---
title: "Greece Termination & Severance 2026"
description: "Greece termination 2026: banded notice up to 4 months, mandatory severance capped at 12 months of pay, and why skipping notice doubles your bill."
canonical: https://www.teamed.global/country-hiring-guides/greece/termination-and-severance
---

Greece · Termination child

Served by Teamed vetted partner-entity network in Greece

# How do you *terminate an employee in Greece* in 2026?

Skip the notice period in Greece and your severance bill doubles. Under [Law 2112/1920 and Law 3198/1955](https://greece-lawyer.com/labor-law-and-social-security/termination-of-employment-relationships-in-greece/), dismissal without notice triggers severance at twice the rate of dismissal with notice, capped at 12 months of salary regardless of tenure.

Last reviewed 12 June 2026 · Greece guide

![Warm late-afternoon light on a whitewashed building with a bright blue door in Athens, Greece.](/images/country-guides/greece-termination-severance.webp)

Illustration · Athens, Greece

Answer.cite this

Greece has two ways to handle severance. Give the full notice period and you pay the lower rate. Notice is 1 month for one to four years of service, rising to 4 months at ten years or more. Skip the notice and pay it out, and the severance doubles. (Law 2112/1920 and Law 3198/1955.)

Severance starts after 12 months of work. On the no-notice option it runs from 2 months of salary (one to four years) up to 12 months (sixteen years or more). Either way, it caps at 12 months of salary. Pay above €2,000/month is not counted.

There is no notice or severance in the first year. If you make several people redundant at once, you must tell the Ministry of Labour first (Law 1387/1983). You cannot let anyone go until 60 days after you file, or until you agree terms.

![A stack of signed Greek employment documents on a marble desk with a coffee cup beside them.](/images/country-guides/greece-termination-polaroid-1.webp)

Signed off

## What are valid grounds for dismissal in Greece?

In Greece you can dismiss a permanent employee without giving a reason. You just need to give the right notice and pay severance. But you cannot fire someone for an unfair reason. Firing someone for being pregnant, in a union, a whistleblower, or disabled is illegal ([Law 4808/2021](https://ypergasias.gov.gr/en/labour-relations/individual-employment-relations/frequently-asked-questions/)).

Gross misconduct is different. In the first 12 months, you can dismiss with no notice and no severance. After that, the no-notice severance rates apply. Always write down what happened.

Practically, the most important distinction in Greek dismissal is not *why* you are terminating but *how*: the choice between the notice route and the without-notice route determines the severance amount. The two tracks are set out in the next section.

### Protected categories

The following categories are protected against dismissal and require specific procedural steps or prior approval:

- **Pregnancy and maternity**: dismissal during pregnancy and for 18 months after childbirth is void unless there is serious cause unrelated to the pregnancy (Law 3896/2010, Law 4808/2021)
- **Trade union representatives**: enhanced protection, dismissal requires Labour Inspectorate involvement (Law 1264/1982 as amended)
- **Whistleblowers**: protected under Law 4990/2022 transposing the EU Whistleblower Directive
- **Employees on parental leave**: protected during parental leave periods under Law 4808/2021
- **Persons with disabilities**: protected under anti-discrimination provisions of Law 4443/2016

Any dismissal within these categories without proper procedure carries the risk of being declared invalid by the courts, requiring reinstatement or payment of back wages up to 3 months of salary.

1. Choose the termination track Decide whether to serve the banded statutory notice or pay in lieu. Serving notice costs less in severance; skipping notice doubles the severance obligation, so model both before the letter goes out.
2. Prepare the written termination document Greek law requires the dismissal to be in writing. Include the termination date, the notice period or confirmation that payment in lieu is being made, and the severance amount payable.
3. Calculate and pay severance on the day Severance, accrued holiday pay, and prorated bonuses must be paid when the termination document is handed over, not at the next payroll run.
4. File the ERGANI notification Submit the termination notification to the Ministry of Labour through the ERGANI system within four business days of the termination date.
5. Check the collective redundancy threshold If the number of dismissals in the current calendar month meets or exceeds the headcount trigger for your employer size, the collective redundancy notification and consultation obligation activates before any individual dismissals become valid.

## How much notice must you give a Greek employee?

Notice depends on how long the person has worked for you. It runs from 1 month (one to four years) up to 4 months (ten years or more). ([Law 2112/1920 and Law 3198/1955](https://ypergasias.gov.gr/en/labour-relations/individual-employment-relations/frequently-asked-questions/).)

There is no notice in the first 12 months. A contract can set a shorter probation period. The law caps probation at 6 months (Law 5053/2023).

| Length of continuous service | Statutory employer notice |
| --- | --- |
| Less than 12 months | None |
| 12 months to less than 2 years | 1 month |
| 2 years to less than 5 years | 2 months |
| 5 years to less than 10 years | 3 months |
| 10 or more years | 4 months (statutory maximum) |

Contractual notice can be longer than the statutory minimum but never shorter. Senior executive contracts routinely carry six to twelve months of contractual notice.

