“SYN-ERGASIA” employment support mechanism and other provisions
The Law 4690/2020 (Government Gazette A’ 104), which ratifies the Legislative Decrees dated 13.04.2020 (Government Gazette A’ 84) and 01.05.2020 (Government Gazette A’ 90) and introduces new provisions regarding the labor law measures for COVID-19, was published on 31.05.2020.
The main points of special interest included in the respective law are :
I. State aid mechanism for the support of employment
1. The mechanism for the support of employment in the form of financial support of employment, shall remain in force for the time period from 15.06.2020 until 15.10.2020.
2. Eligible to participate in the mechanism are all companies, of a continuous or seasonal operation, regardless of their Activity Code Number (ΚΑΔ), that:
a) are obliged to submit a periodic VAT return and have a reduction of at least 20% of the VAT turnover cycle (code 312 of the periodic VAT return).
b) are not required to submit a VAT return or are exempted from VAT and have a reduction of at least 20% of their gross income.
3. Companies participating in the mechanism, may proceed with the reduction of the weekly working hours of part or all of their personnel, up to 50%, according to their business needs.
4. The mechanism applies exclusively to employees who, on the date of publication of the Law i.e. on 31.05.2020, were employed under a full-time dependent employment agreement.
5. Employees of the companies participating in the mechanism, shall receive state financial support for short-term employment, which shall amount to a percentage of 60% of their net salary, corresponding to the time period during which they do not provide work. In the event that the net salary of the employee (i.e. the total amount of the part of the salary paid by the employer and the part of the salary paid by the State), after the above adjustment, is less than the net statutory minimum salary or daily wage, the difference shall be covered by the state budget.
6. In the context of the mechanism, the proportion of the annual leave allowance and the Christmas allowance for the year 2020 corresponding to the financial support, which amounts to 60% of the reduced salary of the employees, shall be covered by the Greek State in accordance to provisions of the applicable labor legislation.
7. The social security contributions corresponding to the amount of financial support, shall not be covered by the mechanism and the employers are obliged to fully cover it. The respective social security contributions shall be calculated on the basis of the initial agreed salary of the employees. The manner, procedure, terms and preconditions of the financial support, as well as any other detail necessary for the implementation of the mechanism, shall be determined by virtue of a Joint Ministerial Decision by the Ministers of Finance, Development and Investments and Employment and Social Security.
8. Companies that make use of the mechanism are obliged not to proceed with the termination of the employees who are included in the mechanism and, in the event of such a termination, it shall be considered null and void.
In addition, they are obliged to retain the same the initially agreed salaries of the employees that are included in the support mechanism, for the time period that each of them is covered by it.
II. Abolition of the safe operation personnel measure
According to the article 9 of the Legislative Decree 20.03.2020 (Government Gazette A '68) in the context of the extraordinary and temporary measures in the labor market to address and limit COVID-19, it was provided that the employer may, by his decision, to appoint a safe operation system of the company according to which each employee may be employed for at least two (2) weeks per month. As of 15.06.2020 the relevant provision is abolished.
III. Reduced working hours measure for parents
As an exception to the provisions of the labor legislation regarding working hours, parent employees may, until the end of the school year 2019-2020, work with reduced up to 25%, daily agreed working hours, without a corresponding reduction of their salary, following a respective application by the employee and only by virtue of an agreement with the employer. If they agree with the employer on a reduced daily working schedule, they may provide work after their working hours on another working days, without being paid in that case with an additional remuneration for overwork and overtime work. The above mentioned measure of reduced working hours may be granted independently or in addition to the special purpose leave of article 4 par. 3 of the Legislative Decree dated 11.03.2020 (Government Gazette A’ 55/2020). The specific terms as well as any further detail necessary for the implementation of the above mentioned measure, may be determined by virtue of a Decision by the Minister of Employment and Social Security,
IV. Notification of overtime/ overwork/ amendments of the working hours to ERGANI
The Joint Ministerial Decision No. 20788/610/2020 (Government Gazette Β' 2083), provides that: The suspension of the employer’s obligation to notify to the “ERGANI” platform of the Ministry of Employment and Social Security, any change or amendment of the working hours or the organization of the working time of employees, as well as overwork and legal overtime work, prior to their actualization, by virtue of article 4 par. 1 a’ of the Legislative Decree dated 11.03.2020 (Government Gazette A’ 55), is extended until 15.06.2020 (inclusive).
From 16.06.2020 onwards, the obligation of the employer to notify to the “ERGANI” platform any change or amendment of the working hours or working schedule of employees, at the latest until the day of the amendment or change of the working hours or working schedule and in any case prior to the provision of work by the employees, as well as overwork and legal overtime, prior to its performance is restored.
V. Unilateral imposition of remote work system
The Joint Ministerial Decision No. 20788/610/2020 (Government Gazette Β' 2083), provides that: The option of the employer to unilaterally impose a system of remote work (teleworking), by virtue of the article 4 par. 2 of the Legislative Decree dated 11.03.2020, is extended until 30.06.2020 (inclusive).
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