New Labour Framework: Part-Time & Rotating Employment; New Framework, New Balances
(Article 6 of Law No. 5239/2025)

Flexibility in the labour market has, for decades, constituted both a demand and, at the same time, a tool enabling undertakings (and, of course, employees) to respond to the requirements of the modern economic reality. The principal forms of flexible work are part-time employment and rotating employment. These forms of employment have already been analysed in detail in our previous publications.

Introduction

The recent labour law [amendment of Article 113 of the Labour Code (Presidential Decree No. 62/2025) by Article 6 of Law No. 5239/2025] introduced significant changes to the regulatory legislative framework governing these two forms of flexible employment. The changes primarily aim at reducing bureaucracy for employers at the stage of hiring part-time employees. They also address the reality of overtime work in rotating employment contracts. Nevertheless, essential safeguards for the protection of individuals engaged under these two forms of employment remain in force.

Part-Time Employment

Part-time employment refers to the provision of work for fewer hours than the normal, full-time working hours. A part-time employment contract may be of fixed-term or indefinite duration. Part-time employees receive proportionally lower remuneration, corresponding to their working hours. Their remaining employment rights, which are linked to their working time, are calculated in the same manner.

This form of employment is particularly widespread in undertakings with fluctuating staffing needs. It serves, inter alia, sectors such as retail, services and tourism, where there is a need to cover peak hours without the commitment of a full-time position which, in any event, would be unnecessary.

Rotating Employment

Rotating employment refers to the provision of work for fewer days per week or fewer weeks per month or fewer months per year or, finally, through a combination of these options. In all cases, however, it is performed on a full daily working schedule.

This form of employment may be agreed between employer and employee. However, it may also be imposed unilaterally by the employer (for up to nine months per year) in the event of a reduction in its business activity. In the latter case, rotating employment operates as a means of avoiding termination of employees’ employment contracts. The unilateral imposition of a rotating employment system is permitted only if the employer has carried out consultation with the representatives of its employees.

Part-Time and Rotating Employment Contracts

According to the law (paragraphs 1 and 3 of Article 113 of Presidential Decree No. 62/2025), part-time and rotating employment contracts must be concluded in writing. If a part-time employment contract is not concluded in written form, it is presumed that the employee is employed on a full-time basis.

The minimum content of such contracts consists (pursuant to paragraph 4 of the same article) of:

(a) the identity details of the contracting parties,
(b) the place of work, the registered seat of the undertaking or the address of the employer,
(c) the working time, the method of its allocation and the working periods,
(d) the method of remuneration,
(e) the terms for amendment of the contract, where such terms exist.

The Legislative Reform

With the recent labour law (Article 6 of Law No. 5239/2025), three principal axes of change are introduced (in Article 113 of the Labour Code—Presidential Decree No. 62/2025):

(a) Abolition of the obligation to notify the agreement to the Labour Inspectorate

Until recently, part-time or rotating employment contracts had to be notified to the Labour Inspectorate within eight (8) days from their conclusion. In case of omission, a rebuttable presumption of full-time employment of the employee was provided as a sanction.

Under the current legal framework, this obligation is abolished. In this way, the relevant bureaucratic burden on undertakings is reduced. However, the level of protection of employees under intermittent employment remains intact, as the contract must still be concluded in writing.

Attention is, however, required: the obligation to notify the Labour Inspectorate remains in force where the rotating employment system is imposed within the undertaking by unilateral decision of the employer.

(b) Abolition of time specifications in part-time employment

Under the previous framework, the individual part-time employment contract explicitly specified reduced working time on a daily, weekly, fortnightly or monthly basis. These temporal limitations are abolished.

This change recognises the modern need for greater flexibility and customised forms of contract, benefiting both parties. At the same time, it strengthens party autonomy and contractual freedom.

(c) Express provision for overtime in rotating employment

It is now expressly provided that employees under a rotating employment system may perform overtime work. Overtime hours are remunerated in accordance with the general applicable provisions (Article 194 of Presidential Decree No. 62/2025), i.e. at a rate equal to the hourly wage paid, increased by forty per cent (40%).

This constitutes a positive development both for the employee, who gains the opportunity to increase income, and for the employer, who may respond to fluctuations in workload. However, as clarified, additional work (41st–45th hour per week) is not applicable under a rotating employment regime, since additional work is calculated on the basis of exceeding the full weekly working time of forty (40) hours.

Reform with Balance?

The amendment of the law (Article 113 of Presidential Decree No. 62/2025 by Article 6 of Law No. 5239/2025) undoubtedly moves in the right direction: that of simplifying the operational procedures of undertakings, without affecting fundamental rights of employees under intermittent employment arrangements.

The abolition of the obligation to notify such contracts to the Labour Inspectorate through the “ERGANI II Information System” reduces the administrative burden on undertakings. Furthermore, the promotion of contractual freedom between the parties and the express provision allowing overtime work in rotating employment constitutes a step towards enhancing flexibility. In this way, undertakings—particularly in sectors with significant variability in staffing needs—are facilitated. At the same time, employees are afforded the possibility of increasing their income, an important counterbalance to the reduced duration of work and, correspondingly, reduced remuneration.

We must, however, emphasise the following: the legislative intervention under examination proves to be somewhat cautious. While it modifies and facilitates the conclusion of contracts for flexible forms of employment, it does not substantially intervene in the institution of part-time employment.

We recall our concerns regarding the imposition (introduced by Law No. 4635/2019—Article 59) of a twelve per cent (12%) surcharge in the case of additional work (beyond that agreed within the framework of part-time employment). These concerns have already been addressed in our earlier publications. In order to prevent circumvention of the institution, the means is already available: the digital work card and the management of such additional work as equivalent overtime work.

The acceptance of the need of undertakings (and, at times, employees) for flexible employment (part-time and rotating) has gradually taken place over a long period—not out of necessity but, primarily, on the basis of European practice and related adjustments and requirements. However, as the needs of undertakings and the economy rapidly move in this direction, the legislator can only adapt. The pace of adaptation, unfortunately, remains extremely slow: somewhere between what is necessary (the needs of the economy and entrepreneurship) and what is politically feasible. Remaining optimistic, we continue to look forward to rationality—and, of course, to future legislative initiatives displaying greater boldness and, naturally, acceptance of economic reality and the adaptation of legislation thereto.-

Stavros Koumentakis

Managing Partner

Koumentakis and Associates Law Firm