### Notice during probation

During the first 12 months of employment (the statutory no-severance window), the employer owes no notice and no severance on termination. The contractual probation window is capped at 6 months under [Law 5053/2023](https://www.lambadarioslaw.gr/2023/10/recent-updates-in-new-greek-labor-law-5053-2023/) (in force September 2023); once it expires, the employee moves into the general notice and severance regime.

## How is Greek severance pay calculated?

Greece has two ways to pay severance. **With notice:** you give the full notice, then pay the lower rate. It runs from 1 month of salary (one to four years) to 2.5 months (eight to ten years). **Without notice:** you skip the notice and pay double. It runs from 2 months of salary (one to four years) to 12 months (sixteen years or more).

Severance starts after 12 months of work. Both ways cap at 12 months of salary. Pay above €2,000/month is not counted.

| Tenure band | With full notice | Without notice |
| --- | --- | --- |
| 1 to 4 years | 1 month salary | 2 months salary |
| 4 to 6 years | 1.5 months salary | 3 months salary |
| 6 to 8 years | 2 months salary | 4 months salary |
| 8 to 10 years | 2.5 months salary | 5 months salary |
| 16 or more years | capped at 12 months | 12 months salary (cap) |

The calculation uses **actual monthly salary up to €2,000/month**. Salary above this ceiling is excluded. The cap means a high-earning employee at the ceiling for sixteen or more years receives the same statutory severance as one paid at the ceiling exactly. Enhanced terms above the statutory minimum are common for senior roles and typically negotiated at dismissal.

### When severance is paid

Greek law requires severance to be paid on the day the termination document is handed over, not on the next payroll run. Final pay including any accrued holiday and prorated bonuses is due at the same time. An ERGANI notification to the Ministry of Labour must be filed within four business days of the termination.

## When do collective redundancy rules apply in Greece?

Special rules apply if you make several people redundant in one month (30 days). The number that triggers them depends on your size. With 20 to 150 staff, it is 6 people in a month. With more than 150 staff, it is 30 (Law 1387/1983).

If the rules apply, you must tell the Ministry of Labour and the unions. You cannot let anyone go until 60 days after you file, or until you agree terms. Letting someone go before then is not valid.

Greek Ministry of Labour · Collective Redundancy

If you plan to dismiss 6 or more employees (at a 20 to 150-person employer) or 30 or more employees (at a 150+ employer) within a 30 days window, the collective redundancy rules under Law 1387/1983 apply. You must submit a notification to the Ministry of Labour and begin consultations. Dismissals made before the 60 days period expires, or without Ministry consent where applicable, are invalid.

Source: [Greek Ministry of Labour and Social Affairs, Frequently Asked Questions](https://ypergasias.gov.gr/en/labour-relations/individual-employment-relations/frequently-asked-questions/)

The notification must be filed simultaneously with the Ministry and with the employee representatives or trade union. During the consultation period, both parties negotiate alternatives: redeployment, reduced hours, voluntary redundancy packages. The Ministry can extend the consultation period or block the redundancies if the process is not followed.

Individual redundancy severance still applies on top of the collective process. There is no offset between the collective obligation and the individual severance entitlement.

### Procedure steps for collective redundancies

- **Prepare the notification file** with headcount, affected roles, selection criteria, timeline, and alternatives considered
- **Submit simultaneously** to the Ministry of Labour and to employee representatives or union
- **Conduct genuine consultation** within the 60 days window
- **Apply objective selection criteria** consistently across the affected population
- **Pay individual severance** on the day of each individual termination alongside the standard ERGANI notification

## Can you use a mutual termination agreement in Greece?

Yes. Both sides can agree to end the job by mutual consent (called symfoniki lysi). The employee gives up the right to make claims in return for an agreed package. You get a clean break, with no risk of an unfair-dismissal claim.

A mutual deal does not remove the legal severance. So packages usually match or beat the legal figure. That stops the deal being challenged later.

Mutual termination is most useful when the employment relationship has broken down, when a senior executive exit needs agreed terms on non-compete and reference wording, or when the employer wants to avoid the notice period in a way that keeps both parties aligned. It must be in writing and signed by both parties.

Key negotiation points in a Greek mutual termination:

- **Severance quantum**: typically at or above the statutory without-notice schedule as the starting point, since the employee is giving up the right to challenge
- **Reference wording**: agreed text for future reference requests
- **Non-compete and non-solicitation**: clauses are enforceable in Greece if reasonable in scope, territory, and duration
- **Confidentiality**: mutual non-disclosure of terms
- **Outstanding payments**: prorated Christmas and Easter bonuses, accrued annual leave, any outstanding commissions

Courts will scrutinise a mutual termination where the employee later claims they were pressured into signing. Document the negotiation process and allow the employee reasonable time to take independent advice before signing.

