New Clarifications on the Various Employment Support Measures Issued by the Greek Government due to the COVID-19 Crisis

Author: Ioanna Kyriazi, KG Law Firm

A new ministerial decision was published on 29 March 2020 with no. 12998/232/23.03.2020, which specifies in more detail the various governmental measures for the support of employees and companies who have suspended their operations due to the Covid-19 situation or who have been significantly affected by same in accordance with their Code of Business Activity (either their main Code or their secondary Code based on their 2018 revenues, as defined by the Ministry of Finance). More specifically:

I. Support Measures for employers and employees of the private sector who have suspended their operations following the public authorities’ order:

1. Suspension of employment contracts:

• The employees of companies who have suspended their operations following an order by the public authorities are not obliged to provide their work and their employers are not obliged to pay any salaries, due to the fact that such suspension constitutes a force majeure event. In that case, the employment agreements of the employees are suspended for as long as the public authorities’ order remains in effect.
• The fixed term employment agreements which expire after the effective date of the suspension of the employer’s operations as per the above are suspended as well and they continue to be effective after the expiration of the suspension period for the remaining of their contractual duration.
• Any unpaid leave which may be agreed between the employees and the aforementioned companies are automatically annulled. The employment agreement of the said employees is also suspended and the employees are entitled to receive the special purpose compensation by the State, as described herein below.
• The aforementioned employers who have suspended their operations following an order by the public authorities cannot legally proceed to any employee termination for as long as the governmental measures due to the Covid-19 continue to be in effect. Any employee termination during the said period is considered null and void.

To that effect, any employee terminations which have been realized as of 18 March 2020 and onwards are null and void.

2. Special purpose compensation and other measures:

• The employees of the aforementioned companies who are on suspension are entitled to receive by the Greek State a special purpose compensation of EUR 800, which covers a period of 45 calendar days, provided that they do not have any other employment relationship with another employer. In case said employees are employed by more than one employer who all have suspended their operations following an order by the public authorities and therefore their employment agreements are subsequently suspended, they need to choose only one employer in order to be entitled to the aforementioned special purpose compensation by the Greek State. 
• Such special purpose compensation is tax free and cannot be seized or set off with any other debt.

3. Social security coverage of the suspended employees:

• All the aforementioned employees who are suspended as per the above will have full social security coverage by the Greek State, calculated on the basis of their reference salary for a period of 45 days.
• Their employers are obliged to submit to the social security authorities the Analytical Periodical Declarations for the suspended employees.

4. Payment procedure of the special purpose compensation:

• The employees are obliged to submit a solemn declaration and application to the electronic platform of the Ministry of Labour and Social Affairs called “supportemployees.yeka.gr” from 01 April 2020 to 10 April 2020 in accordance with the last number of their tax registration number. Such a solemn declaration should include their personal details and the protocol number of the submission of their employer’s declaration to the ERGANI platform, as well as the details of their bank account (IBAN).
• Moreover, in case they lease a house as their main residence, they also need to include in their aforementioned solemn declaration the details of the owner of the leased house, as well as the details of said house, in order to be entitled to receive a discount of 40% in the total amount of their rent for the months of March and April 2020.
• The employers are obliged to submit to the ERGANI platform of the Ministry of Labour and Social Affairs until 31 March 2020 a Solemn Declaration, stating that their operations have been suspended due to the public authorities’ order, in order to be entitled to a similar rent reduction of 40% of their office rentals. In the said Solemn Declaration, the employers should also declare the details of the owner of their leased property and the details of such property, the details of the employees who have been suspended, as well as the details of the employees who have been either terminated or voluntarily resigned from 01 March 2020 until 20 March 2020.

The aforementioned employers should notify such Solemn Declaration to their employees in writing or through e-mail until 31 March 2020, stating also the protocol number of the submission of the same to the ERGANI platform.

In the absence of such Solemn Declaration, the employers cannot use any of the financial support measures issued by the Greek Government (i.e. the delay of payment of their existing debts to the Greek State until 30 August 2020, etc.)

5. Delay of payment date of the employees’ debts towards the social security authorities:

• For the employees who have debts to the social security authorities which expire on 31 March 2020, the payment date of the same is delayed for three months without any increment or interest.

