Termination of an indefinite contract!

From 1/1/2022, any distinction between employees and craftsmen regarding the notice period and the termination of employment contracts is abolished and any provision that governs the termination of the contract or employment relationship of employees, applies to craftsmen.

The employment contract for an indefinite period of time is terminated at any time by termination either on the part of the employer (dismissal) or on the part of the employee (resignation / voluntary departure).

The termination of the employment contract of indefinite duration by the employer is divided into regular and naughty.

Regular termination results in the termination of the contract after the expiration of a certain period and applies only to employees.

In the case of regular termination:

  • the duration of the pre-employment period is scaled according to the previous service of the employee
  • the severance pay due shall be reduced to ½ that which would have been due if the notice had not preceded.

With the provision of art. 65 of Law 4808/2021, provides that with the notification of the termination of the employment contract with foresight, the employer may release the employee from the obligation to provide the work, in part or in full.

During this period, the employee’s remuneration is paid in full by the complainant employer until the expiration of the notice period, while the employee can take up employment with another employer without adverse consequences for him as a result of the termination, the amount of compensation due the expiration of the notice period and the remuneration due by the complainant employer during the notice period.

The erratic termination brings about the termination of the contract immediately, ie from the moment the document of the termination is served on the employee.

Naughty complaint is the only form of complaint that can be applied to artisans. In contrast to the regular complaint, the employer owes the dismissed person the full (and not half) compensation.

The valid exercise of the right to terminate the employment contract for an indefinite period of time requires:

  • compliance with a press release
  • the payment of legal compensation
  • the registration of the employee in the observed payroll of the insurance company or the insurance of the dismissed.

Compensation payment:

The payment of the legal compensation must be made simultaneously with the termination of the contract, except in the case of the regular termination, where its payment is made at the end of the notice period, otherwise the termination is considered invalid.

The compensation must be paid in full and partial or incomplete payment is not allowed. With the no. 26034/695/2019 Joint Ministerial Decision (Government Gazette B ‘2362) introduces the mandatory payment by employers of compensation for dismissal of employees in payment accounts of eligible employees.

Exceptionally, in the case of employees who are employees and if the severance pay due is greater than two months’ salary, then the partial payment of compensation is allowed.

In particular, the employer is obliged to pay upon dismissal part of the compensation corresponding to two months ‘salary, while the remaining amount of compensation is paid in bi-monthly installments, each of which can not be less than two months’ salary.

The severance pay is calculated based on:

  • the status of the dismissed as a craftsman or employee
  • the regular remuneration received by the employee on a full-time basis in the last month before the termination
  • the time of service of the dismissed to the specific employer.