## How Teamed runs Greek terminations

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Greece for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. As the legal employer, we run the dismissal, the notice, and the severance payment for you.

We handle the ERGANI filing, the severance maths, and the final pay on **one platform**. You decide who to let go, when, and why.

**Real HR and legal experts** handle your Greek hires from the first offer letter through every payroll cycle. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**, and employer cost **passes through at cost, itemised** on every invoice.

The split of responsibilities under EOR for Greek terminations:

| What Teamed handles | What the client decides |
| --- | --- |
| Notice period calculation against the banded statutory schedule | Whether to serve notice or pay in lieu, knowing the severance difference |
| Severance calculation on the correct track (with or without notice) | Whether to offer enhanced terms above the statutory minimum |
| ERGANI notification within four business days of termination | The business reason and timing of the dismissal |
| Collective redundancy filing with the Ministry of Labour where triggered | Selection criteria and the business case |
| Final payroll: severance, accrued holiday, prorated bonuses, tax treatment | Mutual termination commercial terms |
| Coordination with qualified local Greek employment-law partners for contested exits | Settlement vs defence strategy on any challenged dismissal |

Greece's notice-or-double-pay structure means the track you choose has a direct cost consequence. Teamed models both options before the dismissal letter goes out so you see the numbers first.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Greek contractor who converts to payroll keeps their record, and that same employee can **graduate** from EOR to your own Greek entity without switching systems. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right structure for a first Greek hire, **until it isn't**. Start from the Greece hiring overview.

Key sources: [Greek Ministry of Labour and Social Affairs](https://ypergasias.gov.gr/en/labour-relations/individual-employment-relations/frequently-asked-questions/) and [Eurofound, Greece severance pay](https://apps.eurofound.europa.eu/legislationdb/severance-payredundancy-compensation/greece).

## Frequently asked questions

Does Greece require a reason to dismiss an employee?

For permanent (open-ended) contracts, Greek law does not require the employer to state a reason for ordinary dismissal, provided the correct notice and severance obligations are met. Dismissal is void if motivated by discrimination based on pregnancy, union activity, whistleblowing, or disability. For serious misconduct, a no-notice, no-severance dismissal is available during the first 12 months of employment.

How long is the statutory notice period in Greece?

Statutory employer notice is banded by tenure: 1 month for twelve months to four years of service, 2 months for two to five years, 3 months for five to ten years, and 4 months for ten or more years. No notice is owed during the first 12 months of employment.

What is the difference between Greek severance with notice and without notice?

If you serve the full statutory notice period, the severance rate is the lower with-notice schedule: 1 month of salary for one to four years, rising to 2.5 months for eight to ten years. If you skip notice and pay in lieu, the without-notice rate applies and severance doubles: 2 months of salary for one to four years, rising to 12 months for sixteen or more years. Both tracks are subject to the 12 months cap, calculated on monthly salary up to €2,000/month.

When do collective redundancy rules apply in Greece?

Under Law 1387/1983, collective redundancy rules apply when an employer with 20 to 150 employees proposes 6 or more dismissals within a 30 days period, or when an employer with more than 150 employees proposes 30 or more dismissals in the same window. The employer must notify the Ministry of Labour and consult with employee representatives. Dismissals are invalid if carried out before the 60 days consultation window closes.

When must final pay including severance be paid in Greece?

Greek law requires severance and all outstanding pay to be settled on the day the termination document is handed over. There is no grace period. An ERGANI notification must be filed with the Ministry of Labour within four business days of the termination date.

How long is the probation period in Greece?

Contractual probation is capped at 6 months under Law 5053/2023 (in force September 2023). Separately, the first 12 months of employment is a statutory no-notice, no-severance window: the employer can dismiss during this period without serving notice and without paying severance, even after the contractual probation ends.

Teamed Legal Operations

Greece's notice-or-double-pay structure catches employers who assume payment in lieu is simply buying out the notice period. It isn't. Choosing the without-notice track in Greece can double your severance bill, and that cost is locked in on the day you hand over the termination letter.

A note from Tom Price-Daniel

In Greece, payment in lieu of notice isn't cost-neutral. It doubles the severance rate, and the clock starts the moment the letter is signed.  
The cap is 12 months of salary. The calculation ceiling is €2,000/month. Neither changes the underlying logic: serve the notice, pay the lower rate.  
EOR gives you the maths before the decision, not after.

Tom Price-Daniel · Co-founder, Teamed

## Related Greece guides

- Hiring in Greece, overviewparent
- [Portugal termination and severance](/country-hiring-guides/portugal/termination-and-severance)neighbour
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction, so verify current requirements with the relevant authorities, the Greek Ministry of Labour and Social Affairs (ypergasias.gov.gr) for employment law and the ERGANI system for notifications, or speak to a qualified professional before relying on any specific framework. Law 5053/2023 updated the probation period cap in September 2023; verify whether subsequent amendments apply to your employment contracts.