An employee has the right to withhold labour (επίσχεση εργασίας): to refuse to perform work until outstanding remuneration is paid. Pursuant to Article 648 of the Civil Code (AK), the employer is obliged to pay the employee the agreed remuneration after the provision of the work they agreed to render, while during the operation of the contract the employer is obliged to observe the terms agreed to be binding upon them.
Under the combined provisions of Articles 325, 329, 353 and 656 of the Civil Code, the employee has the right to withhold labour, that is, to suspend the performance owed to the employer by refusing to carry out the work they had agreed to provide, in order to secure the satisfaction of mature claims against the employer — particularly the payment of outstanding remuneration, but also the fulfilment of any other essential term of the employment contract, the breach of which has potentially given rise to a mature claim of the employee (Drama Single-Member Court of First Instance 61/2001).
What does exercising the right to withhold labour mean?
If the employer significantly delays paying the remuneration owed to the employee, the latter has the right to withhold their labour. That is, the employee is entitled to declare to the employer that they are suspending their work until the outstanding remuneration is paid. The result is that the employer is placed in default (mora creditoris), with all the resulting obligations towards the employee, namely to pay the remuneration also for the period during which the withholding of labour lasts. During the employer’s default, the employee is not only relieved of the duty to offer work, but is also entitled to take up employment elsewhere in order to cover basic living needs. It is, of course, understood that the employee must at all times remain ready to work and at the employer’s disposal, in case the default is lifted for any reason.
What is the employee entitled to when their salary is not paid on time?
a) to file a lawsuit and claim with interest the outstanding salaries, as well as compensation for any other loss suffered.
b) to exercise the right to withhold labour.
c) to seek a declaration of bankruptcy of the employer, if the employer is a merchant.
d) to treat the delay as a detrimental unilateral alteration of working conditions, with the related rights, where the delay occurs systematically and is due to the employer’s intent.
e) criminal sanctions against the employer.
How is the withholding of labour effected?
By a corresponding declaration of intent, which must be clear and individual. A mere refusal to work is not sufficient, as it risks being construed as resignation from the post.
Is the declaration of withholding covered by a corresponding declaration of the trade union?
No; the so-called collective withholding of labour is a withholding based on an equal number of declarations made by the individual employees concerned.
What is the sensitive aspect of withholding labour?
The exercise of the right must not be abusive (Article 281 AK); otherwise, instead of being a means of protecting the salary, it may result in the loss of the job.
When is the exercise of the right to withhold labour considered to be in good faith?
The particularities of the employment contract are taken into account; this is usually linked to avoiding catching the employer by surprise, the amount of outstanding remuneration, and the certainty of the claim.
- See also article Termination of Employment Contract
- See also article Severance Pay
- See also article Alteration of Working Conditions
- See also article Annual Statutory Leave
- See also article Employee Remuneration
- See also article Additional Hours – Overtime
- See also article Employer Obligations
FREQUENTLY ASKED QUESTIONS ON WITHHOLDING OF LABOUR
1. What does withholding of labour mean and when am I entitled to exercise it?
Withholding of labour is the right of the employee to stop providing their work when the employer delays the payment of accrued remuneration or breaches an essential term of the contract. It is based on Articles 325, 329, 353 and 656 of the Civil Code (AK). The conditions are that the claim must be mature, certain and concern a significant period of delay, so that the exercise of the right is judged to be in good faith and not abusive under Article 281 AK. So long as the withholding lawfully continues, the employer is in default and must pay the remuneration, while the employee may temporarily work elsewhere to cover basic needs.
2. What can I do if my employer is not paying my salary?
You have several options at your disposal, which may be combined. You may file a lawsuit and claim with interest the outstanding salaries plus additional compensation, declare the withholding of labour in writing, treat the systematic delay as a unilateral detrimental alteration of working conditions and seek severance pay, or lodge a complaint with the Labour Inspectorate and a criminal complaint for the criminal sanctions provided against the employer. If the employer is a merchant, you may even seek a declaration of bankruptcy. Choosing the right course of action depends on the amount owed, the employer’s solvency and your objective.
3. How do I correctly declare a withholding of labour without losing my job?
The withholding must be declared by a clear, express and individual written statement to the employer, specifying the grounds (which sums are owed, for which periods) and that the abstention will continue until full payment. A mere abstention without declaration is risky, as it may be construed as voluntary resignation or unjustified absence and lead to dismissal without compensation. It is recommended that the declaration be sent by extra-judicial notice through a bailiff, so that proof of service exists. A trade union or collective declaration is not in itself sufficient — an equal number of individual declarations is required.
4. When is the withholding of labour at risk of being deemed abusive?
Withholding of labour is a powerful tool, but it must be exercised in good faith. It is considered abusive when it concerns a small or disputed debt, when it is exercised by surprise without prior notice, when it causes disproportionate damage to the employer in relation to the amount of the claim, or when it is used as pressure for other purposes. The amount of outstanding remuneration, the duration of the delay, the certainty and liquidated nature of the claim, and the particularities of the business are all taken into account. If deemed abusive, the employer may lawfully terminate the contract without compensation, so legal preparation before the declaration is critical.
5. How long does judicial recovery of unpaid wages take?
The time depends on the procedure chosen. The declaration of withholding is immediate and produces effects from its service. For the judicial recovery of salaries, the lawsuit is filed before the competent Court of First Instance under the special procedure for labour disputes, which is faster than the ordinary procedure, and as a rule the hearing takes place within 8 to 15 months. In urgent cases, interim measures may be sought or a payment order issued — provided the debt is proven by documentary evidence — within a few weeks. Salary claims are subject in principle to a five-year statute of limitations, so timely action is important.
6. What role does the lawyer play in withholding of labour?
The lawyer first assesses whether the legal conditions are met and whether withholding labour is strategically advantageous for the employee, in order to avoid the risk of abusive exercise and loss of the post. The lawyer drafts the extra-judicial notice declaring the withholding, with a clear identification of the debts, ensures its lawful service and monitors the employer’s response. If no payment follows, the lawyer files a lawsuit for the accrued remuneration, applies for a payment order where appropriate, or resorts to interim measures. In parallel, the lawyer handles complaints to the Labour Inspectorate, criminal complaints for the applicable sanctions and, if necessary, the claim for severance pay due to detrimental unilateral alteration of working conditions.