earned during the notice window.
Employee notice on resignation
When an employee resigns, they’re required to give notice too, though the periods are shorter than those that apply to employers:
| Service length | Notice required |
|---|---|
| Under 1 year | None |
| 1–2 years | 15 days |
| 2–5 years | 1 month |
| 5–10 years | 1 month 15 days |
| 10+ years | 2 months |
Severance pay
When an employer terminates an employee without giving full notice, severance pay becomes due. The amount depends on the employee’s length of service and is calculated on their regular monthly salary, not including bonuses or irregular payments.
The calculation table
| Service length | Severance |
|---|---|
| Less than 1 year | None |
| 1–4 years | 2 months’ salary |
| 4–6 years | 3 months’ salary |
| 6–8 years | 4 months’ salary |
| 8–10 years | 5 months’ salary |
| 10 years | 6 months’ salary |
| 11–15 years | 7–11 months’ salary |
| 16+ years | Up to 12 months’ salary |
The 50% reduction when notice is given
If the employer serves the employee with the full statutory notice period, the severance entitlement is reduced by 50%. So an employee with three years of service who receives their full two months of notice would be entitled to one month’s salary in severance rather than two. This reduction only applies when notice is given in full. Partial notice or payment in lieu of notice doesn’t trigger the reduction.
Protected categories
Certain employees have enhanced protection against dismissal under Greek law. Pregnant employees and those on maternity leave can’t be dismissed, and any attempt to do so is likely to be treated as void. These protections exist independently of service length, meaning they apply from the start of employment.
If you’re considering a termination that involves an employee in a protected category, you should take legal advice before proceeding. The consequences of getting this wrong are significant.
Ergani termination reporting
Greece’s ERGANI system is the electronic platform employers use to report employment changes to the state, and terminations are no exception. When you end an employment relationship, you must submit a termination notification through ERGANI within four working days of the effective termination date.
Missing this deadline, or failing to file at all, exposes the employer to administrative fines. It’s a straightforward filing requirement, but it’s easy to overlook if you don’t have a local HR process in place.
Managing terminations in greece through an Employer of Record
If you don’t have a legal entity in Greece, you can’t employ someone there directly. An Employer of Record (EOR) solves that problem by acting as the legal employer on your behalf. The EOR handles the employment contract, payroll, statutory benefits, and, critically, the full termination process, including notice calculations, severance, and ERGANI filings.
When a termination comes up, an EOR ensures every step is handled in line with Greek law. That includes confirming the correct notice period for the employee’s service length, calculating the right severance amount, providing written notice, and submitting the ERGANI notification on time. For companies with one or two employees in Greece, this removes the need to build local HR expertise or retain a Greek labour lawyer for every offboarding.
If you’re evaluating options, it’s worth comparing EOR services to find a provider with strong local coverage in Southern Europe.
Book a demo to see how RemotePass handles compliant terminations in Greece.
Frequently asked questions
Do I have to pay severance if I give full notice?
Yes, but the amount is halved. Serving the full statutory notice period reduces the severance entitlement by 50%. It doesn’t eliminate severance entirely unless the employee has been with you for less than one year.
Can I dismiss an employee verbally in greece?
No. Greek law requires all dismissals to be in writing. A verbal dismissal has no legal effect and the employer will be treated as though the termination never happened.
What happens if I miss the ergani filing deadline?
Missing the four-working-day deadline for ERGANI notification can result in administrative fines. The filing should be treated as a required step in the termination process, not an optional follow-up.
Are there different rules for dismissing multiple employees at once?
Yes. Collective redundancies, where you’re letting go of a significant number of employees simultaneously, are subject to a separate set of rules and consultation requirements. If you’re considering a collective redundancy in Greece, you should seek local legal advice before issuing any notices.
