DISMISSAL DUE TO BUSINESS REASONS IN GREECE
Attorney-at-Law, LL.M, PhD Cand.
Under severe circumstances of economic and financial crisis, undertakings operating in
Greece have widely adopted measures of restructuring leading to redundancies due to
business reasons. While specific official statistics are not available, a major portion of
the skyrocketed unemployment in Greece (a record 27.8% in the first trimester of 2014,
and according to the last available data 20.8% in December 2017) should logically be
appointed to redundancies due to business reasons.
1. How are the causes that justify a redundancy or a dismissal due to business
There is no authentic/ex lege definition of the causes justifying a redundancy/dismissal
due to business reasons in Greece. Altogether, the issue at hand is primarily a judge-
made law. The Greek Supreme Court (“Areios Pagos”) steadily holds that “as far as
dismissals due to economic and technical reasons, such as among others r estructuring
of the departments or services of the underta king and the reduction of workforce for
reasons of economy that are forced by specific conditions faced by the undertaking, the
decision of the employer to deal with the apparent economic crisis of the undertaking is
not subject to judicial review”.
2. The business reasons that justifying the dismissal, must they concur inthe
entirecompany or only concur in the workplace where dismissal occurs?
In the Greek legal system, there is not a specific rule or provision to set the issue at
hand. Moreover, as far as this specific issue is concerned, there is not even settled case
law. Thus, every case will be decided in concreto and on a case by case basis, taking
into account the goals and general principles of labour law, such as the protection of the
employee as the weaker party etc.