Μajor reversal in labour relations

The implementation law of the mid-term program includes rough measures for employees:

* from January 1 2012 and until December 31 2015, the number of annual recruitments of permanent-contract public servants cannot exceed the “1 to 5” ratio (1 recruitment for 5 layoffs). Especially for 2011, it will be “1 to 10”
* regular staff employed by the state, a public entity and OTA may request a reduction of working hours by up to 50% with a corresponding reduction in salary, for a period not exceeding 5 years, determining whether they want to reduce the hours of daily service or the number of working days. Only the time of actual employment is taken as actual and pensionable public service for any legal consequence
 * the notion of “golden reserve” applies to any supernumerary personnel of private legal entities, who will continue to receive income equal to 60% of the basic salary for 12 months. Remuneration will cease if the staff engages in any form of contractual engagement.
* welfare benefits will be cut: unemployed insured persons receiving benefit for the first time, must have received either 80 daily wages per year in the last 3 years, or at least 200 in the two years before the termination of their employment, excluding the wages of the last 2 months. Also, they will not get the entire Easter or Christmas bonus if they have not been unemployed for 4 or 8 months respectively
* minimum working hours: private sector companies are allowed, for a certain period of time (of increased employment), to employ staff for 2 more hours on top of the 8, in exchange for time off or reduced hours at some other point. If unable to do so, the employee has the right to refuse the extra work and his refusal will not be against good faith. Such a refusal does not constitute grounds for termination of employment
 * fixed-term contracts will apply for young people of 18-25, for work experience, lasting up to 24 months and with an income at less than 20% than what is provided for a new employee
 * a special levy is introduced to combat unemployment: 2% on all public employees’ regular salary and bonuses ,as well as a 1% special levy for the welfare fund of public employees on regular salary and bonuses of all beneficiary employees in the fund
* pensions, including allowances paid by the Navy Pension Fund (NAT), as formed on 31-12-2010, will be reduced retroactively from 01-01-2011 at a rate of 6%
 * from 1-8-2011, LAFKA-type contribution will be imposed on early retirees under 60:

1. 6% for pensions from 1.700,01 to 2.300,00 euros
2. 8% for pensions from 2.300,01 to 2900,00 euros
3. 10% for pensions from 2.900,01 upwards

 The deduction stops the month after their 60th birthday.

* a special contribution for retirees receiving supplementary insurance, 3-10% of the total amount for pensions of 300,1 upwards, excluding those with non-institutional and total disability allowance
* a special account for unemployment is set up in OAED for the self- and independently-employed. The purpose is to aid in cases of proven termination of employment for at least three months. A monthly contribution of 10 euros is established from 01-08-2011, paid by the insured, self- and independently-employed in insurance agencies OAEE, ETAA, ETAP-MME in favor of the same industry
* the lump sum for those insured in the Department of Public Welfare and the PPC Personnel Sector of TAFTEKO is reduced by 10-15% retroactively from 1-1-2010 onwards.