The termination is deemed valid provided that it is made in writing, the severance pay due has been paid, and the employment of the dismissed worker has been registered in the payrolls maintained for IKA or the dismissed worker has been insured. Payment of the statutory severance pay must be made simultaneously with the termination of the contract, except in the case of ordinary termination, where payment is made at the expiry of the notice period.
Failure to comply with even one of the above formalities of dismissal renders the termination null and void and places the employer in default (mora creditoris) as regards acceptance of the employee’s services.
However, in accordance with the provisions of paragraph 5 of Article 66 of Law 4808/2021, where the severance pay has indeed been paid but the termination of the employment contract is defective on one of the other grounds, then if the employer remedies the formal error within one (1) month of service of the relevant lawsuit or of the submission of a request for resolution of a labour dispute, the termination is deemed valid. Where the fulfilment of those conditions occurs after the said deadline, such fulfilment is regarded as a new termination and the previous one as non-existent. However, in case of payment of an insufficient amount of severance pay due to manifest error or reasonable doubt as to the basis for its calculation, the nullity of the termination is not recognised; instead, supplementation of the severance pay is ordered.
As regards the employer’s obligation to declare the termination of the employment contract, by electronic submission of the relevant form, to the ERGANI Information System within four (4) days from the day of termination (Article 38 of Law 4488/2017), it is clarified that the omission of this obligation does not render the termination invalid, but entails sanctions for the employer.
In addition to the above formal requirements, and notwithstanding that termination of the employment relationship does not require justification (is non-causal), the employer’s right is not unrestricted but is subject to the limitations of Article 281 of the Civil Code (AK) on abuse of rights, and must not exceed the limits of good faith, morality, and the social or economic purpose of the right.
Furthermore, there are cases in which termination of the employment contract is expressly prohibited by law. Paragraph 1 of Article 66 of Law 4808/2021 groups together the cases of nullity of termination of the employment contract and includes in a single provision instances of protection of employees from dismissal (Protection from dismissals). For these cases, and in accordance with paragraph 2 of Article 66 of Law 4808/2021, the framework for protecting employees is broadened: where the employee proves before a court factual circumstances capable of supporting the inference that the dismissal took place for one of the specified reasons, it falls upon the employer to prove that the dismissal did not take place for the alleged reason.
In the event of an invalid termination, the employee may seek judicially either the recognition of the nullity of the termination or the payment or supplementation of the severance pay. The lawsuit for nullity of the termination is inadmissible if not served within three months of the dismissal, while the lawsuit for payment or supplementation of severance pay is inadmissible if not served within six months from the moment the severance pay became due (Article 6 of Law 3198/1955).
By paragraph 3 of Article 66 of Law 4808/2021, a new arrangement is introduced providing that the court, instead of any other consequence, upon the request of either the employee or the employer, awards in favour of the employee an additional compensation amount, which may be neither less than three (3) months’ regular earnings nor greater than twice the statutory severance pay due to termination at the time of dismissal. The request is submitted by the employee or the employer at any stage of the proceedings, at first or second instance. In determining the amount of additional compensation, the court takes into account, in particular, the gravity of the employer’s fault and the financial and economic situation of the employee and the employer.
The employee may also terminate the employment contract of indefinite duration and, if a salaried employee, has the obligation to give notice of such termination for a period equal to half (½) of that prescribed by law for the employer in case of ordinary termination. However, this period may in no case exceed three months, nor may the compensation owed in the event of breach of the notice obligation exceed three months’ pay (Article 4 of Law 2112/20).
Voluntary resignation by the employee is declared by the employer, electronically, in the ERGANI Information System, no later than four (4) working days from the day of the employee’s departure. The declaration must be accompanied either by an electronically scanned form signed by both parties or by an extra-judicial notice from the employer to the employee, informing them that voluntary resignation has occurred and that this will be declared in the ERGANI System. In the latter case, the employer’s extra-judicial notice is served on the employee no later than four (4) working days from his voluntary resignation, and the declaration is made on the next working day after service of the extra-judicial notice. If the employer does not comply with the declaration obligations regarding voluntary resignation in a timely manner, including the submission of the accompanying documents, the employment contract is deemed to have been dissolved by the employer’s irregular termination (Article 38 of Law 4488/2017).
