New Labour Framework: Annual Leave
(Articles 9 & 10 of Law No. 5239/2025)

Annual leave, which we have repeatedly addressed in the past, constitutes a fundamental labour right. Its purpose is to ensure the rest and recreation of the employee as well as the protection of their health. Within the framework of the reforms introduced by the recent labour law (Law No. 5239/2025—on which we have also published relevant articles), significant changes and a substantive reform of the institutional framework governing annual leave are observed (Articles 224 & 225 of the Labour Code—Presidential Decree No. 62/2025). The present article addresses these matters.

General

The new institutional framework simplifies the procedures for recording annual leave and enhances flexibility with regard to its granting. The changes move in two main directions: the abolition of the obligation of prior declaration of leave and the simultaneous reduction of the administrative burden on undertakings; as well as the expansion of the possibility of splitting annual leave, exclusively upon the initiative and written request of the employee.

Recording of Annual Leave in the ERGANI II Information System

Under the new regulation, the previously existing obligation of prior declaration of annual leave is replaced by an obligation to submit a declaratory filing of its granting in the ERGANI II Information System, within the following calendar month after the month in which the leave was granted.

This change is consistent with the provisions already set out in the existing institutional framework (Ministerial Decision No. 40331/Δ1.13521/13.9.2019—Government Gazette B’ 3520). In this manner, harmonisation of the relevant deadlines is achieved and the procedure is simplified for the benefit of undertakings. In practice, the employer is no longer required to record the leave in advance but declares it retrospectively—after it has been granted.

It is recalled that under the previous regime a system of multiple recording of annual leave applied. The employer was required to record employees’ leave in the ERGANI Information System, maintain a leave register with the relevant entry and submit an annual leave schedule (Form E11).

With the above reform, bureaucracy is significantly reduced and potential errors resulting from multiple—and by no means necessary—entries are avoided.

Transitional Provisions for 2025

For the year 2025 and specifically for the annual leave days of that year: (a) the declaration of annual leave is made retrospectively in the ERGANI II Information System, in accordance with the (amended) Article 224 of Presidential Decree No. 62/2025, (b) if the leave days have not been exhausted by 1.1.2026, the obligation to record them in the leave register remains, and (c) the annual leave schedule (Form E11) continues to be submitted.

For annual leave days from 2026 onwards, recording will be carried out retrospectively, exclusively electronically in the ERGANI II Information System, without any additional obligation.

Temporal Splitting of Leave

With the amendment of the existing provision (Article 225 of Presidential Decree No. 62/2025), an effort is made to reform the legislative framework governing the splitting of annual leave so that it corresponds to the actual needs of employees.

Annual leave continues, as a rule, to be taken in one uninterrupted period and on consecutive days. However, if the employee so requests by written application, it may be taken in more than one period, in accordance with their personal choices or family obligations.

Previously, splitting was permitted (a) only into two periods, for reasons of serious operational needs of the undertaking, and (b) into more periods upon the employee’s request (one of which, however, had to be of a minimum duration of two working weeks). The new regulation abolishes the previous restrictions. The initiative for splitting annual leave now belongs exclusively to the employee, who may choose how to allocate their leave time (e.g. four weeks in four separate periods).

The only limitation is that one part of the leave must include at least five (5) or six (6) consecutive working days, depending on whether a five-day or six-day working week applies.

The timing of the granting of leave continues to be a matter of agreement between the employee and the employer. Neither party may unilaterally impose the timing of its taking or granting.

In the event of disagreement, the Labour Inspectorate is competent, remaining the sole authority for resolving such disputes. The employer is, however, obliged to satisfy the leave request no later than two (2) months from its submission.

Electronic Records

A new and highly practical element of the regulation is the express provision allowing leave applications and the corresponding employer decisions to be maintained in electronic form. Given that the vast majority of undertakings now operate with electronic personnel management systems, this provision is fully aligned with the digital reality of the labour market.

Maintaining an electronic archive of applications and related decisions ensures, in addition to transparency, easy access to information in the event of inspection by the competent authorities, while significantly reducing the volume of bureaucracy for undertakings.

Summer Leave

The statutory provision remains unchanged (Article 224 of Presidential Decree No. 62/2025), according to which at least half of the employees in each undertaking must take their leave during the period from 1 May to 30 September. This regulation does not appear to be consistent with the spirit of the reform of labour law pursued by Law No. 5239/2025. The timing of annual leave should constitute exclusively a matter of agreement between the parties to the employment contract, without being imposed against their will, disregarding both the needs of undertakings and those of employees.

Practical Implications – Conclusions

The new legislative intervention constitutes a substantive reform of the institutional framework governing the granting of paid annual leave.

For employers, the changes translate into a simpler, fully digitalised procedure for recording annual leave, reducing the relevant administrative burdens and the risk of errors; subject, of course, to the uninterrupted operation of the ERGANI II Information System. For the time being, however, old and new obligations coexist, which may cause confusion, particularly for small undertakings without an organised HR department.

For employees, flexibility in managing leave time is enhanced, allowing adaptation to their personal needs without limiting the protection afforded by the institution. However, in undertakings with seasonality or increased needs during specific periods of the year, disagreements are likely to arise. Recourse (not particularly likely) to the Labour Inspectorate for the resolution of such issues may, in practice, cause further delays and friction.

Concern is also raised by the complete abolition of the possibility of splitting leave at the initiative of the employer, with the result that urgent operational needs of the undertaking can no longer be addressed simultaneously.

Ultimately, the effectiveness of the new provisions will be judged in practice. For the time being, employers are called upon to review the compliance of their existing internal policies and work regulations with the new legislative framework.

The recent provisions regarding employees’ annual leave undoubtedly move in the right direction. The reduction of the (unnecessary) administrative burden on undertakings is not only welcome but also absolutely necessary. The recognition of the employee’s initiative in submitting a request for annual leave appears reasonable; the abolition, however, of the possibility of splitting leave at the employer’s initiative does not.

Stavros Koumentakis

Managing Partner

Koumentakis and Associates Law Firm