Law 5316/2026 has resolved a long-standing area of uncertainty by expressly extending statutory paid annual leave and the corresponding leave allowance to managerial and executive employees.
The amendment has important implications for employers, particularly where existing employment terms or remuneration arrangements treat managerial staff differently from other employees.
Key areas requiring review include:
- Contractual provisions excluding managerial employees from paid annual leave.
- Arrangements treating the statutory leave allowance as included in, or offset against, higher remuneration.
- Payroll, record-keeping and ERGANI II procedures concerning annual leave and leave allowance.
- The classification of employees as managerial or executive staff based on their actual duties and responsibilities.
- The amendment does not otherwise alter the special legal regime applicable to managerial employees, including the exemptions that may apply in relation to working time, overtime and weekly rest periods.
As the new provisions have been in force since 6 July 2026, companies should ensure that their employment contracts, remuneration practices and internal procedures are aligned with the amended framework.
Our Employment Law team has prepared a concise analysis of the new rules, and the practical steps employers should consider.
