Four-day weeks and 13-hour days: Greece introduces major labour law reform

The changes have been introduced under Law 5239/2025, entitled ‘Fair Work for Everyone: Simplification of Legislation – Support for Workers – Protection in Practice – Pension Adjustments’. Recently passed by the Hellenic Parliament and published in the Government Gazette, the new framework introduces changes across key areas – from working time and annual leave, to the modernisation of the Digital Work Card and recruitment procedures. For employers, the law represents both a compliance challenge and a strategic opportunity to modernise workforce planning, streamline processes, and strengthen internal governance. 

One of the key changes concerns the reform of part-time and rotational employment. The explicit time limitation of employment contracts (i.e. daily, weekly, or monthly contracts) has been abolished, allowing employers and employees to freely agree (in writing) on their duration. At the same time, the obligation to submit such contracts to the Labour Inspectorate is also abolished, significantly simplifying procedures for businesses. Equally important is that, for the first time, employees under rotational work arrangements may now perform overtime work. 

Among the most discussed provisions of the new law is the revised overtime framework. Daily overtime increases from three to four hours, while the annual cap remains at 150 hours, and the weekly limit at 48 hours. In practice, an employee may now work up to 13 hours a day for the same employer: eight hours of regular work and five hours of overwork and overtime, with a 20% premium for the first extra hour and 40% for subsequent overtime. This measure, which has been in effect since September 2023 for employees working for two or more employers, is now extended to apply to a single employer, provided that the employee gives explicit consent. The additional hours must be offset by a corresponding reduction on other days to ensure weekly limits are respected, while 13-hour working days may be applied up to 37.5 days per year. Employees who decline overtime retain full protection from dismissal. 

For the first time, the option of a four-day workweek is introduced on a permanent basis. Employers and employees may mutually agree to establish a 10-hour, four-day work schedule per week, without any reduction in pay. This measure is particularly beneficial for working parents who can choose, for example, to work Monday through Thursday and take Friday off, improving their work-life balance. 

The law also introduces greater flexibility in annual leave. Employees may now split their leave into more than two periods per year, provided both parties agree. At the same time, employers are now able to report granted leave electronically to the ERGANI II information system within the first ten days of the month following the period of leave. 

Another major change concerns the parental leave allowance, which is now tax-free, non-transferable, protected from being seized by the state or third parties and does not count towards total household income. Maternity protection is extended to foster mothers of children up to eight years old but also applies to mothers who adopt a child up to eight years of age (previously applicable to children up to six years of age). Moreover, maternity and postnatal benefits are now granted even if the employee has changed employers or insurance funds, through recognition of total insurance time. 

To assist businesses that operate with seasonal or fluctuating workloads, mainly in the tourism and hospitality sectors, a ‘fast-track’ hiring mechanism is being established. Employers will be able to offer fixed-term employment contracts (even for as little as two days in order to quickly meet urgent business needs) via a special electronic application of the system P.S. ERGANI II. Through this, they can submit the essential terms of employment and any necessary documents that may be required in certain cases (e.g. for foreign or underage workers). Employees will receive a notification via the “MyErgani” app and must accept the contract before starting work. The system also allows for amendments to contract terms and immediate new electronic notification, whereby the employee must accept the modification no later than the start of the originally declared working hours or the start of any modified working hours, whichever is earlier. 

As part of the broader digital transformation, the new law introduces practical updates to the implementation of the Digital Work Card. It provides for flexible work attendance with a maximum limit of 120 minutes to be agreed between the employer and the employee, while preparation time is now formally recognised (30 minutes in industry, 10 minutes in other sectors). Three ‘single’ unrecorded entries per month are also permitted without penalty. Any reduction in wages resulting from the use of the digital card is deemed to be a unilateral adverse change and is therefore invalid. 

In addition, the requirement to keep printed records such as leave books, employee rosters, and payroll slips is abolished. All data must now be maintained electronically in ERGANI II. 

The reform also strengthens the health and safety framework. The threshold below which an employer may personally serve as a safety technician is reduced from 50 to 20 employees. All reports from occupational doctors and safety experts must now be electronically recorded. At the same time, a new integrated information system, ‘HIRIDANOS’, will be established to monitor workplace health and safety issues. The law also ratifies three International Labour Organization conventions, reaffirming that occupational health and safety constitute a fundamental human right. 

Finally, the law introduces an adjustment to the Solidarity Contribution for Pensioners (EAS), effectively freezing any increase for retirees who remain employed. This ensures that any pension increment derived from employment will not trigger a higher contribution rate, thus preventing a net reduction in take-home pension income. 

Law 5239/2025 introduces greater flexibility and simplified administrative procedures, creating opportunities for employers to modernise workforce strategies and internal organisational structures. Nonetheless, the newly enacted legislation also raises legitimate concerns regarding the intended degree of flexibility and its potential impact on the destabilisation of employment relationships.  

To navigate the new reforms effectively, employers should prioritise reviewing and amending employment contracts and workforce planning models. At the same time, it is essential that they establish clear and uniform internal policies that comply with the new rules on working time, overtime, leave entitlements, and the use of the Digital Work Card. Employers are also encouraged to strengthen their compliance and risk management frameworks by conducting targeted policy reviews, internal audits, and comprehensive training programmes for HR personnel and management. Finally, and given the stricter reporting requirements and tightening of limits on employers’ safety obligations, reinforcing internal health and safety rules is crucial to ensure compliance.