Greece has concluded a historic agreement that fully reinstates collective labor agreements across the country. Government officials, employer organizations, and workers’ representatives jointly endorsed a new structure designed to strengthen wages, expand protections, and provide clarity on policies for businesses.
Greece’s Minister of Labor Niki Kerameus highlighted the significance of the deal, noting that it brings “security for employees, stability for companies, and transparency to the labor market.” The agreement also closes the chapter on restrictions imposed during the bailout era.
Next steps include the publication of an Action Plan in December and formal legislation expected at the beginning of 2026.
Wider coverage through easier extension of Collective Labor Agreements
A key part of the agreement aims to extend the reach of collective labor agreements to more workers.
Key measures include:
- Reducing the required coverage threshold for extending an agreement from 50% to 40%
- Allowing extensions without examining numerical thresholds when national social partners jointly sign an agreement
- Enabling the General Confederation of Greek Workers (GSEE) to co-sign sectoral agreements upon invitation, strengthening their reach
- Simplifying registration procedures for labor and employer organizations to improve representation and support broader agreement extensions
These updates mean significantly more employees will be covered by standardized working conditions, improving predictability and fairness across sectors.
Full protection for workers after agreements expire
The second major component ensures that workers retain all rights provided under a collective labor agreement even after it expires. Terms such as wages, leave, and working conditions remain fully in effect during a three-month extension and continue beyond that until a new collective or individual contract is in place.
This marks a return to the pre-2012 framework, ending the partial-coverage system introduced during the crisis. Employees hired during the extension period are also fully protected, closing previous loopholes.
Faster and more effective handling of workplace disputes
The agreement also modernizes the processes of the Mediation and Arbitration Organization (OMED) to resolve disputes more quickly and efficiently.
Key upgrades include:
- A new preliminary review mechanism for unilateral mediation and arbitration requests
- Formation of a three-member expert committee, consisting of a labor law professor, an economics professor, and a senior judge, to verify legal requirements before a case proceeds
- Elimination of the second arbitration level to speed up decisions, while preserving the right to judicial review
These improvements aim to provide faster outcomes and reduce uncertainty in the workplace.