- See also article Termination of Employment Contract
- See also article Severance Pay
- See also article Modification of Employment Terms
- See also article Withholding of Labour
- See also article Annual Regular Leave
- See also article Employee Remuneration
- See also article Overwork – Overtime
- See also article Employer Obligations
FREQUENTLY ASKED QUESTIONS ON TERMINATION OF EMPLOYMENT CONTRACT
1. When is my dismissal by the employer invalid?
The termination of the employment contract must be made in writing, accompanied by payment of the statutory severance, and the employee must have been duly registered with social security. If even one of these conditions is missing, the dismissal is invalid and the employer is in default (mora creditoris) as regards acceptance of the employee’s services.
A termination is also invalid where it breaches Article 281 of the Civil Code (AK) on abusive exercise of rights, as well as where it falls within the prohibitions of Article 66 of Law 4808/2021 (dismissal of a pregnant employee, a recent mother, on grounds of trade union activity, on account of reporting incidents of violence, etc.). In such cases, the employee may seek recognition of the nullity and default wages.
2. What can I do if I was dismissed without severance pay?
The employee has two main options. On the one hand, they may bring an action for recognition of the nullity of the termination, claiming default wages and reinstatement. On the other hand, they may accept the dissolution of the contract and bring an action for payment or supplementation of severance pay.
In parallel, there is the possibility of submitting a labour dispute request to the Labour Inspectorate, which operates as a conciliation body and may lead to a faster resolution. Pursuant to Article 66(3) of Law 4808/2021, the court may award additional compensation ranging from three months’ earnings to twice the statutory severance pay, depending on the gravity of the employer’s fault.
3. How much time do I have to challenge the dismissal?
The deadlines are strict and preclusive. The action for recognition of the nullity of the termination must be served on the employer within three (3) months of the date of dismissal, otherwise it is inadmissible. The action for payment or supplementation of severance pay must be served within six (6) months from when the severance became due (Article 6 of Law 3198/1955).
If these deadlines lapse, the employee loses the right to judicial enforcement, regardless of how well-founded their claims may be. For this reason, prompt contact with a lawyer, ideally within the first weeks after dismissal, is critical.
4. What documents do I need to assert my rights?
Essential documents include the termination notice, the employment contract (if in writing), payroll statements for at least the last year, hiring and resignation declarations from the ERGANI Information System, and the earnings certificate. Also useful are EFKA insurance stamps and any evidence proving actual length of service and earnings.
Where the dismissal is likely abusive or prohibited (e.g. on grounds of pregnancy, trade union activity, or because the employee reported unlawful practices), evidence is also gathered (messages, witnesses, medical certificates, trade union membership documents) supporting the actual reason for the dismissal.
5. What are my chances of prevailing in court?
The chances of success depend on the specific facts of the case. Where a formal defect is established (lack of written form, non-payment or insufficient severance, lack of insurance), nullity is generally robust, although the employer has a one-month period from service of the lawsuit to remedy the error under the terms of Law 4808/2021.
In cases involving protected categories of employees, the law shifts the burden of proof to the employer, provided the employee puts forward sufficient indications. In abuse-of-rights cases, more comprehensive proof is required. A realistic assessment of the prospects can be made only after review of all documents and factual circumstances.
6. What is the role of the lawyer in dismissal cases?
The lawyer first examines the lawfulness of the termination, calculates the correct severance pay based on length of service and actual earnings (including overtime, allowances, and bonuses), and selects the procedural strategy: extra-judicial notice, labour dispute before the Labour Inspectorate, action for nullity, or action for severance pay.
Subsequently, the lawyer files the lawsuit before the competent Single-Member Court of First Instance under the special procedure for labour disputes, represents the employee at the hearing, negotiates settlement solutions, and submits a request for the award of additional compensation under Article 66(3) of Law 4808/2021. The firm’s experience in labour cases ensures that every deadline is observed and every lawful claim is pursued in full.