Every employer has the managerial right, which enables them to take all necessary action in order to determine the operating conditions of their business, particularly regarding the place, manner and time of employment of their staff. This right is limited by good faith, business custom and its social and economic purpose pursuant to the Civil Code (AK). It is frequently observed that the employer’s actions infringe upon the rights of the employee, with the result that the employee is placed in a less favourable position, either materially or morally. In such cases there is the so-called unilateral detrimental change of the terms of employment. This change must concurrently be unilateral, detrimental, definitive and must abolish contractual rights of the employee.
A unilateral change is one imposed by the employer without the employee’s consent. However, where the employment contract contains gaps, the regulation of which is subject to the employer’s discretion, or where it is agreed from the outset that the employer has the power to unilaterally modify certain terms, then there is no longer a unilateral but rather an agreed change of the terms of employment, since the parties have already agreed upon this at the conclusion of the contract. Consequently, the employer is in principle entitled to unilaterally change anything not specified in the employment contract, or may even provide in the contract itself for the possibility of unilateral modification of terms. In such cases, every change is mutually agreed and therefore lawful (Areios Pagos 1370/2010, 315/2015).
A unilateral change is deemed to be every modification of the terms of employment by the employer made without the latter having a right to such modification under the law, the individual employment contract or the works regulations, nor falling within the power deriving from his managerial right to regulate all matters relating to the organisation and operation of his business (or made in abuse of the managerial right – Article 281 of the Civil Code (AK)). Areios Pagos, Civil Section B2, Judgment 216/2017.
- See also article Termination of Employment Contract
- See also article Severance Compensation
- See also article Change of Employment Terms
- See also article Withholding of Labour
- 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 CHANGES TO EMPLOYMENT TERMS
1. What does a unilateral detrimental change of employment terms mean?
It refers to any modification of the terms of the employment contract imposed by the employer without the employee’s consent, which places the employee in a less favourable position, either materially or morally. Common examples include reduction of remuneration, demotion to lower duties, transfer of place of work to a distant city, reassignment to a night shift, or removal of responsibilities.
To be characterised as unlawful, the change must be unilateral, detrimental, definitive and must abolish contractual rights. Where the employer exceeds the limits of their managerial right, they act abusively under Article 281 of the Civil Code (AK), and the employee acquires specific protective rights.
2. What can I do if my employment terms are changed adversely?
The employee has three basic options. First, to expressly or tacitly accept the change, in which case it becomes binding. Second, to continue working under the original terms and bring a lawsuit seeking enforcement of the contract and payment of the remuneration owed. Third, to treat the change as an irregular termination of the contract by the employer and claim the full severance compensation.
In parallel, the employee may exercise the right to withhold labour or file a complaint with the Labour Inspectorate. The choice of the most appropriate course of action depends on the nature of the change and the employee’s interests.
3. Within what time must I react to the change?
There is no strict deadline for filing a lawsuit; however, the claim is subject to the general five-year limitation period for claims arising from dependent employment. Delay, though, may be interpreted as tacit acceptance of the change, particularly if the employee works for a long period under the new terms without reaction.
For this reason, immediate written protest to the employer by way of an extra-judicial notice is recommended, which records the lack of consent and safeguards the employee’s rights. If the change is treated as irregular termination, the right to claim severance compensation is barred after three months.
4. What documents do I need to assert my rights?
You will need the original employment contract, any amendments, the notifications of hiring and changes filed on the ERGANI system, the monthly payroll statements, payment receipts and bank records. Equally important are any written instruction from the employer regarding the change, emails, messages, workplace announcements and certificates of prior service.
Witness statements from colleagues familiar with the actual conditions are useful, as are the internal works regulations or the applicable collective labour agreement. Evidence-gathering should take place immediately, before any items are lost or the situation in the workplace changes.
5. What are the prospects of success of my lawsuit?
The case-law of Areios Pagos (AP) is consistently protective of the employee where actual deterioration of the employment terms is established. In particular, reductions of remuneration, demotions and transfers without operational necessity are as a rule held to be unlawful. By contrast, changes which fall within the managerial right or are expressly provided for in the contract are difficult to overturn.
The outcome depends on the wording of the contract, the existence or otherwise of a unilateral-modification clause, the degree of harm and the economic or operational justification advanced by the employer. An assessment of the prospects can only be made following an individualised review of the file.
6. What is the role of the lawyer in such cases?
The lawyer first assesses whether the change is in fact unlawful, examining the contract, the works regulations and the collective labour agreement. They draft an extra-judicial notice of protest, negotiate with the employer towards a settlement and, where necessary, file a lawsuit before the competent Court of First Instance, seeking a declaration of unlawfulness, payment of remuneration differences or severance compensation.
The Law Firm ZIAMPARAS D. & ASSOCIATES undertakes the protection of the employee across the full spectrum of labour disputes, with a strategy tailored to their needs and aimed at the maximum possible satisfaction of their claims.