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New Law Governing Employment Relations and the Establishment of a Labour Inspectorate
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New Law Governing Employment Relations and the Establishment of a Labour Inspectorate


On 2 September 1998, the Greek legal gazette published Law 2639 on "Regulations governing employment relations and the establishment of a Labour Inspectorate".

This law contains provisions on the following aspects of employment relations:

1. Specific forms of employment (telework, domestic work, etc.).

2. Part-time work: Some of the most important provisions on part-time work contained in the new law include a preference for part-time workers when the firm recruits workers for a full-time position, recognition of part-time employment when calculating years of service, the opportunities for part-time workers to participate in the firm's vocational training measures and equal social benefits compared with full-time workers in the firm.

3. Working-time issues.

4. Local employment agreements: in view of the need to promote the development of underdeveloped regions and to expand employment opportunities there, public-sector bodies, local authorities and the social partners are empowered to reach special collective agreements for the execution of concrete projects, the duration and conditions of application of which are to be set out in the agreement.

5. Creation of private job placement agencies. Natural persons and legal entities are permitted to set up private job placement agencies (so-called IGSEs) whose task is to find certain categories of jobs for domestic and foreign workers at the employer's cost. Among the preconditions for the setting up of an IGSE required by the new law is that the costs of placement by the IGSE are not borne by the employee.

6. Under the new law, a new body will be set up with the title of "Labour Inspectorate" (SEPE) under the auspices of the Ministry of Labour and Social Security. It will be directly accountable to the labour minister. Its main task is to oversee the application of the provisions of labour law and to identify and sanction infringements of labour law and illegal employment. Additional tasks include monitoring workers' social insurance and providing information and advice to employers and employees on the statutory provisions in force.

7. The law also contains regulations on the provision of medical benefits to unemployed persons aged up to 29; as of 1 January 1999, such persons will be able to apply for benefits in kind from the Social Insurance Office (IKA) in case of sickness.

8. Parental leave: a parent employed for at least one year with his/her current employer is entitled to take parental leave to care for the child for the period between the end of maternity leave and the time at which the child is three years and six months old. Each parent may take parental leave for up to three and a half months during this period. No wage or salary is paid during this time. Parental leave is granted by the employer on the basis of a ranking of the workforce in the firm drawn up every calendar year. This ruling also applies to employees in the public sector, legal public-law entities and local authorities and their bodies.


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