Key Employment Law Reforms: Flexibility, Simplification, and Protection for Workers and Employers

Wednesday, 06 August 2025

The recent Bill of the Ministry of Labour and Social Security, titled “Fair Work for Everyone-Legislative Simplification – Support for the Employees – Protection in Practice,” aims to eliminate paper-based procedures, expedite the hiring process, reduce bureaucracy, and enhance the enforcement role of the Hellenic Labour Inspectorate.

More specifically, pursuant to this Bill, employees:

  • Are granted more flexibility in arranging their work time based on their needs and schedules. For example, from now on, a working parent can work four days a week and stay home to look after their child on the fifth day of the week, and this arrangement can continue throughout the entire year, instead of being limited to the current 6-month period.
  • May spread their annual paid leave in multiple periods, following notification to the employer.
  • May work overtime, with their explicit consent, and receive a 40% increase in remuneration, or work up to 13 hours per day (in exceptional cases) for a single employer, also with a 40% pay increase.

Another major change is the expansion of maternity leave, including pregnancy and maternity benefits, to foster mothers.

Regarding the digital card system, the Bill provides:

  • An explicit prohibition of wage reductions following the implementation of the digital card system.
  • Up to 120 minutes flexibility in start time, if agreed between the parties.
  • The recognition of preparation time (30’ in industry, 10’ in other sectors) as time worked in addition to working hours.
  • Allowance for three one-way (orphan) punches per month without penalty.

The Bill also introduces measures to support employers, including:

  • Simplifying the hiring process.
  • Developing a dedicated digital application for employers (similar to myErgani).
  • Further exemptions from additional social security contributions on supplementary pay for overtime, extended hours, night work, and public holiday shifts.

The bill is currently under parliamentary review and targeted for a vote in September 2025.

For further information on how these new requirements may affect your business or to discuss your compliance strategy, please contact our Employment Law team.

 

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