II. Support measures for the employees of companies of the private sector which continue to operate but are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance in accordance with the tax code of their main business activity or their secondary business activity based on their 2018 revenues):

1. Suspension of employment contracts – invalidity of employee terminations:

• Employers who are significantly affected by the Covid-19 crisis in accordance with the Tax Code of their main business activity or their secondary business activity (based on their 2018 revenues) are entitled to suspend the employment agreements of all or part of their personnel from 21 March 2020 until 20 April 2020 and for a fixed period of 45 calendar days. Such suspension cannot be withdrawn by the employer before the expiration of the fixed 45 days period set by the government. Within the aforementioned period (i.e. from 21 March 2020 until 20 April 2020) the said employers may use this suspension measure gradually and for different numbers of employees.
• The “Main Business Activity” is defined by the main Tax Code of Business Activity which has been declared by the company to the tax authorities. The “Secondary Business Activity based on the 2018 revenues” is defined by the secondary Tax Code of Business Activity which has been declared by the company to the tax authorities, the revenues of which (as stated in the company’s tax declaration for the tax year 2018) are higher than the relevant revenues of the main Tax Code of Business Activity of the company on 20 March 2020.
• The employment agreements of fixed term employees which have not expired until 21 March 2020 can also be suspended. After the expiration period of the suspension, the employment agreement continues and remains effective for the remaining contractually agreed period.
• The employers, who suspend the employment agreements of part of their personnel, are entitled to use other alternative measures (i.e. the new rotation work system or the transfer to another company of the group) to the rest of their personnel.
• The employers who make use of this suspension measure cannot legally terminate any of their employees and in case they realize any employee termination, same is null and void.

Furthermore, the employers who make use of this suspension measure are obliged to retain after the expiration of the suspension period and for a period equal to same (i.e. 45 days), the same headcount and specifically the same employees with the same employment terms and conditions they had on 21 March 2020. Voluntary resignations, terminations due to retirement, as well as expirations of fixed terms employees are not included in the above restriction.

2. Special purpose compensation and other measures:

• The employees of the aforementioned companies whose employment contracts have been suspended due to the fact that their employer has used the suspension measure are entitled to receive by the Greek State a special purpose compensation of EUR 800, which covers a period of 45 calendar days, provided that they do not have any other employment relationship with another employer. In case said employees are employed by more than one employer who have used the suspension measure, they need to choose only one employer in order to be entitled to the aforementioned special purpose compensation by the Greek State.
• Such special purpose compensation is tax free and cannot be seized or set off with any other debt.

3. Social security coverage of the suspended employees:

• All aforementioned employees who are suspended as per the above will have full social security coverage by the Greek State, calculated on the basis of their reference salary for a period of 45 days.
• Their employers are obliged to submit to the social security authorities the Analytical Periodical Declarations for the suspended employees.

4. Payment procedure of the special purpose compensation:

• The employees are obliged to submit a solemn declaration and application to the electronic platform of the Ministry of Labour and Social Affairs called “supportemployees.yeka.gr” from 01 April 2020 to 30 April 2020 (and in any case after they have been notified that they will be suspended). Such solemn declaration should include their personal details and the protocol number of the submission of their employer’s declaration to the ERGANI platform, as well as the details of their bank account (IBAN).
• Moreover, in case they lease a house as their main residence, they also need to include in their aforementioned solemn declaration the details of the owner of the leased house, as well as the details of said house, in order to be entitled to receive a discount of 40% in the total amount of their rent for the months of March and April 2020.
• The employers are obliged to submit to the ERGANI platform of the Ministry of Labour and Social Affairs a Solemn Declaration, stating that they belong to the category of companies which are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance). In said Solemn Declaration the employers should also declare the details of the owner of their leased property and the details of such property in order to be entitled to the 40% reduction of their office rent, as well as the details of the employees who have been either terminated or voluntarily resigned from 01 March 2020 until 20 March 2020. The aforementioned employers should notify such Solemn Declaration to their employees in writing or through e-mail until 31 March 2020, stating also the protocol number of the submission of same to the ERGANI platform. In case the employers do not submit the aforementioned Solemn Declaration, they cannot use any of the financial support measures issued by the Greek Government (i.e. the delay of payment of their existing debts to the Greek State until 30 August 2020) and if they have started to make use of same, they will be excluded.
• In any case, even if the aforementioned employers do not use the suspension measure, they can still make use of the financial support measures issued by the Greek Government (i.e. the delay of payment of their certified debts to the Greek State until 30 August 2020).

