Measures to combat the COVID-19 pandemic – Employment & Social Security Issues

Employment regulations of the Legislative Act dated 1 May 2020

The regulations of the Legislative Act dated 1 May 2020 (Official Government Gazette A 90/1.5.2020) are summarized as follows:

Affected businesses which have suspended the employment agreements of all or some of their employees, can extend the suspension of up to 60% of the agreements suspended, for a period up to 30 days and until 31 May 2020. Excess of the above percentage entails the obligation of the employer to pay the salaries of the employees in question. Businesses which will use the above measure are obliged not to reduce their personnel (by means of dismissals) during the time period of implementation of the measure in question and in any case until 31 May 2020, whereas any dismissals in breach of the above provisions are legally invalid. The same obligation (not to proceed with dismissals) as well as not to amend the type of agreements of their personnel applies for a 45 day period following the expiry of the suspension’s extension period.

The employment agreements of personnel of businesses which continue to not operate during May 2020 by virtue of a state order continue to be suspended during the period of suspension of the employers’ business operation.

Employees of the above two categories are eligible to collect financial support, which is calculated on the basis of the days of extension of the employment agreements’ suspension.

The specific details for the implementation of the provision in question will be determined by virtue of a Joint Ministerial Decision of the Ministers of Finance and Employment.

• Businesses which have suspended the employment agreements of all or some of their employees, can revoke the suspension of at least 40% of the suspended employees on the condition that the suspension has lasted for a period of 15 days at least.
  The agreements of employees whose suspension is revoked cannot be put again in suspension.
  In case the suspension is revoked, the employees are eligible to collect financial support on the basis of the days of suspension.
  The measure in question cannot be applied by businesses which continue to not operate in May 2020 on the basis of a state order.
• It is repeated that businesses which do not operate by virtue of a state order and affected businesses on the basis of their Business Activities Code (ΚΑΔ) can temporarily revoke the suspension of employment agreements for extraordinary, urgent and inflexible needs which cannot be postponed. Following the expiry of the suspension temporary revocation, the agreement continues to be suspended until the total period of suspension is completed. Salaries corresponding to the period of the suspension’s revocation are paid by the employer.
  The temporary revocation of the suspension must be notified in advance by means of a special form filed with the ERGANI platform.
• Businesses whose operations had been suspended by virtue of a state order or were significantly affected on the basis of their Business Activity Code (ΚΑΔ) adjust the employees’ working hours on the basis of their working hours on the condition that the type of the employees’ agreement is not amended.
• The procedures for the determination of the new minimum salary and wages are set, which are expected to be completed within January 2021.
• The regulatory terms of Collective Labour Agreements and Arbitration Decisions whose three month extension period in accordance with the applicable legislation expired during the period from 29 February 2020 until (and including) 30 April 2020, continue to apply until (and including) 30 June 2020.

Special categories occupation and special purpose indemnity

Circular number 17078/505/30.4.2020 of the Ministry of Employment resolves practical issues which impeded certain categories of employees to collect the special purpose indemnity and sets the procedure to be followed (with the ERGANI platform and supportemployees.services.gov.gr) for the collection of the indemnity in question (during the period from 7 May 2020 until (and including) 14 May 2020). The most important cases of the Circular relate to:

• Transfer of business in accordance with the Presidential Decree 178/2002, where the employee works for the successor employer and his employment agreement with the latter has been suspended,
• Transfer of personnel, where the employment agreement of the transferred employee to the new employer has been suspended,
• Genuine lending, where the employment agreement of the employee with the second employer has been suspended,
• Occupation through a Temporary Employment Agency (E.Π.Α.), where the employee is working for the indirect employer in accordance with the applicable legislation and the employment agreement has been suspended, and
• Employment retention, where the employee during the retention period is employed by virtue of a dependent employment agreement by another employer who suspended his employment agreement.

Determination of the cost of the social security contributions due in case of suspension of employment agreements and funding procedure

By virtue of the Joint Decision of the Ministers of Finance and Employment (which has not yet been published in the Official Government Gazette and thus not in force until then) sets the procedure for the determination of the cost of the social security contributions due in case of suspension of employment agreements in accordance with the provisions of the Joint Ministerial Decision number 12998/232. More precisely, the Decision provides:

• that the social security contributions are determined on the basis of the Analytic Periodic Returns (Α.Π.Δ.) filed for the corresponding period in accordance with the decision’s terms.
• that for the employment period March 2020, the date of commencement of suspension of employment agreements is the one declared in the corresponding Analytic Period Return, which cannot be earlier than 15 March 2020 for businesses whose operation has been suspended by virtue of a state order or earlier than 21 Μarch 2020 for significantly affected businesses on the basis of their Business Activity Code.
• that the Analytic Periodic Return for employees in question of March 2020 as well as any supplementary Analytic Periodic Returns of the same period must be filed until (and including) 15 May 2020.

ERGANI platform and Special Purpose Forms

• Form 4.3: Table of Safe Operation Personnel Method of Organisation of Work – Special Purpose Form of article 9, Legislative Act (68/A’/20.3.2020) with maintenance of employment positions obligation
• Form 4.4: Table of Transfer of Personnel between businesses of the same Group – Special Purpose Form of article 10, Legislative Act (68/A’/20.3.2020) with maintenance of employment positions obligation and invalidity of dismissals clause

are now operational in the ERGANI platform.

Employment Authorities’ Audits

In accordance with recent statements of the Minister of Employment, the gradual commencement of business activities will be accompanied by intensive audits of the employment authorities to assess businesses’ compliance with the measures for the employees’ health and safety protection (relating mainly to the use of protective mask, where required, and the ratio of the business’ surface with the persons therein). The sanctions, in case violations are assessed, are administrative penalty or/and suspension of operation, with the exact amount of penalty and duration of suspension of operation depending on the business’ surface and recurrence.