April 23, 2024 5 min read
Seasonal workers – Financial support measures published in the Government Gazette

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Published the Joint Ministerial Decision (JMD) No. eco. 23102/477 on Financial Assistance Measures for Seasonal Workers - suspension of employment contracts of employees of enterprises - employers of the private sector significantly affected in the Government Gazette.

Suspension of employment contracts of employees with the right to mandatory re-employment in reopening businesses, of seasonal operation, during the summer tourist season 2020

Employers – businesses of main and non-main hotel and tourist accommodation and tourist buses, of seasonal operation, may suspend the employment contracts of part or all of the staff of their business, during the period from 1/6/2020 to 30/9/2020:
(a) for workers who have been or will be compulsorily re-employed, in accordance with Article 8 of the Law. Regulation (EC) No 1346/1983 (A' 46), in conjunction with the terms of sectoral collective agreements in force and
(b) for workers who have been or will be compulsorily re-employed, in accordance with para. 5 of Article 38 of the Law. Regulation (EC) No 1836/1989 (Government Gazette A' 79), in conjunction with the terms of collective agreements in force.

In any case, the above businesses – employers are obliged to re-hire, during the summer tourist season of the year 2020:

for (a) of this paragraph, the same number of employees who had on average in the two previous years (2018 – 2019) and in priority the employees, who were employed during the summer tourist season of the year 2019 and for (b) the same employees who were employed during the summer tourist season of the year 2019.

The employees of para. 1, whose employment contracts are suspended, are entitled to the special purpose compensation of the thirteenth article of the Legislative Act of 14.3.2020 (A' 64), as ratified by Article 3 of the Law. 4682/2020 (A’ 76).

The above businesses – employers who make use of the regulations of para. 1 of this article, are obliged not to make staff reductions by terminating employment contracts during the period from 1/6/2020 to 30/9/2020 and in case of their realization, these terminations are invalid.

Seasonal workers with the right to mandatory re-employment in seasonal businesses, which will not reopen during the summer tourist season 2020

Seasonal employees of employers of main and non-main hotel and tourist accommodations and tourist buses, seasonally operating, which will not reopen during the summer tourist season 2020, with the right of mandatory re-employment, according to article 8 of Law No. Regulation (EC) No 1346/1983 (Government Gazette A' 46), para. 5 of Article 38 of the Law. 1836/1989 (A' 79), in combination with the relevant terms of collective labor agreements that are in force, are beneficiaries of the special purpose compensation, for the period from 1/6/2020 to 30/9/2020.

Special purpose remuneration

Employees of enterprises of main and non-main hotel and tourist accommodation and tourist buses, whose employment contract is suspended, are beneficiaries of a special purpose allowance of EUR five hundred and thirty-four (534) per month, for the period from 1/6/2020 to 30/9/2020, if they do not have an employment contract with another employer.

In the event that the suspension of an employment contract is permanently revoked, in accordance with the provisions of Article 5 of this Chapter, the special purpose remuneration shall be calculated in proportion to the days of suspension.

The special purpose remuneration is non-deductible, tax-free and cannot be set off against any debt.

Obligation to revoke suspensions of employment contracts and other arrangements

Businesses – employers of main and non-main hotel and tourist accommodation and tourist buses are obliged to permanently revoke the suspension of the employment contracts of part or all of the employees, based on the occupancy rate of the business, gradually as follows:
i) upon completion of 20% of the occupancy, permanent revocation of the suspension of at least 1/3 of the employment contracts of the above employees,
ii) upon completion of 50% of occupancy, permanent revocation of the suspension of at least 2/3 of the employment contracts of the above employees,
iii) upon completion of 80% of the occupancy, permanent revocation of the suspension of all employment contracts of the above employees.

The above businesses - employers may make use of the "COOPERATION" Mechanism of article 31 of the law. 4690/2020 (A' 104), that is, to subject to this mechanism employees whose suspension of employment contracts has been permanently revoked and whose employment contracts are full-time until 30/9/2020, subject to the provisions of the Joint Ministerial Decision implementing article 31 of the Law. 4690/2020 regarding the procedure for inclusion in the "COOPERATION" Mechanism and the statements of final revocations of the suspensions of employment contracts.

Businesses - employers in this case are obliged to declare the permanent revocation of the employment contracts of their employees in the specially designed form in the "ERGANI" CP.

Seasonal workers - Extraordinary compensation of seasonal workers of the tourism and food industry without the right to mandatory re-employment

It was also approved to grant a monthly extraordinary allowance to any seasonal worker in the tourism and food industry who cumulatively meets the following conditions:
(a) has been employed in the year 2019, full-time or part-time with no obligation to be re-employed in accordance with the applicable provisions;
(b) subsidized on the basis of ca. b' of par. 2 of Article 4, in conjunction with para. 9 of Article 6 of the Law. Regulation (EC) No 1545/1985 (Government Gazette A' 91) and received:
i. regular unemployment benefit, with a duration of three (3) months and five (5) days during the period from September 2019 to February 2020 or
ii. regular unemployment benefit, the duration of which according to para. 9 of Article 6 of the Law. Regulation (EC) No 1545/1985 was extended by one (1) month during the period from September 2019 to February 2020.

The extraordinary allowance amounts to the amount of the last monthly unemployment benefit received by the seasonal worker and is paid monthly for the months of June, July and August 2020 to the beneficiary, as long as he remains registered unemployed
in the unemployment register of the OAED for the above period.

The special allowance shall be exempt from any tax, fee, contribution or deduction in favour of the State or a third party, including the special solidarity contribution referred to in Article 29 of the Law. 3986/2011 (A' 152), is not seized or set off against established debts
to the State, legal entities under public law, Local Government Organizations, legal entities of the latter and insurance funds, as well as not seized by credit institutions for debts to them or offset against debts to credit institutions and is not counted in the total, actual or imputed, family income.

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