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> Economy

The 8 changes in the labor market: Fast-track hiring, flexible working hours, and split vacation leave

The new labor bill will be open for consultation until September 19 and explicitly states that an employee cannot be dismissed for refusing to work overtime

Newsroom August 26 08:58

The eight changes in the labor market include fast-track hiring, flexible working hours, and split vacation leave. The new labor bill will be open for consultation until September 19 and explicitly states that an employee cannot be dismissed for refusing to work overtime. The bill provides for “split” vacation leave, flexible working hours even within the same week, and fast-track hiring via mobile devices. It introduces the possibility of working up to 13 hours for the same employer under strict conditions to protect the worker. Notably, the bill includes a provision specifying that employees cannot be fired for refusing overtime work, and any termination under such circumstances would be considered invalid.

The Minister of Labor, Niki Kerameos, emphasized that the goal is a fairer labor market that serves both employees, especially parents, and the needs of businesses, highlighting the importance of reducing bureaucratic burdens on companies. The eight key provisions of the bill are the adjustment of working hours on a weekly to annual basis, work up to 13 hours for the same employer, overtime work in part-time employment, fast-track hiring even via mobile phone, voluntary resignation with one click, ending wage abuses through the digital work card, right to split vacation leave, and freezing the solidarity contribution for working retirees.

The adjustment of working hours allows for four-day workweeks throughout the year, giving relief primarily to working parents and those with significant family responsibilities while better meeting business needs during peak periods. Adjustments can be made on a weekly, monthly, or annual basis, giving employees flexibility in scheduling their free time. Any change in working hours requires employee consent. With the new system, and after consultation with the employer, employees can increase or reduce daily working hours while maintaining an average of 40 hours per week. Additional hours can be offset with shorter hours, days off, or vacation later. For example, employees could work ten hours per day for two days and then have reduced hours for two consecutive days in the same week, with an extra day off under the four-day workweek framework. The Ministry of Labor stresses that the eight-hour workday remains a fixed entitlement.

Fast-track hiring procedures via mobile applications will also be promoted, allowing employers to hire staff for urgent needs, such as holidays or weekends when customer service demands increase in catering, lodging, and hotel sectors. Employers can hire workers for up to two days per week using a special electronic application. Before starting work, the employer must declare the essential employment terms through the electronic application. If the employee is foreign or a minor, the necessary legal documents must also be submitted. The employee receives a notification via the MyErgani app and must accept it before starting work. Any changes to declared details require resubmission and acceptance before the modified schedule begins. The bill does not provide a corresponding fast-track dismissal procedure; the existing framework remains unchanged.

Voluntary resignation with one click is included in the bill as part of reducing bureaucracy. Under the current system, when an employee resigns voluntarily, the employer cannot immediately hire a replacement, needing to wait ten days, or the resignation may be considered a dismissal. With fast-track hiring and resignations, replacement hiring occurs immediately without waiting.

The bill allows 13-hour workdays for a single employer, expanding a previous regulation that capped 13 hours across two employers. Conditions include compliance with daily rest (11 hours) and weekly work limits (40 hours), and proper overtime pay. Currently, beyond the eight-hour workday, one hour of extra work (+20% pay) and up to three hours of approved overtime (+40%) are permitted, with a 150-hour annual limit unless special approval is given. The new bill extends the daily limit from 12 to 13 hours without altering other conditions. Employees may work 13 hours per day for a total of 37.5 days per year. More than ten EU countries already recognize the possibility of 13-hour daily overtime. Article 14 explicitly states that employees cannot be dismissed for refusing overtime. The provision protects workers within the new extended overtime framework.

Overtime pay comes with legal increases (plus 40%), ensured by the Digital Work Card; undeclared overtime is considered illegal, with a 120% pay increase owed. For example, an employee working 13 hours for two employers at €8/hour would earn €104 per day, but €119 if all hours are for one employer. Consent is required for any additional hours; refusal cannot result in dismissal.

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The bill also allows overtime for part-time work, with the same 40% pay increases, benefiting employees and business functionality, particularly in the catering sector. Wage abuses via the Digital Work Card are addressed; any salary reduction post-implementation is considered a unilateral harmful change and is invalid.

Vacation leave now offers more autonomy. Employees may split their annual leave into multiple periods after consulting their employer. Previously, split leave was allowed only in two periods, with minimum durations, upon written request. Many private-sector businesses currently give leave in August; some industries prefer winter leave. The new rules remove rigid limits, allowing employees to divide vacation into up to four periods per year if desired.

The bill freezes the solidarity contribution (EAS) for working retirees receiving pension increases due to accrued work contributions. This prevents a pension increase from causing a reduction in the final amount received. For example, if the retiree’s income after the increase exceeds €1,434 (2025 scale), the scale remains unchanged. The solidarity contribution ranges from 3% to 14% depending on monthly income from main pensions.

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