5. Telework and suspension of employment contracts – discretionary payment of an additional amount on top of the special purpose compensation:

• Employees who work from their home (through telework) in companies which are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance in accordance with their tax Code of Business Activity), are not entitled to receive the special purpose compensation by the State.
• The employers may pay at their own discretion to their employees who are entitled to the special purpose compensation by the State an additional amount which cannot exceed their normal gross monthly remuneration. For such discretionary amount, the employers are obliged to submit an Analytical Periodic Declaration to the social security authorities and pay the corresponding social security contributions, which are deducted from the contributions to be covered by the Greek State.
• Exceptionally, the aforementioned employers may agree with their employees who are on suspension and are therefore entitled to the special purpose compensation by the Greek State, to provide telework exclusively for the coverage of temporary needs of the company. Such telework should be declared to the ERGANI platform by the employer and should be paid by the latter proportionally, in accordance with the gross salary of the employee. In case the employer does not proceed to such declaration to the ERGANI platform, as mentioned above, it will face administrative fines by the labour authorities, in accordance with the general provisions of Greek labour legislation.

The amount of the employees’ compensation for such telework can be up to their normal salary, following the deduction of the special purpose compensation which the employee will receive by the Greek State. For the aforementioned telework compensation, the employer should submit an Analytical Periodic Declaration and pay the corresponding social security contributions to the social security authorities, which are deducted from the contributions to be covered by the Greek State.

6. Delay of payment date of the employees’ debts towards the social security authorities:

• For the employees who have debts to the social security authorities which expire on 31 March 2020, the payment date of same is delayed for three months without any increment or interest.

III. Support measures for the employees who worked for companies which have suspended their operations following the public authorities’ order or for companies who continue their operations but have been significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance) and whose employment agreements have been terminated, either through voluntary resignation or through termination by their employer during the period from 01 March 2020 until 20 March 2020:

Special purpose compensation: 

The employees of companies which have suspended their operations following the public authorities’ order or employees of companies who continue their operations but have been significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance) and whose employment agreements have been terminated, either through voluntary resignation or through termination by their employer during the period from 01 March 2020 until 20 March 2020, are entitled to receive the special purpose compensation of EUR 800, in accordance with the procedure described above, provided that they do not have any other employment agreement with another employer.

Said employees are entitled to the special purpose compensation, regardless of whether they are entitled to receive unemployment allowance by the competent unemployment fund.

The special purpose compensation is tax free and cannot be seized or set off with any other debt.

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« Extension of Deadlines for the Development of RES Projects are under Review by the Government due to Covid-19 » Recent EOF Circular on Scientific Events

Author: Ioanna Kyriazi, KG Law Firm

A new ministerial decision was published on 29 March 2020 with no. 12998/232/23.03.2020, which specifies in more detail the various governmental measures for the support of employees and companies who have suspended their operations due to the Covid-19 situation or who have been significantly affected by same in accordance with their Code of Business Activity (either their main Code or their secondary Code based on their 2018 revenues, as defined by the Ministry of Finance). More specifically:

I. Support Measures for employers and employees of the private sector who have suspended their operations following the public authorities’ order:

1. Suspension of employment contracts:

• The employees of companies who have suspended their operations following an order by the public authorities are not obliged to provide their work and their employers are not obliged to pay any salaries, due to the fact that such suspension constitutes a force majeure event. In that case, the employment agreements of the employees are suspended for as long as the public authorities’ order remains in effect.
• The fixed term employment agreements which expire after the effective date of the suspension of the employer’s operations as per the above are suspended as well and they continue to be effective after the expiration of the suspension period for the remaining of their contractual duration.
• Any unpaid leave which may be agreed between the employees and the aforementioned companies are automatically annulled. The employment agreement of the said employees is also suspended and the employees are entitled to receive the special purpose compensation by the State, as described herein below.
• The aforementioned employers who have suspended their operations following an order by the public authorities cannot legally proceed to any employee termination for as long as the governmental measures due to the Covid-19 continue to be in effect. Any employee termination during the said period is considered null and void.

To that effect, any employee terminations which have been realized as of 18 March 2020 and onwards are null and void.

2. Special purpose compensation and other measures:

• The employees of the aforementioned companies who are on suspension are entitled to receive by the Greek State a special purpose compensation of EUR 800, which covers a period of 45 calendar days, provided that they do not have any other employment relationship with another employer. In case said employees are employed by more than one employer who all have suspended their operations following an order by the public authorities and therefore their employment agreements are subsequently suspended, they need to choose only one employer in order to be entitled to the aforementioned special purpose compensation by the Greek State. 
• Such special purpose compensation is tax free and cannot be seized or set off with any other debt.

