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Greece

Dispute Resolution and Legal Compliance

Understand dispute resolution mechanisms and legal compliance in Greece

Labor courts and arbitration panels

Labor courts in Greece are specialized systems for resolving employment-related disputes. The structure of these courts is divided into three levels: the Courts of First Instance, the Labor Courts of Appeal, and the Supreme Court, also known as the Court of Cassation. The jurisdiction of these courts is broad, handling a wide range of individual labor disputes such as wrongful dismissal, payment of wages, overtime, and other benefits, disputes arising from employment contracts, discrimination and harassment claims, and social security disputes.

The process of resolving disputes in labor courts involves filing a lawsuit, optional conciliation, trial, and judgment. The most common case types are listed under the jurisdiction section. The legal basis for these proceedings includes the Code of Civil Procedure, the Individual Employment Relationship Law (Law 1876/1990), and Collective Bargaining Agreements.

Arbitration in Greece

Arbitration is another mechanism for resolving labor disputes in Greece. It is primarily agreement-based, often included in a collective agreement or individual employment contract. The Mediation and Arbitration Organization (OMED) is a key institution that promotes and facilitates arbitration and mediation in labor disputes. Parties may also agree to resolve disputes through ad-hoc arbitration panels.

The arbitration process involves the selection of arbitrator(s), proceedings, and award. The arbitrator(s) issue a binding decision, which is generally enforceable in Greek courts. The advantages of arbitration include speed, expertise, and confidentiality. Arbitration can be faster than litigation through labor courts, parties can choose arbitrators with specialized knowledge in labor law and specific industries, and arbitration proceedings are generally private.

Compliance audits and inspections

Greece employs a range of regulatory bodies to ensure businesses comply with various laws and standards. Several governmental agencies are responsible for conducting audits and inspections within their respective areas. These include the Labor Inspectorate (SEPE), the Independent Authority for Public Revenue (IAPR), the Hellenic Food Authority (EFET), the General Secretariat for Commerce and Consumer Protection, and Environmental Inspectors.

Inspection Frequency

The frequency of inspections in Greece depends on several factors, including the industry and risk profile, whether the inspection is complaint-driven, and the history of non-compliance of the business. Industries with higher risks, such as construction and manufacturing, may face more frequent inspections. Inspections can also be triggered by complaints from employees, the public, or reports from other agencies. Businesses with a track record of violations might be subjected to greater scrutiny.

The Inspection Process

While specifics may vary, the general steps involved in a compliance inspection typically include notification, an opening meeting, document review, site inspection, interviews, report preparation, and corrective actions. Inspectors may provide notice, though unannounced inspections can occur, especially when prompted by complaints or suspected serious violations. The inspection begins with an explanation of the purpose and scope of the audit. Inspectors examine records, permits, licenses, and other compliance-related documentation. This is followed by physical inspections of facilities, equipment, and observation of work processes. Inspectors may interview employees or management to gather further information. The inspector prepares a report detailing their findings, including any observed areas of non-compliance. Non-compliant businesses may be given a timeframe to rectify identified issues.

Importance of Compliance Inspections

Regular inspections protect workers, consumers, and the environment by ensuring businesses adhere to relevant laws and regulations. Inspections help foster fair competition and prevent businesses from gaining an unfair advantage by disregarding regulations. The potential for audits and inspections serves as a strong deterrent for non-compliant behavior. Inspections can highlight areas where businesses can improve their operations, ultimately helping them become more efficient and compliant.

Consequences of Non-Compliance

Failure to comply with regulations in Greece can result in severe repercussions. Regulatory agencies can impose substantial fines for violations. Businesses might be ordered to make immediate changes or rectify any breaches, potentially leading to costly changes in procedures. In serious cases, businesses may face temporary suspension or even permanent closure of operations. Licences or permits essential for operation may be suspended or revoked due to non-compliance. Certain violations carry the risk of criminal charges, potentially leading to imprisonment for individuals involved. Non-compliance can severely tarnish a business's reputation.

