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Lecture Notes 2

Company law Notes

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Lecture Notes 2

Company law Notes

Uploaded by

paula
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LECTURE NOTES

18/10/2021

Individual labour law


• Part of law that regulates the relationship between the employer and
employee
• Labour law applies in both valid and invalid contracts (invalid; someone who
does not have permission to work e.g., if unfit to work and cannot prove
with the required documents)

Who is an employee?
• Person who carries out their labour in a subordinate position
o Subordination definition: obligation for employee to follow the place,
time, and manner of the employers’ instructions (all 3 elements must
be present)

Who is the employer?


• Free to supervise and control the employee
• Controls the place, time, and manner of employee

Subordination
Refers to the obligation of the employee to fol- low the directions of the employer
concerning the place, the manner and the time of work, to accept the supervision
and the control of the employer for the compliance with these directions. In order
for subordination to exist, the above obligation must exist.121 In conjunction with
his/her position and the duties, the employee develops initiatives and the above
obligation may be either broad or of limited nature.122 The type of the
remuneration and the way of its definition is without legal conse- quences,123
e.g. these are not criteria for the existence of ‘subordination’.

Sources of labour law


• Law:
o EU
o Constitution of Hellas 1975:
▪ Article 22, para 1: recognises the right to work for all citizens
and the duty of the state to protect this right
▪ Article 22, para 4: compulsory work is prohibited
▪ Article 22, para 2: collective bargaining
▪ Article 12, para 1b: right to equal pay
▪ Article 12, para 2: freedom of associations
▪ Article 23: protects trade unions and recognises striking
o Typical law
• Custom:
o Jurisprudence (case law- nonbinding)

Sources of occupational origins (autonomous sources)


LECTURE NOTES

• Collective agreements
• Arbitrational award

Conflicts between law and occupational origins


• Provisions of law prevail over collective agreement

Presumption of existence of a subordinate labour contract


• 9-month labour contract; Law 3846/2010 article 1- if you work 9 months
under the direction of 1 employer then the law assumes there is a
subordinate contract present to protect the employee
• Difficult to prove

Labour contract: As a rule, an individual labour contract is concluded


informally. It may be concluded orally or, even, tacitly.
The parties may agree on a certain type, e.g. a contract in writing. The law
requires the type of a private document in specific cases such as for part-time
employment, the renewal of a labour contract of definite period etc. Rarely, the
law requires the type of a public document.
Contravention of such legal requirements is not permitted; any such contravention
renders the contract void.
In all cases where a contract is entered into verbally, its written form is sim- ply
evidential of the hiring and of the conditions of the agreement.
What is an Employment

Types of labour contracts


1. Contract of independent services
• No subordination
• Difficult to distinguish

2. Contract of work
• Only the result and duration of the job is agreed by the employer
• Employer cannot interfere

3. Contracts for full-time jobs


• Contract can be concluded orally and tacitly
• Do not need to follow a certain type of contract
• 18 years and over – if under, requires special permission
• Principle of equality and non-discrimination must be abided by
• Personal data must be protected
• Employer has the obligation to communicate the essential terms of the
contract to the employee (if the employee is unaware e.g., when the
contract has been formed orally)
LECTURE NOTES

Collective agreement

They are a source of labour law, collective agreements acquire legal power,
even though they are not prod- ucts of the state legislature. In cases a
collective agreement is not achieved there may be an arbitration award.
Arbitration awards, acquire legal power, are assimi- lated with collective
agreements.

Jurisprudence
Jurisprudence, namely the previous decisions of courts, is not deemed to
be a ‘source’ of law in Hellas. Though jurisprudence may be significant to
the inter- pretation of legislation and in many cases, with its final broad
interpretation of labour law, has effectively contributed to the protection
of employees, the decisions of the courts are not binding on the
judgment of subsequent similar court cases.

Distinction between labour contracts and related contracts


Labour law regulated labour contracts, namely the dependent work contracts,
because of the need to provide special protection to the persons that provide their
work under a subordination regime. Contrary, it does not regulate contracts for the
provision of
work, when the work is not provided under the subordination regime. Such
contracts
are the following:
a) The contract for the provision of independent services.
b) Contract of work
c) Contract of company

25/10/2021- EMPLOYMENT RELATIONS

Parties to employment relations


1. Employer:
• Individual person or corporation under public or civil law
• If there is doubt on who an employer is, the person for whose profit the
work is offered
• Article 652 of the civil code; article 361 civil code; article 638 civil
code: initial employer, subsequent employer = the labour contract is
not terminated

