Employer of Record - Greece Guide

When using an Employer of Record (EOR) in Greece, the EOR handles the filing and payment of employees' taxes and social insurance contributions. This includes the calculation, withholding, and remittance of income tax, as well as contributions to social security schemes such as the National Organization for Healthcare Services Provision (EOPYY) and the Unified Social Security Fund (EFKA). The EOR ensures compliance with Greek tax laws and social insurance regulations, thereby relieving the client company of these administrative burdens and reducing the risk of non-compliance penalties.

Setting up a company in Greece involves several steps and can be a time-consuming process. Here is a detailed timeline for establishing a business in Greece:

1. Choosing the Legal Form and Name of the Company (1-2 weeks):

   • Decide on the type of legal entity (e.g., Limited Liability Company, Corporation, etc.).
   • Check the availability of the company name and reserve it with the General Commercial Registry (GEMI).

2. Drafting the Articles of Association (1-2 weeks):

   • Prepare the Articles of Association, which outline the company's structure, purpose, and operational guidelines.
   • This document must be drafted in Greek and notarized.

3. Opening a Bank Account (1-2 weeks):

   • Open a corporate bank account in Greece.
   • Deposit the initial share capital required for the type of company being established.

4. Registering with the General Commercial Registry (GEMI) (1-2 weeks):

   • Submit the Articles of Association and other required documents to GEMI.
   • GEMI will issue a registration number and publish the company’s details in the Government Gazette.

5. Obtaining a Tax Identification Number (TIN) (1-2 weeks):

   • Register the company with the local tax office to obtain a TIN.
   • This step involves submitting various documents, including the Articles of Association and proof of the company’s registration with GEMI.

6. Registering for Social Security (1-2 weeks):

   • Register the company with the Social Insurance Institute (IKA) to cover employee social security contributions.
   • This step is necessary for hiring employees and ensuring compliance with Greek labor laws.

7. Obtaining Necessary Licenses and Permits (Variable, 2-8 weeks):

   • Depending on the nature of the business, additional licenses or permits may be required.
   • The timeline for obtaining these can vary significantly based on the industry and specific requirements.

8. Registering with the Chamber of Commerce (1-2 weeks):

   • Register the company with the local Chamber of Commerce.
   • This step is often required for certain types of businesses and provides additional networking and support opportunities.

9. Hiring Employees and Setting Up Payroll (1-2 weeks):

   • Once the company is registered and compliant with tax and social security regulations, you can begin hiring employees.
   • Set up payroll systems to ensure timely and accurate payment of wages and benefits.

Total Estimated Timeline: 8-16 weeks

The entire process can take approximately 2 to 4 months, depending on the complexity of the business and the efficiency of the involved authorities. Using an Employer of Record (EOR) service like Rivermate can significantly streamline this process by handling many of these administrative tasks, ensuring compliance with local laws, and allowing you to focus on your core business activities.

Yes, it is possible to hire independent contractors in Greece. However, there are several important considerations and legal requirements to keep in mind:

1. Legal Classification: Independent contractors in Greece must be correctly classified to avoid misclassification issues. Misclassifying an employee as an independent contractor can lead to significant legal and financial penalties. Contractors should operate as self-employed individuals or through their own legal entities.

2. Contractual Agreement: A clear and comprehensive contractual agreement is essential. This contract should outline the scope of work, payment terms, duration, and other relevant conditions. It should also specify that the contractor is not an employee and is responsible for their own taxes and social security contributions.

3. Taxation: Independent contractors in Greece are responsible for managing their own tax obligations. They must register with the tax authorities and submit regular tax returns. Employers should ensure that contractors provide valid invoices for their services.

4. Social Security Contributions: Contractors must also handle their own social security contributions. They need to register with the relevant social security fund and make the necessary payments.

5. Intellectual Property: Contracts should address the ownership of intellectual property created during the engagement. Typically, the agreement should specify whether the contractor retains ownership or transfers it to the hiring company.

6. Compliance with Local Laws: Employers must ensure that their engagement with independent contractors complies with Greek labor laws and regulations. This includes adhering to any sector-specific requirements and ensuring that the contractor's work does not resemble that of a regular employee.

7. Dispute Resolution: The contract should include provisions for dispute resolution, specifying the legal jurisdiction and methods for resolving any conflicts that may arise.

Using an Employer of Record (EOR) service like Rivermate can simplify the process of hiring independent contractors in Greece. An EOR can help ensure compliance with local laws, manage payroll and tax obligations, and provide legal and administrative support. This allows companies to focus on their core business activities while mitigating the risks associated with hiring independent contractors.

