In implementation of EU Directive 2022/2041, aimed at strengthening collective bargaining coverage across Member States, the Greek Ministry of Labour Affairs and the national social partners concluded the Social Agreement for the Promotion of Collective Labour Agreements in November 2025.
In line with the Action Plan established for the period 2026-2030, Law 5278/2026, enacted on 16.02.2026, gives statutory effect to the Social Agreement and introduces significant amendments to the Labour Code, as summarised in our Newsletter.
Conclusion of sectoral collective labour agreements
Competence of G.S.E.E. to co-sign sectoral collective agreements
The General Confederation of Greek Workers (G.S.E.E.) is allowed, for the first time, to participate in sectoral collective bargaining. The law provides that sectoral collective labour agreements may also be co-signed by G.S.E.E., upon invitation by the competent employees’ trade union organisation.
Determination of the scope of sectoral collective labour agreements
The Law requires sectoral collective labour agreements to include the elements necessary for the clear determination of their scope of application, including the Tax Activity Codes (KAD) of the relevant sector.
Extension of scope of collective labour agreements
Reduction of coverage threshold
The law facilitates the extension of collective labour agreements to the entire sector or profession by lowering the required employee coverage from 50% to 40%.
Under the new regime, a collective agreement can be declared as mandatory for the entire sector or profession, once it already binds employers who employ more than 40% of the employees in the sector or profession (instead of 50% which was required up to now), following an application submitted by any of the parties bound by the agreement to the Minister of Labour Affairs.
Extension without assessment of the quantitative threshold
A collective labour agreement can be declared as mandatory without assessing whether the 40% threshold is met, if co-signed by G.S.E.E. and the most representative or national employers’ organisation in the relevant sector.
Post-expiry effect of collective labour agreements
Reinstatement of full after-effect
The law reinstates the full post-expiry effect of all normative terms of collective labour agreements, a protection that had been limited in Greece since 2012.
When a collective agreement expires, its terms continue to apply in full to all covered employees for a period of three months.
After this three-month statutory extension period, under the previous regime only the basic salary and specific allowances remained binding.
Now, under new Law 5278/2026, all normative terms of an expired collective agreement will continue to apply and remain binding on the employer until a new collective or individual employment agreement is concluded.
Coverage of new hires
The new Law also provides that, during the initial three-month statutory extension period, the terms of the expired agreement also cover any employees hired during such extension period.
Simplification of trade union and employers’ organisations registry requirements
Reduction of required data for registration
The Law simplifies the information required for registration in the General Registry of Employee Trade Union Organisations (GE.MI.S.O.E.) and the General Registry of Employer Organisations (GE.MI.O.E.), reducing such information to the absolutely necessary.
Consequences of non-registration
Under Law 5278/2026, the previously broader restrictions imposed on trade unions that failed to register in GE.MI.S.O.E. or update the required information are now limited to the suspension of their rights to request the extension of a collective labour agreement and to apply for mediation and arbitration. All other rights, including concluding collective agreements, remain fully valid regardless of registration.
Mediation and Arbitration
Admissibility review of unilateral recourse to mediation and arbitration
The Law establishes an Admissibility Review Committee within the Mediation and Arbitration Organisation (O.ME.D.), with the competence to review the admissibility of unilateral applications for mediation and arbitration and issue a decision within 15 working days from submission.
The decision can be challenged before court within 10 days from notification.
Elimination of second-tier arbitration
The Law abolishes second-tier arbitration before O.ME.D., while arbitration awards can be directly challenged before court within 10 days from notification.