2. Employee- natural or legal person


• Person who works under a labour contract in accordance with the kind
of work they offer
LECTURE NOTES

• When it comes to the termination of labour contracts, there is further


protection to the blue-collar employee; L.408/2021
• They are further distinguished into the following categories:

Blue collar employee White collar employee


person who provides the physical work person who provides mental work
e.g., construction worker

• Issues with distinguishing between white and blue collar as brain is used in
all work arguably so difficult to distinguish.
• Leading personnel: supervisors that direct employees fall into the category
of white-collar employees as they direct the employees. They have the right
to hire and dismiss and have the power to make decisions; International
Convention of Washington 29.10.1918 (according to this convention, they
are exempt of working hours, the provision of Sunday work and they do not
participate in trade unions. The reason for these exemptions because they
are in proximity with the employer, so they do not have the same needs of
protection as the other employees)
• More types of employees are:
o Homeworker: person who works in home e.g., babysitter
o Domestic workers: assists with the personal care of yourself or your
family. They are further distinguished into 2 categories: living
domestic workers (expenses covered by the employer which is why
the salaries may be lower. They usually are not part of a collect
agreement and are paid flexibly e.g., poorer neighbourhoods may be
paid lower than higher class) and non-resident care
▪ Hairdresser can fall into both categories of white and blue
collar
▪ Criteria for distinguishing categories: L.408/2021
1. Theoretical training
2. Expressing the initiative
3. Responsibility

Principle features of a labour contract

The employee is obliged to provide, under subordination, the work required by the
employer for a definite or indefinite period, while the latter is obliged to pay the
wage.The concept of the labour contract has at least five principal features:
• Contract is void if it goes against the rules of jus cogens: the court examines
the ex officio the invalidity of the contract. When there is an invalid
contract, the court declarers a de facto relation

1. Dependence of the employee on his/her employer

2. Obligation of the employee to perform the work

3. Obligation of the employer to pay wages


LECTURE NOTES

4. Additional secondary obligations of the parties

5. Duration

Types of labour contracts

There are different kinds of labour contract:


1. Typical and Atypical Labour Contract
2. Full-time and Part-time Employment
3. Labour Contract for a Definite or an Indefinite Period

Typical Atypical (non-typical)

• Contract that is for indefinite • Part-time job: can be indefinite


time or definite; it can be for some
days of the week and for some
hours (everything that is not full-
time work e.g., 5 days a week
and for 8 hours); article 38 L.
1892/1990 (part-time contracts
must be a written contract, state
the system of hours and provide
the hours of work- this is to
prevent the employer exploiting
the employee and changing the
hours and days continuously)

• Full time job because of the • Dismissal on the grounds of non-


stability offered by a steady acceptance by the employee of
income the employer’s proposal for part-
time employment is not valid.
LECTURE NOTES

• Part time work and additional • Remuneration is calculated in


work. The part time workers are the same manner (all the
under an obligation to provide stipulation of labour law applies)
additional work, providing hours
and additional salary has been
decided. The part time worker
may decline when the additional
work is to take part in a usual
manner (work that is on in
irregular basis)

01/11/2021

Employees must be protected: they face insecurity, they can be abused


by the employers

Terms that regulate employment relationships introduce rights in favour of the


employees with the aim to provide to the employee a minimum and absolutely
necessary protection. Such terms may be those that defined maximum work time
per day or week, those regulating minimum wage, severance pay etc. These terms
are terms of unilateral jus cogens, which mean that it is allowed with terms of col-
lective agreement or with an agreement between the employer and the employee
to form the relevant work terms in a more favourable manner for the employee,
but it is prohibited to form in an unfavorable manner. In that way, higher
remuneration may be agreed, but not lower, fewer work hours per day or week but
not more, etc.
In order to safeguard the protection of the employee, it is prohibited for the
employee to resign of the rights that the law sets in favour for him, concerning
terms of employment. It is also prohibited for the employee to resign of his rights
that are regulated with terms of jus cogens concerning any other issue. This
prohibition con- cerns any agreement or unilateral action of the employee which
bring the resigna- tion of the above rights when the contract is concluded or during
the execution of the contract or when the contract is terminated.
On the basis of the principle of the employee’s protection, when similar work
terms are regulated by law, a collective agreement and an agreement between the
employer and the employee, the provision that is more favourable for the
employee shall apply.

