Employer of Record in Greece

published on 26 April 2024 | reading time approx. 3 minutes

by Spyridon Michopoulos, Dinamiki EPE

In Greece, the concept of Employer of Record (EoR) is well known and enshrined in law, clearly differentiating it from employee leasing. The future development of the EoR remains uncertain, but given the shortage of skilled labour, foreign companies tend to hire employees abroad and offer services from Greece, often with more attractive remuneration options.

Is the concept of EoR known in your country? Is the concept of EoR regulated by law in your country?

In Greece, the recruitment of employees using the Employer of Record (EoR) concept is widely known and regulated by law in Greece. There is a demand for EoR, both from local and foreign companies, as there is a shortage of personnel everywhere. Initially, the need to cover such demands led to the adoption of Law 2956/2001. Subsequently, Law 4052/2012 was passed, which implemented Directive 2008/104 into Greek Law.

Is the EoR concept similar to temporary employment/labor leasing in your country?

The EoR concept is not similar to temporary employment. The employees who are subject to this concept are treated as "normal" employees, namely as if they had been hired by the final employers.

Special features of the activity within the framework of the EoR concept

The law defines the conditions that a company is required to fulfil in order to obtain a license.

These conditions are:

Application signed by the Managing Director of the company.
Registered as a company in Greece.
Copy of the company’s articles of association.
Existence of office space
Criminal record certificate for the company’s Managing Director

In order to establish an EoR company, it is necessary to notify the Ministry of Labour of the commencement of certain activities, together with the legal documents certifying the fulfilment of the legal requirements mentioned above. Subsequently, the Employment Directorate of the Ministry of Labour informs the company, on the basis of the documents submitted and the report of the tripartite committee, that it must provide guarantees for the remuneration of temporary workers and social security contributions within ten days after receiving the notification. No specific permission is required for the economic employer's activity. However, there are special circumstances in which the economic employer is not allowed to enter into a temporary employment contract. The total duration of the employee's employment with the indirect employer may not exceed 36 months, which includes any renewals made in writing: The principle of equal treatment applies with regard to basic employment conditions and health and safety at the workplace, so that they enjoy the same level of safety as the regular employees of the indirect employer.

What are the special tax features of the EoR concept in your country?

The risk of establishing a permanent establishment cannot be excluded. Further details about the activities that the foreign company will carry out in Greece are required in order to evaluate the risk of establishing a permanent establishment. If the work is performed remotely, the temporary employee is subject exclusively to Greek tax regulations and is taxed on the income earned from this employment. If the temporary employee is posted abroad, the other applicable double taxation agreements should be checked in each case to determine the country with the right of taxation.

How do you anticipate the concept of EoR evolving in your country from your perspective?

It is not possible to tell with certainty how the EoR concept will develop in Greece, although the market, like everywhere else in Europe, is facing considerable problems with the shortage of skilled personnel. The current trend is that foreign companies in the Greek market are looking for employees to be hired abroad and provide their services remotely from Greece. They offer higher remuneration options that cannot be offered by Greek employers.