Greece is making waves in the labor market with the introduction of a 6-day workweek for specific industries. This policy aims to address critical human resource shortages, boost productivity, and simplify overtime management. Implemented on July 1st, 2024, the change primarily targets businesses with continuous operations or temporary workload spikes.
Who’s Impacted?
- Targeted Sectors: The new regulation focuses on companies with continuous operations (three 8-hour shifts), such as those in the industrial sector. It also applies to industries experiencing temporary workload surges, excluding sectors like restaurants, cafes, and hotels.
Compensation and Workload Management
Boosting Pay: Employees working the 6th day will receive a minimum 40% pay increase for that day. This measure aims to manage additional workloads with existing personnel rather than hiring temporary staff.
Reducing Red Tape
- Simplifying Overtime: The need for overtime authorization is significantly reduced. This eases the administrative burden of declaring overtime hours in the Ergani system. Employers must still fulfill specific requirements before implementing the 6-day workweek, including proper Ergani notification.
Financial and Legal Considerations
- Social Security Clarification: Clarification on social security contributions for the 6th day is still pending.
Cost-Saving Potential
- Overtime Reduction: Previously, businesses met production demands through overtime and temporary hires. The 6-day workweek offers a more structured approach, potentially reducing overall labor costs.
Balancing Needs
This new law strives to strike a balance for both employers and employees. Businesses benefit from streamlined operations and potentially lower overtime costs. Employees gain a clear framework for additional compensation within a structured work schedule.
A Model for Change?
The 6-day workweek in Greece signifies a bold shift in labor regulations. Its impact on the Greek market is still unfolding, but it may pave the way for other regions facing similar challenges.
Looking for More?
For further information or assistance, contact Eurofast, a regional business advisory organization, at athens@eurofast.eu.