3. Social security coverage of the suspended employees:

• All the aforementioned employees who are suspended as per the above will have full social security coverage by the Greek State, calculated on the basis of their reference salary for a period of 45 days.
• Their employers are obliged to submit to the social security authorities the Analytical Periodical Declarations for the suspended employees.

4. Payment procedure of the special purpose compensation:

• The employees are obliged to submit a solemn declaration and application to the electronic platform of the Ministry of Labour and Social Affairs called “supportemployees.yeka.gr” from 01 April 2020 to 10 April 2020 in accordance with the last number of their tax registration number. Such a solemn declaration should include their personal details and the protocol number of the submission of their employer’s declaration to the ERGANI platform, as well as the details of their bank account (IBAN).
• Moreover, in case they lease a house as their main residence, they also need to include in their aforementioned solemn declaration the details of the owner of the leased house, as well as the details of said house, in order to be entitled to receive a discount of 40% in the total amount of their rent for the months of March and April 2020.
• The employers are obliged to submit to the ERGANI platform of the Ministry of Labour and Social Affairs until 31 March 2020 a Solemn Declaration, stating that their operations have been suspended due to the public authorities’ order, in order to be entitled to a similar rent reduction of 40% of their office rentals. In the said Solemn Declaration, the employers should also declare the details of the owner of their leased property and the details of such property, the details of the employees who have been suspended, as well as the details of the employees who have been either terminated or voluntarily resigned from 01 March 2020 until 20 March 2020.

The aforementioned employers should notify such Solemn Declaration to their employees in writing or through e-mail until 31 March 2020, stating also the protocol number of the submission of the same to the ERGANI platform.

In the absence of such Solemn Declaration, the employers cannot use any of the financial support measures issued by the Greek Government (i.e. the delay of payment of their existing debts to the Greek State until 30 August 2020, etc.)

5. Delay of payment date of the employees’ debts towards the social security authorities:

• For the employees who have debts to the social security authorities which expire on 31 March 2020, the payment date of the same is delayed for three months without any increment or interest.

II. Support measures for the employees of companies of the private sector which continue to operate but are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance in accordance with the tax code of their main business activity or their secondary business activity based on their 2018 revenues):

1. Suspension of employment contracts – invalidity of employee terminations:

• Employers who are significantly affected by the Covid-19 crisis in accordance with the Tax Code of their main business activity or their secondary business activity (based on their 2018 revenues) are entitled to suspend the employment agreements of all or part of their personnel from 21 March 2020 until 20 April 2020 and for a fixed period of 45 calendar days. Such suspension cannot be withdrawn by the employer before the expiration of the fixed 45 days period set by the government. Within the aforementioned period (i.e. from 21 March 2020 until 20 April 2020) the said employers may use this suspension measure gradually and for different numbers of employees.
• The “Main Business Activity” is defined by the main Tax Code of Business Activity which has been declared by the company to the tax authorities. The “Secondary Business Activity based on the 2018 revenues” is defined by the secondary Tax Code of Business Activity which has been declared by the company to the tax authorities, the revenues of which (as stated in the company’s tax declaration for the tax year 2018) are higher than the relevant revenues of the main Tax Code of Business Activity of the company on 20 March 2020.
• The employment agreements of fixed term employees which have not expired until 21 March 2020 can also be suspended. After the expiration period of the suspension, the employment agreement continues and remains effective for the remaining contractually agreed period.
• The employers, who suspend the employment agreements of part of their personnel, are entitled to use other alternative measures (i.e. the new rotation work system or the transfer to another company of the group) to the rest of their personnel.
• The employers who make use of this suspension measure cannot legally terminate any of their employees and in case they realize any employee termination, same is null and void.

Furthermore, the employers who make use of this suspension measure are obliged to retain after the expiration of the suspension period and for a period equal to same (i.e. 45 days), the same headcount and specifically the same employees with the same employment terms and conditions they had on 21 March 2020. Voluntary resignations, terminations due to retirement, as well as expirations of fixed terms employees are not included in the above restriction.

2. Special purpose compensation and other measures:

• The employees of the aforementioned companies whose employment contracts have been suspended due to the fact that their employer has used the suspension measure are entitled to receive by the Greek State a special purpose compensation of EUR 800, which covers a period of 45 calendar days, provided that they do not have any other employment relationship with another employer. In case said employees are employed by more than one employer who have used the suspension measure, they need to choose only one employer in order to be entitled to the aforementioned special purpose compensation by the Greek State.
• Such special purpose compensation is tax free and cannot be seized or set off with any other debt.