HR compliance in Greece refers to the adherence to the country's labor laws, regulations, and standards that govern employment practices. This includes a wide range of legal requirements such as employment contracts, working hours, wages, social security contributions, health and safety regulations, anti-discrimination laws, and termination procedures. Ensuring HR compliance is crucial for several reasons:

1. Legal Protection: Compliance with Greek labor laws protects companies from legal disputes and potential lawsuits. Non-compliance can result in significant fines, penalties, and legal costs, which can be detrimental to a business's financial health and reputation.

2. Employee Rights: Greek labor laws are designed to protect the rights of employees, ensuring fair treatment, safe working conditions, and equitable compensation. Compliance helps in fostering a positive work environment and maintaining high employee morale and productivity.

3. Reputation Management: Companies that adhere to HR compliance standards are viewed more favorably by employees, customers, and the public. This can enhance the company's reputation and make it a more attractive place to work, which is crucial for talent acquisition and retention.

4. Operational Efficiency: By following established HR compliance guidelines, companies can streamline their HR processes, reduce administrative burdens, and avoid the complexities associated with non-compliance. This allows businesses to focus more on their core operations and strategic goals.

5. Risk Mitigation: Compliance helps in identifying and mitigating risks related to employment practices. This includes avoiding issues such as wrongful termination, discrimination claims, and workplace safety violations, which can have severe legal and financial repercussions.

6. Cultural Adaptation: Understanding and complying with local labor laws is essential for multinational companies operating in Greece. It ensures that the company respects local customs and practices, which is vital for successful integration into the Greek market.

Using an Employer of Record (EOR) service like Rivermate can significantly simplify HR compliance in Greece. An EOR takes on the responsibility of ensuring that all employment practices adhere to local laws and regulations. This includes managing payroll, benefits, taxes, and other HR functions, allowing companies to focus on their core business activities without worrying about compliance issues. Rivermate's expertise in Greek labor laws ensures that businesses can operate smoothly and efficiently while minimizing the risk of non-compliance.

Employing someone in Greece involves several costs that employers need to consider. These costs can be broadly categorized into direct compensation, social security contributions, and other statutory obligations. Here is a detailed breakdown:

1. Gross Salary: This is the primary cost and includes the agreed-upon salary before any deductions. The gross salary varies depending on the role, industry, and experience of the employee.

2. Social Security Contributions: Both employers and employees are required to make contributions to Greece's social security system. As of the latest regulations:

   • Employer Contributions: Approximately 24.81% of the employee's gross salary.
   • Employee Contributions: Approximately 15.33% of their gross salary, which is deducted from their pay.

3. Health Insurance: Contributions to the national health insurance scheme are included in the social security contributions. Employers must ensure that their employees are covered under the national health system.

4. Holiday Pay: Greek labor law mandates that employees are entitled to paid annual leave. The amount of leave depends on the length of service, but typically it ranges from 20 to 24 days per year. Employers must also pay a holiday bonus, which is essentially an additional half-month's salary paid in two installments (Christmas and Easter).

5. Severance Pay: In the event of termination, employers may be required to provide severance pay. The amount depends on the length of service and the terms of the employment contract. For example, an employee with one year of service is entitled to one month's salary, while an employee with ten years of service is entitled to two months' salary.

6. Training and Development: Employers may need to invest in training and development programs to ensure their employees are up-to-date with the latest skills and knowledge relevant to their roles.

7. Workplace Safety and Health Compliance: Employers must comply with workplace safety and health regulations, which may involve costs related to ensuring a safe working environment, conducting regular safety training, and providing necessary safety equipment.

8. Administrative Costs: Managing payroll, tax filings, and compliance with local labor laws can incur administrative costs. This includes the cost of HR personnel or outsourcing these functions to a third-party provider.

9. Other Benefits: Depending on the company policy and industry standards, employers might offer additional benefits such as meal vouchers, transportation allowances, private health insurance, and pension plans.

Using an Employer of Record (EOR) like Rivermate can help manage these costs effectively. An EOR handles all aspects of employment, including payroll, tax compliance, and benefits administration, ensuring that the employer remains compliant with Greek labor laws while reducing the administrative burden and potential risks associated with direct employment.

When a company uses an Employer of Record (EOR) service like Rivermate in Greece, the EOR assumes many of the legal responsibilities associated with employment. Here are the key legal responsibilities that the EOR handles on behalf of the company:

1. Employment Contracts: The EOR is responsible for drafting and maintaining compliant employment contracts that adhere to Greek labor laws. This includes ensuring that contracts are in Greek and meet all statutory requirements.