Reporting and whistleblower protections

In Greece, there are several avenues for individuals to report misconduct, regulatory breaches, and other unlawful activities. These can be categorized into internal and external reporting mechanisms.

Internal Reporting

Internal reporting mechanisms include company policies and reporting to management. Ideally, organizations have internal whistleblowing procedures that encourage employees to report concerns through designated channels within the company. In the absence of formal procedures, employees may report issues directly to supervisors, HR, or other appropriate representatives within their organization.

External Reporting

External reporting mechanisms include industry-specific regulators, law enforcement, the Ombudsman, and NGOs. Violations concerning specific industries should be reported directly to the relevant regulatory body. For serious offenses, particularly those of a criminal nature, reporting directly to the police, the Economic Crime Unit, or the public prosecutor's office is essential. The Ombudsman, an independent authority that investigates citizens' complaints against public administration, provides a potential avenue for whistleblowers. NGOs specializing in anti-corruption, labor issues, or specific sectors may offer reporting channels and support for whistleblowers.

Whistleblower Protections in Greece

Greece has taken steps to improve whistleblower protections, but these remain limited compared to some other European nations.

Key Legal Provisions

The primary legal framework for whistleblower protection in Greece is Law 4254/2014, which mainly focuses on public sector corruption. Law 4808/2021 offers some limited protections for private sector employees who report labor law violations.

Protections and Limitations

Existing Greek laws offer fragmented and comparatively weak protection. Protection is stronger for public sector whistleblowers and focused on exposing corruption. Private sector protection is narrower. Protections primarily apply to disclosures made in good faith and where the whistleblower reasonably believes the information to be true. Laws prohibit retaliation in various forms (e.g., dismissal, harassment, demotion) but protections in the private sector are not robust.

Practical Considerations for Whistleblowers

Whistleblowers should document thoroughly, understand reporting procedures, and seek guidance. It's highly advisable to consult with an attorney or an organization specializing in whistleblower support to get the best advice before acting.

Opportunities for Improvement

Greece can strengthen its whistleblower protection framework by enacting broader legislation, expanding protections, and raising awareness. A comprehensive law specifically focused on whistleblower protection in both public and private sectors is needed. There should be robust protection against various forms of retaliation beyond dismissal. Increasing public and employee awareness of reporting channels and whistleblower rights is also crucial.

International labor standards compliance

Greece, as a member state of the International Labour Organization (ILO), has ratified all eight fundamental ILO conventions, demonstrating its commitment to upholding international labor rights principles. These conventions cover a range of labor rights, including the freedom of association, collective bargaining, prohibition of forced labor, minimum age requirements for employment, prohibition of child labor, equal remuneration, and non-discrimination in employment.

Alignment of Domestic Law with International Standards

Greece's domestic labor laws reflect the influence of ILO conventions and European Union labor directives. The Constitution of Greece enshrines fundamental rights, including labor rights and the freedom of association. Law 1264/1982 is a key legislation regulating trade unions, collective bargaining, and the right to strike. The Individual Employment Relationship Law (Law 1876/1990) provides core labor standards on working time, wages, discrimination, and termination of employment. Anti-discrimination laws prohibit discrimination on various grounds within employment, transposing EU directives in this area.

Other Relevant ILO Conventions

In addition to the core conventions, Greece has ratified numerous other ILO conventions addressing areas such as occupational safety and health, social security, and employment policy.

Monitoring and Enforcement

To uphold its international labor obligations, Greece employs several mechanisms. The Labor Inspectorate (SEPE) inspects workplaces and investigates potential violations of labor laws, including those pertaining to international standards. The Ombudsman, an independent authority, handles complaints, including those which may involve breaches of labor rights. Greece also engages in tripartite consultations (government, employers, workers) to discuss labor issues and ensure compliance. As a European Union member state, Greece is subject to EU labor law and the oversight of EU institutions.

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