New Labour Framework: Working Time Arrangements—The Regulation and Its Prospects
(Article 8 of Law No. 5239/2025)

Working time arrangements constitute one of the most widely discussed institutions of Greek labour law in recent years. We introduced the discussion on their rationalisation and the reassessment of the relevant legislative framework on the basis of the Cypriot model as early as May 2020. The institutional framework in force until recently had proved impracticable and devoid of substance. The recent labour law has taken a small step towards the correct (and previously proposed) direction; not, however, a sufficiently bold one…

Concept

In simple terms and in general: a working time arrangement exists where, during periods of increased workload, work is performed in excess of the statutory time limits, while during other periods working hours are correspondingly reduced. The periodic fluctuations in working time (and, ultimately, the balancing of working hours) do not affect the employee’s remuneration.

The Previous Institutional Framework and Its Failure

This institution was introduced in Greece as early as the 1990s. Its objective was to create a more flexible framework for organising working time, capable of responding to the changing needs of undertakings and employees. Despite its interesting and promising prospects, its practical application proved extremely limited. The strict conditions, the highly bureaucratic nature of the procedure and the requirement of collective agreements rendered working time arrangements a theoretical possibility rather than a functional tool.

In its original form, the institution provided that working time arrangements could only be agreed between the employer and the enterprise-level trade union organisation or the works council, within a reference period of three (3) months. Subsequently, equally rigid procedural requirements were introduced, such as referral of disputes to OMED or to a special Working Time Arrangement Committee.

Under the previous legislative framework (Law No. 1892/1990, as amended by Law No. 3385/2005 and Law No. 3986/2011), two principal systems for the allocation of working time were provided: either on a six-month basis or through the allocation of 256 hours within 32 weeks. As a result, the institution remained practically inapplicable. The main reasons were twofold: (a) the requirement of a collective agreement and (b) the absence of a flexible implementation framework.

Only in 2021 was the possibility introduced for an individual agreement between employer and employee for the arrangement of working time, following intense public debate directed at the executive authority; however, this was initiated by the employee (as characteristically stated by the then Minister of Labour, Mr Hatzidakis, during parliamentary debate and public discourse): “so that the employee can go and harvest his olives”. This regulation, although innovative for Greek standards, could only be applied on a supplementary basis.

Thus, while the institution was intended to ensure adaptability and better utilisation of human resources, in practice it became trapped in procedural constraints.

The Need for Reform

Experience over recent decades (and, above all, global experience) has highlighted the need for radical reform and simplification of the working time arrangement system. It has been repeatedly pointed out that over-regulation of the institution led to inertia and inaction. Our publicly expressed proposals for legislative intervention focused on the following key principles:

• Direct agreement between employer and employee, without the need for trade union mediation or prior failure of collective negotiations.
  • Simplification of procedures and decoupling from the “employee request” model, which lacked seriousness and created legal deadlocks.
  • Shorter reference periods, even weekly, so that the arrangement corresponds to actual production, operational and, of course, employee needs.

It appears that, after almost five years, rationality has gradually begun to prevail: many of these proposals are already being implemented through the new legislative framework.

The New Framework: Amendment of Article 202 of the Labour Code (Presidential Decree No. 62/2025)

The recent legislative intervention (amendment of Article 202 of Presidential Decree No. 62/2025 by Article 8 of Law No. 5239/2025) pursues a dual objective: to provide employees with greater flexibility, enabling them to organise their time according to their personal needs; and to offer undertakings the necessary degree of adaptability, as they frequently face fluctuations in their activity.

The most significant innovation is the possibility of weekly working time arrangements. It is now permitted to agree on a reference period of at least one week, within which additional hours worked on one day may be offset by correspondingly reduced hours on another day of the same week. Within this framework (already pursuant to Article 55 §2 of Law No. 4808/2021), the application of a four-day working system of ten (10) hours per day throughout the year is also permitted.

At the same time, the dual and impracticable system of the previous framework (on a six-month basis or through the allocation of 256 hours within 32 weeks) is abolished, as it was deemed unnecessary in light of the flexible possibility of weekly arrangements.

It should be noted, however, that the average weekly working time over the reference period remains (logically) at forty (40) hours (excluding any additional work and overtime hours performed during the period of reduced activity). If any additional work and overtime hours are taken into account, the average must not exceed forty-eight (48) hours per week. This is, of course, subject to the application of a shorter contractual working time.

Furthermore, the new regulation allows for the granting of additional days of paid annual leave as a means of offsetting increased working hours. Alternatively, increased working time may be compensated by reduced working hours or by granting rest days (time off).

Protective Provisions and Limits of Application

The flexibility provided does not affect the fundamental protective provisions in favour of employees. In particular:

1. the maximum daily working time limit remains at ten (10) hours,
2. compliance with mandatory daily and weekly rest periods is ensured,
   • the agreement on working time arrangements must be concluded in writing and (according to an announcement of the Independent Labour Inspectorate Authority) must be filed with the locally competent Labour Inspectorate,
3. the express prohibition of dismissal of an employee who does not consent to the arrangement is maintained, and
4. in the event of termination of the employment relationship before the completion of the reference period, the employee is compensated for the excess hours worked.

Evidently, the employer must submit a declaration of digital organisation of working time and any amendments thereto for the entire reference period, in accordance with the terms set out in the arrangement agreement.

The working time arrangement system cannot be imposed unilaterally by the employer. Prior agreement with employee representatives or directly with the employee is required. The possibility of concluding an individual agreement continues (unfortunately) to be activated only where there is no trade union organisation, works council or association of persons within the undertaking, or where collective negotiations have failed.

We must, however, proceed to the next step: namely, to allow agreements on working time arrangements directly between employer and employee, irrespective of the existence (or non-existence) of a trade union organisation, works council or association of persons within the undertaking and, even more so, irrespective of whether a relevant agreement has been reached.

Work–Life Balance

A key advantage of the new regulation is that it contributes to improving the balance between professional and personal life. The possibility of adjusting working time on the basis of (also) individual or family needs is consistent with European practice and modern approaches to labour flexibility. At the same time, undertakings benefit from the ability to organise their productive operations more effectively by adjusting working schedules to periods of increased or reduced activity. Correspondingly, employees are given the opportunity to regulate and balance their working time and personal time.

Challenges and Conditions for Success

Despite the initial (indeed positive) indications, the success of the new framework will depend primarily on its practical implementation. The process of concluding the relevant agreements must be simple and transparent, free from bureaucratic obstacles and, evidently, governed by clear rules.

Substantive information must be provided to undertakings on how to properly utilise the institution and adopt a working time arrangement system that meets their needs.

The reform of the working time arrangement institution constitutes an important step towards the modernisation of Greek labour law. For the first time, the system acquires realistic conditions for application, capable of benefiting both employees and undertakings. The proper utilisation (and further rationalisation) of the reformed institution of working time arrangements may substantially contribute to meeting the needs of business and labour; to aligning Greek practice with European standards; and to ensuring a labour framework that supports competitiveness without undermining the dignity of work.

Stavros Koumentakis

Managing Partner

Koumentakis and Associates Law Firm