2. Payroll and Tax Compliance: The EOR manages payroll processing, ensuring that employees are paid accurately and on time. They also handle the calculation and withholding of income taxes, social security contributions, and other mandatory deductions, ensuring compliance with Greek tax regulations.

3. Social Security and Benefits: The EOR registers employees with the Greek social security system (EFKA) and ensures that all contributions are made correctly. They also manage statutory benefits such as health insurance, pensions, and other social security benefits.

4. Labor Law Compliance: The EOR ensures that all employment practices comply with Greek labor laws, including working hours, overtime, minimum wage, leave entitlements, and termination procedures. They stay updated on any changes in legislation to ensure ongoing compliance.

5. Employee Onboarding and Offboarding: The EOR handles the entire process of onboarding new employees, including necessary documentation and registrations. They also manage the offboarding process, ensuring that terminations are conducted in accordance with Greek labor laws and that all final payments and entitlements are settled.

6. Workplace Safety and Health Regulations: The EOR ensures that the workplace complies with Greek occupational health and safety regulations. This includes providing necessary training and maintaining records of compliance.

7. Dispute Resolution and Legal Representation: In the event of employment disputes or legal issues, the EOR provides support and representation. They handle grievances, disciplinary actions, and any legal proceedings related to employment matters.

8. Record Keeping and Reporting: The EOR maintains accurate records of employment, payroll, and compliance documentation. They also handle any required reporting to Greek authorities, such as tax filings and social security reports.

By using an EOR like Rivermate in Greece, companies can mitigate the risks associated with non-compliance and focus on their core business activities. The EOR takes on the complex and time-consuming tasks of managing local employment laws and regulations, providing peace of mind and operational efficiency.

In Greece, employers have several options for hiring workers, each with its own set of legal, administrative, and financial considerations. Here are the primary options available:

1. Direct Employment:

   • Permanent Contracts: These are open-ended contracts with no fixed termination date. They offer job security to employees and typically include benefits such as social security, health insurance, and paid leave.
   • Fixed-Term Contracts: These contracts are for a specific duration and are often used for temporary projects or seasonal work. They must comply with Greek labor laws regarding maximum duration and renewal limits.
   • Part-Time Contracts: These contracts are for employees who work fewer hours than full-time employees. They must include proportional benefits and comply with minimum wage regulations.

2. Temporary Employment Agencies (TEAs):

   • Employers can hire workers through TEAs, which provide temporary staff for short-term needs. The agency handles the administrative and legal responsibilities, while the employer supervises the worker's day-to-day activities.

3. Freelancers and Independent Contractors:

   • Hiring freelancers or independent contractors is an option for project-based work or specialized tasks. This arrangement requires careful consideration of the legal distinction between employees and contractors to avoid misclassification issues.

4. Outsourcing:

   • Employers can outsource specific functions or projects to third-party companies. This can be a cost-effective solution for non-core activities, but it requires clear contracts and management oversight to ensure quality and compliance.

5. Employer of Record (EOR) Services:

   • An EOR, like Rivermate, can be an excellent option for hiring in Greece, especially for foreign companies or those without a legal entity in the country. The EOR acts as the legal employer, handling all employment-related responsibilities, including payroll, tax compliance, benefits administration, and adherence to local labor laws. This allows the client company to focus on managing the employee's work and performance without the administrative burden.

Benefits of Using an Employer of Record in Greece:

• Compliance: An EOR ensures full compliance with Greek labor laws, including employment contracts, tax regulations, social security contributions, and employee rights. This reduces the risk of legal issues and penalties.
• Cost-Effective: Setting up a legal entity in Greece can be costly and time-consuming. An EOR eliminates the need for this, providing a more cost-effective solution for hiring local talent.
• Speed and Efficiency: An EOR can expedite the hiring process, allowing companies to onboard employees quickly and efficiently. This is particularly beneficial for urgent projects or market entry.
• Local Expertise: EORs have in-depth knowledge of the local labor market and employment practices, providing valuable insights and support to ensure smooth operations.
• Focus on Core Business: By outsourcing employment administration to an EOR, companies can focus on their core business activities and strategic goals, rather than getting bogged down in HR and compliance tasks.

In summary, while there are multiple options for hiring workers in Greece, using an Employer of Record like Rivermate offers significant advantages in terms of compliance, cost savings, efficiency, and local expertise. This makes it an attractive option for companies looking to expand their workforce in Greece without the complexities of establishing a local entity.