3. Social security coverage of the suspended employees:

• All aforementioned employees who are suspended as per the above will have full social security coverage by the Greek State, calculated on the basis of their reference salary for a period of 45 days.
• Their employers are obliged to submit to the social security authorities the Analytical Periodical Declarations for the suspended employees.

4. Payment procedure of the special purpose compensation:

• The employees are obliged to submit a solemn declaration and application to the electronic platform of the Ministry of Labour and Social Affairs called “supportemployees.yeka.gr” from 01 April 2020 to 30 April 2020 (and in any case after they have been notified that they will be suspended). Such solemn declaration should include their personal details and the protocol number of the submission of their employer’s declaration to the ERGANI platform, as well as the details of their bank account (IBAN).
• Moreover, in case they lease a house as their main residence, they also need to include in their aforementioned solemn declaration the details of the owner of the leased house, as well as the details of said house, in order to be entitled to receive a discount of 40% in the total amount of their rent for the months of March and April 2020.
• The employers are obliged to submit to the ERGANI platform of the Ministry of Labour and Social Affairs a Solemn Declaration, stating that they belong to the category of companies which are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance). In said Solemn Declaration the employers should also declare the details of the owner of their leased property and the details of such property in order to be entitled to the 40% reduction of their office rent, as well as the details of the employees who have been either terminated or voluntarily resigned from 01 March 2020 until 20 March 2020. The aforementioned employers should notify such Solemn Declaration to their employees in writing or through e-mail until 31 March 2020, stating also the protocol number of the submission of same to the ERGANI platform. In case the employers do not submit the aforementioned Solemn Declaration, they cannot use any of the financial support measures issued by the Greek Government (i.e. the delay of payment of their existing debts to the Greek State until 30 August 2020) and if they have started to make use of same, they will be excluded.
• In any case, even if the aforementioned employers do not use the suspension measure, they can still make use of the financial support measures issued by the Greek Government (i.e. the delay of payment of their certified debts to the Greek State until 30 August 2020).

5. Telework and suspension of employment contracts – discretionary payment of an additional amount on top of the special purpose compensation:

• Employees who work from their home (through telework) in companies which are significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance in accordance with their tax Code of Business Activity), are not entitled to receive the special purpose compensation by the State.
• The employers may pay at their own discretion to their employees who are entitled to the special purpose compensation by the State an additional amount which cannot exceed their normal gross monthly remuneration. For such discretionary amount, the employers are obliged to submit an Analytical Periodic Declaration to the social security authorities and pay the corresponding social security contributions, which are deducted from the contributions to be covered by the Greek State.
• Exceptionally, the aforementioned employers may agree with their employees who are on suspension and are therefore entitled to the special purpose compensation by the Greek State, to provide telework exclusively for the coverage of temporary needs of the company. Such telework should be declared to the ERGANI platform by the employer and should be paid by the latter proportionally, in accordance with the gross salary of the employee. In case the employer does not proceed to such declaration to the ERGANI platform, as mentioned above, it will face administrative fines by the labour authorities, in accordance with the general provisions of Greek labour legislation.

The amount of the employees’ compensation for such telework can be up to their normal salary, following the deduction of the special purpose compensation which the employee will receive by the Greek State. For the aforementioned telework compensation, the employer should submit an Analytical Periodic Declaration and pay the corresponding social security contributions to the social security authorities, which are deducted from the contributions to be covered by the Greek State.

6. Delay of payment date of the employees’ debts towards the social security authorities:

• For the employees who have debts to the social security authorities which expire on 31 March 2020, the payment date of same is delayed for three months without any increment or interest.

III. Support measures for the employees who worked for companies which have suspended their operations following the public authorities’ order or for companies who continue their operations but have been significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance) and whose employment agreements have been terminated, either through voluntary resignation or through termination by their employer during the period from 01 March 2020 until 20 March 2020:

Special purpose compensation: 

The employees of companies which have suspended their operations following the public authorities’ order or employees of companies who continue their operations but have been significantly affected by the Covid-19 crisis (as defined by the Ministry of Finance) and whose employment agreements have been terminated, either through voluntary resignation or through termination by their employer during the period from 01 March 2020 until 20 March 2020, are entitled to receive the special purpose compensation of EUR 800, in accordance with the procedure described above, provided that they do not have any other employment agreement with another employer.

Said employees are entitled to the special purpose compensation, regardless of whether they are entitled to receive unemployment allowance by the competent unemployment fund.

The special purpose compensation is tax free and cannot be seized or set off with any other debt.