December 22, 2024 5 min read
Ministerial Decision for the implementation of a Program for the Conversion of up to 40000 block paid to employees

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The Ministerial Decision for the implementation of a program for the conversion of up to 40000 block paid to employees was published in the Government Gazette.

The program for Conversion of up to 40000 block paid to salaried employees:

• subsidizes employer contributions up to 350 euros (or 175 euros for two employers). Provided that the employer wishes to convert the block into an employment contract • it lasts 12 months (with a subsidy) plus six months (with a commitment to maintain the employment contract) • sets as a condition for the companies that will join, not to dismiss any employee and not to reduce anyone's earnings during the three months before submitting the application for inclusion in the said program

More specifically, the ten main features of this program are as follows:

• Conversion from block to salaried work

Purpose of the program for Conversion of up to 40000 block paid to employees
The subsidy of the employment support of 40,000 paid with a Service Provision Card (s.p. Block).
It will be done by converting the contract for the provision of independent Services into an employment contract.
It concerns businesses and employers in the private sector in general, with the subsidy of the employer's contribution, with the incentive to enhance employment through the preservation of jobs for a period of 18 months.

• Subsidy of employer contributions with up to 350 euros / month

The amount of the subsidy is defined as the amount corresponding to the monthly employer's contributions for a period of 12 months as well as the corresponding employer's contributions of Christmas and Easter gifts and the holiday allowance. The amount is determined according to the period of employment and with a maximum of EUR 350 for each month of full-time employment.

• Subsidy of employer contributions with 175 euros / month for blockers with two employers

It is noted that, if the beneficiary is simultaneously employed by two employers with part-time or rotational employment, potential beneficiaries of the program are both employers who will hire him on a part-time or rotational basis with a maximum grant amount of 175 euros for each beneficiary.

In case the beneficiary is employed by two employers full-time in the first and part-time or rotational employment in the second, the potential beneficiary of the program is only the employer who will hire him full-time.

Beneficiaries may retain their status as self-employed throughout the duration of the programme, without being able to pursue a professional activity.

• Twelve plus six months the duration of the grant

The duration of the total program is eighteen 18 months, of which 12 months are for grants and the remaining six 6 months for commitment.

• Private and social enterprises can be integrated

The program is addressed to private enterprises, Social and Solidarity Economy Organizations (SSE) and generally private sector employers who regularly carry out economic activity throughout the country and employ paid employees with Service Provision Vouchers (s.p. block).

• No dismissal, no salary reduction three months before the application for affiliation

Necessary conditions for conversion of up to 40000 block paid to employees

A prerequisite for the inclusion of a business in the program is that it has not proceeded during the three months prior to the date of submission of the application for inclusion:

  • A June Refuktion Itch Staff
  • a reduction in the remuneration of potential beneficiaries as they appear in the independent services contract which has been posted on the special platform of the EFKA website.

The first condition also applies to the period from the date of submission of the application to the date of inclusion of the company in the program.

The second condition also applies to the period from the date of the company's inclusion in the program to the date of conversion of the independent services contract into an employment contract.

Staff reduction is considered to be:

  • the termination of the employment contract,
  • the change of employment status from full-time to part-time or rotational employment as well as
  • voluntary exit made on the initiative of the employer, through programs providing mainly financial incentives for voluntary exit.

The following shall not be considered as staff reductions in the three months preceding the date of submission of the application:

  • the termination of an employment contract due to retirement,
  • the termination of an employment contract of indefinite or fixed term (before its expiration) due to an important reason concerning the employee (lawsuit for a criminal act)
  • the expiry of a fixed-term contract
  • voluntary withdrawal
  • imprisonment and death.

• Which businesses are not eligible to join

  • All enterprises, bodies, offices and organizations which are governed, as regards the recruitment of their staff, by the provisions of law. 2190/1994 (Government Gazette 28/A/03.03.1994) and law. 3812 (Government Gazette 234/A/28.12.2009).
  • Branches or offices established in a country which is not a member of the European Union because it is not possible to control the cumulation of aid.
  • Offshore companies as well as companies whose corporate composition includes offshore companies because it is not possible to control the cumulation of aid.
  • KTEL S.A. and the owners or co-owners of their members.
  • Undertakings in respect of which recovery of previous State aid is pending.
  • Companies active in sectors to which the Regulation does not apply Regulation (EC) No 1407/2013 (Article 1).
  • Enterprises active in the fisheries sector (in primary fisheries and aquaculture).
  • Enterprises active in the primary production of agricultural products (plant and animal).
  • The nightclubs.
  • Seasonal businesses.
  • Businesses whose registered office is the employer's home (e.g. insurers, accountants , civil engineers, commercial agents, etc.) except for enterprises which, by the nature of their activity, employ staff outside their place of business (truck operating services, taxi operating services, plumbers, electricians).

• Which employees can benefit

Beneficiaries of the Program are paid with a Service Provision Voucher employees of a maximum of two employers, insured former OAEE, EBRD and ETAP-SMEs, provided that:

  • Their insurance is part of the provision of para. 9 of Article 39 of the Law. 4387/2016.
  • convert the above contract for the provision of independent services into an employment contract.
  • did not provide dependent work to the same employer in the twelve months preceding the date of the application for inclusion in the program.
    The contract with the contracting beneficiary companies of the above paragraph must be in force and posted on the special platform of the EFKA website at least three months before the submission of the application for inclusion of the business in the program.

• Which employees cannot join the program

Employees who will be employed exclusively, from the 22nd hour in the evening (start of working hours) until the 6th morning (end of working hours):.

  • partners in O.E., E.E., Ltd. and P.C.C., members of the BoDs in S.A., except for the members/partners of Social and Solidarity Economy Organizations (SSE)
  • legal representatives or managers of undertakings
  • members of cooperatives (except members of SCEs)
  • workers who are compulsorily placed under the provisions of n. 2643/1998.
    -employees will be employed in the context of the company's integration into any other aid scheme to cover its relevant contractual obligations. E.g. an investment project, which also subsidizes the wage and/or non-wage costs for these individuals, employees who will be employed by the beneficiary employers, in order to make their services available to another employer (secondary or indirect employer).
  • Employees who will be employed with a paid mandate.

• When can there be an extension of the Program for Conversion up to 40000 block paid to employees

It is possible to extend the grant period, by a maximum of 30 days, with an equal commitment by the company, not to dismiss staff, in case of:

-justified illness of an employee

-unpaid leave granted at the request of the worker

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