Rivermate, as an Employer of Record (EOR) in Greece, ensures HR compliance through a comprehensive understanding and application of local labor laws, regulations, and best practices. Here are several ways Rivermate achieves this:

1. Local Expertise and Knowledge: Rivermate employs local HR professionals who are well-versed in Greek labor laws and regulations. This local expertise ensures that all employment practices are compliant with national standards, including hiring, contracts, payroll, benefits, and terminations.

2. Employment Contracts: Rivermate ensures that all employment contracts are compliant with Greek labor laws. This includes adhering to regulations regarding contract types (e.g., fixed-term, indefinite), probation periods, notice periods, and termination conditions. They also ensure that contracts are written in Greek, as required by law, and include all mandatory clauses.

3. Payroll Management: Rivermate handles payroll processing in strict accordance with Greek regulations. This includes accurate calculation of wages, taxes, social security contributions, and other statutory deductions. They ensure timely and correct payments to employees and relevant authorities, thus avoiding any legal penalties.

4. Tax Compliance: Rivermate ensures compliance with Greek tax laws by managing employee income tax withholdings and ensuring that all necessary tax filings and payments are made on time. They stay updated on any changes in tax legislation to ensure ongoing compliance.

5. Social Security and Benefits: Rivermate manages the registration of employees with the Greek social security system (EFKA) and ensures that all contributions are accurately calculated and paid. They also administer statutory benefits such as health insurance, pensions, and other social security benefits.

6. Labor Law Adherence: Rivermate ensures compliance with Greek labor laws regarding working hours, overtime, rest periods, and leave entitlements (e.g., annual leave, sick leave, maternity/paternity leave). They monitor and implement any changes in labor legislation to maintain compliance.

7. Health and Safety Regulations: Rivermate ensures that all workplace health and safety regulations are adhered to, providing a safe working environment for employees. This includes compliance with the Occupational Health and Safety Act and other relevant regulations.

8. Employee Rights and Protections: Rivermate ensures that employee rights are protected in accordance with Greek labor laws. This includes non-discrimination, fair treatment, and adherence to collective bargaining agreements where applicable.

9. Legal Updates and Training: Rivermate continuously monitors changes in Greek employment laws and regulations. They provide regular training and updates to their HR team and clients to ensure ongoing compliance and awareness of new legal requirements.

10. Dispute Resolution: Rivermate assists in resolving any employment disputes in compliance with Greek labor laws. They provide guidance on legal procedures and represent the employer in negotiations or legal proceedings if necessary.

By leveraging their local expertise and comprehensive HR services, Rivermate ensures that companies can operate in Greece with full compliance to local employment laws, thereby minimizing legal risks and administrative burdens.

Yes, employees in Greece receive all their rights and benefits when employed through an Employer of Record (EOR) like Rivermate. An EOR ensures compliance with local labor laws and regulations, which is crucial in a country like Greece where labor laws are comprehensive and protective of employee rights. Here are some key aspects:

1. Employment Contracts: The EOR provides legally compliant employment contracts that adhere to Greek labor laws, ensuring that all terms of employment, including job roles, responsibilities, and compensation, are clearly defined and lawful.

2. Wages and Salaries: Employees receive their wages and salaries in accordance with Greek minimum wage laws and industry standards. The EOR ensures timely and accurate payroll processing, including the calculation of overtime, bonuses, and other compensation elements.

3. Social Security and Taxes: The EOR handles all mandatory social security contributions and tax withholdings. This includes contributions to the Greek social insurance system (EFKA), which covers pensions, healthcare, and other social benefits.

4. Benefits: Employees are entitled to statutory benefits such as paid annual leave, sick leave, maternity/paternity leave, and public holidays. The EOR ensures these benefits are provided in compliance with Greek labor laws.

5. Health and Safety: The EOR ensures that workplace health and safety standards are met, providing a safe working environment as required by Greek regulations.

6. Termination and Severance: In the event of termination, the EOR manages the process in accordance with Greek labor laws, which include specific procedures for notice periods and severance pay.

7. Employee Rights: Greek labor laws protect employees' rights to fair treatment, non-discrimination, and the right to join trade unions. The EOR ensures these rights are upheld.

By using an EOR like Rivermate, companies can be confident that their employees in Greece are receiving all their legal rights and benefits, while also mitigating the risks associated with non-compliance with local labor laws. This allows businesses to focus on their core operations while ensuring their workforce is well-managed and protected.