Law D1999/70 Successive employment contract


a/ Objective reasons
b/maximum total duration
c/number of renewals

It is justified
1/ By the kind of the provided work or by the activity of the employer
2/ Is related to training of the employee
LECTURE NOTES

3/ Is made in order to facilitate the transfer of the employee to a similar


occupation
4/ Is made in order to execute a specific work
5/ Is connected to a specific event
6/ Air transport enterprises

Teleworking L4808/21 Art 67


1/ Agreement
2/ Can be decided by employer to protect public health
3/ After employee’s application in case the employee faces a certain risk of his
health

The employer informs


1/ About the right to disconnect
2/ The additional expenses of the employee
3/ Who is going to provide the equipment their service
4/ Limitations of the use of the equipment
5/ Agreement for teleworking on call
6/ Protection of the privacy of teleworkers and protection of the professional
data

Temporary contract between employer agency and employee, we agree of the


essential working terms

08/11/2021

Obligations of parties
- These obligations arise from the terms of collective agreements, work
regulations, clauses of the labour contract (may not be less favourable than
the corresponding provision of the GNCA- general national collective
agreement)

Primary obligation of employee


- Supply of work (specific kind of work, timing, and place
- The agreement of these 3 things is regulated by law or GNCA; if these 3
things have not been agreed- managerial prerogative (must be exercised
fairly and this is the right of the employer to define and specify the supplied
work by defining the kind, the time of work, the place. It is forbidden to
exercise this right abusively))

Primary obligation of employer= supply of remuneration


- Secondary obligation of employee and employer = bona fides (good faith) –
welfare duty/ duty of care
Personal element of the provision : The employee is obliged to render his/her work
personally unless agreed otherwise
LECTURE NOTES

- Loan contract: the employee and a third party agree that the employee will
provide his/ her work to the third party for a definite or indefinite period of
time
• This contract does not affect the original labour contract between
the employee and the (first) employer
• The employer continues to bear liability for the employees’
remuneration of provisional leave
o Has the right to terminate the labour contract
• The third party:
o Obtains the right to claim the supply of work and to exercise
the managerial right concerning this supply
o Bears the cost of additional remuneration for possible
additional work, such as, overtime or Sunday work
• The employee:
o Is obliged to comply with the work terms applicable for the
employees of the enterprise of the third party (e.g., rules of
conduct and times for breaks etc.)

The place of work performance


- The place of work is defined by the labour contract, or the enterprise
regulation, or the managerial right
• The place of work does not necessarily coincide with the location of
the head office of the enterprise
- The place of work may be temporarily changed by an instruction by the
employer elsewhere than the usual base

The kind of work


- The duty of the employee is fulfilled when the employee provides the
certain kind of work which was agreed under the labour contract, which is
interpreted in accordance with custom and bona fides (good faith)

22/11/2021

Duties of the employer


USE BONA FIDES in order to explain them
1. Pay a remuneration: Article 648 para a civil code: employer is obliged to pay
the agreed remuneration and the duty of the real employment of the
employee (this is when the employer offers a real job with real tasks)
- Article 656 civil code: illegal for employee to demand work when there is a
force majeure. Employer has the right to reduce remuneration for anything
the employee took advantage of

2. Employ the employee: IMPORTANT ARt 6066 cc, ej earthquake if the


employer doest provides work employee gets the money. Tormenta de nieve
y no se puede ir a trabajar . Si llega tarde 20 mins y le echa como excusa
barata el employee tiene derecho a ir a court, el employer se lo puede
deducir del sueldo pero tiene que seguir pagando
LECTURE NOTES

3. Respect employers constitutional rights

4. Duty of care to the employee

5. Duty to protect the personality of the employee

6. Protection of the employees personal belongings

7. Obligation or equal treatment

8. Protection law several or moral harassment


9. Duty for the Protection of Personal Data
10. Specifically for the Surveillance of the Workplace with Cameras and Video
Surveillance, for the Surveillance of Telephones (Tapping) and of Computer
Systems and for the Use of Biometric Methods and Medical Examinations
11. Duty of Protection of Employees’ Life, Health and Safety
12. Duty to Protect Employees from Workplace Stress
13. Specifically for Accidents in the Workplace
14. Time Off for Finding New Employment

Duties of the employer

1. The Provision of Work


2. Duty of Loyalty: Expires at the end of the labour contract
3. Duty of Confidentiality: Duty of confidentiality: part of the duty of loyalty and
involves committing to not leak secrets of the company behind its back. This duty
also extends beyond the expiry of the labour contract
4. Duty Not to Compete with the Employer: Duty not to compete with the
employer: part of the duty of loyalty. it is illegal to work at competitive enterprises as
there is a danger that the secrets will be revealed to the competitor employer. Even if
you work with the competitor employer and no secrets are revealed, the original
employer has the right to fire the employee. Remains effective for a period after the
labour contract (in cases where there is a high salary)

