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New supportive measures against the COVID-19 pandemic for December 2020

Wednesday, December 9, 2020

Government spokesman, Mr. Stelios Petsas, proceeded to numerus announcements during the press briefing on Monday, December 7, regarding the Government’s strategic plan which will apply across the Greek State during the upcoming holiday season. Said announcements are part of the extension of financial support measures to ease the economic impact of the pandemic for December 2020. Furthermore, a new Joint Ministerial Decision (Government Gazette B’ 5391 - 07.12.2020) was published on 07.12.2020 regarding the suspension of employment contracts of employees working in the private sector for December 2020 and the provision of a State aid for the same month.

Some of the most important measures have as follows:

1) Suspension of employment contracts of private sector Companies which are severely affected by the pandemic for December 2020.

Employment contracts of employees employed by companies across the country, which are severely affected by the pandemic of COVID-19, according to the list of Activity Code Numbers (ΚΑΔ) of December 2020, can be temporarily suspended for a maximum period of 30 days and in any case no longer than 31.12.2020. This measure applies only for employees who have been hired until 04.11.2020.

The above employers are also able to suspend employment contracts gradually and for a different number of employees, even up to 100% of them, by submitting a solemn declaration of the company through the ERGANI information system.

Termination of the suspended employment contracts is strictly prohibited and shall that happen, said termination is void. Following the end of the suspension period, employers are obliged to maintain the same number of employees and with the same type of employment contract, for a period equal to the period of suspension. However, these measure does not apply to cases where that is objectively impossible, in cases of companies having a specific operating time, for those who leave their employment voluntarily or due to retirement, as well as for fixed-term contract employees whose employment contract expires during the above period.

Severely affected employers may revoke the suspension of the employment contracts of these employees. They can also re-suspend their employment contracts regardless of whether their suspension has been revoked. In any case, the above are valid until 31.12.2020.

Severely affected employers may keep using the SYN-ERGASIA mechanism. Also, for those employees who are not under suspension, employers must have them working remotely to maximum possible extent.

The above employees are entitled to a State aid of €534 per month corresponding to 30 days, proportional to the period of the suspension of their employment contract. The State aid is tax-free, cannot be confiscated by the State or third parties, is not subject to any withholding, fee or contribution, cannot be offset with debts to the tax authorities, municipalities, regions, the State in general, insurance funds or credit institutions.

2) Suspension of employment contracts of private sector Companies which are shut down by State order for December 2020

Companies of the private sector throughout the country, whose operation is suspended by a State order, based on their Activity Code Number (ΚΑΔ), obligatorily suspend the employment contracts of their employees who have been hired until 04.11.2020, or obligatorily extend the suspension of the employees’ contracts, which have already been suspended, for December 2020.

Fixed term employment contracts who expire after the lockdown are place in obligatory suspension. After the lockdown ends, these agreements continue in force for the agreed time.  However, these obligation does not apply to cases where that is objectively impossible, e.g. in cases of companies having a specific operation time.

The above employers may temporarily recall the suspension of employment contracts of their employees in order to cover extraordinary, temporary, urgent and non-flexible needs of the company. They may also keep in working status employees working in sectors that are allowed to operate (e.g. e-commerce) and who were not suspended.

Termination of the suspended employment contracts is strictly prohibited and shall that happen, said termination is void.

The above employees are entitled to a State aid of €534 per month corresponding to 30 days, proportional to the period of the suspension of their employment contract. The State aid is tax-free, cannot be confiscated by the State or third parties, is not subject to any withholding, fee or contribution, cannot be offset with debts to the tax authorities, municipalities, regions, the State in general, insurance funds or credit institutions.

3) Suspension of instalment payments

Companies which are shut down by a State order for December, have the right to suspend the installment payment of settled tax and insurance debts, due in December, and their repayment is postponed to corresponding installments at the end of the current settlement.

Employees whose employment contract is suspended, have the right to suspend the installment payment of settled tax debts, due in December, and their repayment is postponed to corresponding installments at the end of the current settlement.

Last, the suspension of bank loan installments payment is maintained until the end of the year, based on the list of Activity Code Number (ΚΑΔ).

4) Extension of all unemployment benefits ending on September, October, November and December by two months

5) Extension of compulsory remote working regime

Compulsory remote working in the private and public sector is extended across the country to at least 50% of the personnel, with the exception of activities where remote working objectively cannot apply. Moreover, the measure of flexibility in arrivals and departures of employees at their workplace in the private sector is extended.

6) Mandatory reduction of rent by 40%

All severely affected businesses, according to their Activity Code Number (ΚΑΔ), are entitled to a mandatory reduction of rent by 40% on their commercial real estate for December.

Same as above applies to the primary residence of employees whose employment agreements are suspended, as well as to the student residence of their dependent members.

Regarding the landlords who rent their real estate to the above companies and employees, for December as well, 50% of their loss will be compensated and credited to their bank accounts.

7) Measures until the 7th of January 2021

According to the Government Spokesman’s announcements, until January 7, 2020 and 6 am schools, restaurants/cafeterias, the sector of entertainment, Courts (with the exceptions indicated in the Joint Ministerial Decision of 05.12.2020), sport events and activities (with some exceptions) and ski resorts remain closed. Last, interregional travel is also prohibited for the same period as above.