Greece Enacts Law 5278/2026 to Strengthen Collective Labor Agreements
On February 1, 2026, Greece enacted Law 5278/2026, titled the "National Social Agreement for the Strengthening of Collective Labor Agreements." This legislation introduces significant reforms aimed at enhancing the framework governing collective labor agreements in the country.
Key Provisions of Law 5278/2026
- Co-signing of Sectoral Agreements: The law allows the General Confederation of Greek Workers (GSEE), a third-level trade union organization, to co-sign sectoral collective labor agreements. This provision enables GSEE to represent employees across various professions within the same sector, thereby broadening the scope and inclusivity of such agreements.
- Post-Expiry Effect of Agreements: The legislation reinstates the post-expiry effect of all normative terms of collective labor agreements. Specifically, after the expiry of an agreement and a three-month extension period, all its terms continue to apply to the employees until a new collective or individual agreement is concluded. This ensures continuity and stability in employment terms.
- Facilitation of Agreement Extensions: The law reduces the required coverage threshold for extending the application of collective labor agreements from 50% to 40%. Additionally, it allows for extensions without examining the quantitative criterion if the agreement is co-signed by GSEE and an employers’ organization of broader representation or nationwide scope. This change aims to simplify and expedite the extension process.
- Mediation and Arbitration Mechanism: A new mechanism is established to review the admissibility of unilateral applications for recourse to mediation and arbitration. Furthermore, the second level of arbitration before the Organization for Mediation and Arbitration is abolished, streamlining dispute resolution processes.
Implications for Employers and Employees
The enactment of Law 5278/2026 signifies a concerted effort by the Greek government to strengthen the role and effectiveness of collective labor agreements. By involving higher-level trade unions like GSEE in sectoral agreements, the law aims to ensure that a broader spectrum of employee interests is represented. The reinstatement of the post-expiry effect provides job security and maintains established working conditions, even in the absence of a new agreement.
Employers should be aware of the lowered threshold for agreement extensions, which may lead to more widespread application of collective agreements. Additionally, the streamlined mediation and arbitration processes are expected to facilitate quicker resolution of labor disputes, benefiting both employers and employees.
Overall, Law 5278/2026 reflects Greece's commitment to fostering a more robust and inclusive labor relations framework, promoting stability and fairness in the workplace.