5. Liability;
- Employee is responsible for any damage caused to the employer or the
enterprise because of negligence or misconduct
- Degree of liability is judged based on his skills and knowledge
- In cases where the job involves frequent damage e.g., waitresses, there will
be a reduced liability, or the employer will cover some of the liability
- Prohibition of smoking in the workplace
- Where there is a special moral duty, an employee can work on a voluntary
basis (without payment) for their family, for their partner and for their
political party
LECTURE NOTES

Obligation to respect the employees’ constitutional rights


- Article 2, para 1- human dignity for everyone
- Article 4, para 1 & 2- equality (and article 116 para 1 & 2, article 5 para 1)
- Article 5 (a)- information
- Article 9- family asylum
- Article 9 (a)- personal data: only necessary personal data will be shared;
employee has the right to lie with unnecessary personal information asked
by the employer
- Article 10- reference to the authorities
- Article 11, para 1- right to convene
- Article 12, para 1-2- association (right to participate in protests but must
inform the employer)
- Article 13, para 1- freedom of religious convictions (believe in whatever you
wish but in a way that does not cause damage to others)
- Article 14, para 1- freedom of opinion (can express opinions if it does not
cause harm to other employees doing their job)
- Article 17, para1- property
- Article 19, para 1- privacy of correspondence
- Article 21, para 1- family
- Article 22- work, collective agreements, arbitration awards
- Article 23- union rights, strikes

29/11/2021-

Working time: time during which the employee has the obligation to be present
in the workplace to provide work. The employer follows the labour contact (what
they have agreed) to decide the working hours.
Certain times that don’t constitute working time. In Greece, law provides 15
minutes break per 4 hours of work.
Legal working time- set out 8 hours in most cases, but may be extended to 9
hours a day. In banks, this is 7 hours. Employee must prove that overwork is so
problematic, in order to avoid working 9 hours.
Night work- 10pm-6am Night work is awarded more pay— 25% more of legal wage
Working time- Labour Law-Collective Agreements- Law
Weekly working time: 40 hours- 45 hours(5 days of the week- 1 hour extra per
day)- 48 hours(6 days of the week).
Overwork: working more than the designated 8 hours (9 hours is overworking). It
has a 20% bonus.

Overtime: different regulations, procedure for the employer to inform labour


inspector of the hours of over time and receive license. Cannot be extended by
more than 3 hours per day. Otherwise is illegal over time. Paid much more- 120% of
hourly wages.
If the employer does not get the permission from the labour inspector, when the
employer does not follow the procedure, he pays the employees 120%+ of hourly
wage.
LECTURE NOTES

Sunday- day off for many workers. Remuneration -75% more per hour.
Management of working times- L.4808/2021 art 59 25 days of holiday in Greece.
Employee is paid during his annual leave

13/12/2021 Exam!!
Termination of the individual labour contract:

Protection of the position of the employee: This means that the employer cannot
simply fire employees.
Pre conditions – Con compliance= invalidity of the termination.
Last measure
Employers ability to put the personnel in temporary lay-off. The obligation of the
employees for the provision of work is suspended, but they receive half of the
average of the usual remuneration of the last 2 months of regular employment. If
the economic activity of the enterprise has been decreased.
• Previous information and consultation with the representatives of the
employees/ with the total of the employees.

• Work by rotation in cases where the operation of the enterprise is


decreased- up to 9 months during the same calendar year.

• Previous information and consultation.

Different ways for the termination:


• The death of the employee

• The death of the employer

• The coincidence of the characters of the employer and the employee

• The coincidence of the characteristics of the employer and the employee in


the same person.

• The expiration of the definite period

Facts that do not terminate the labour contract:


• The fulfilment of the employee of all requirements for retirement.

• The bankruptcy, the failure of the insolvency of the employer.

• The dissolution of the enterprise or party of it.

• Military service of the employee if he has already provided his work for six
months (indefinite time labour contract).
LECTURE NOTES

• The change of the person of the employer

Certification of the work performed

Termination of definite period labour contract:

• Important reason, if there is no important reason the employment contract


cannot be terminated and it is invalid. This is because it was agreed that
there was a definite period. Employer has plans for his enterprise.
Important reason is a legal concept decided by the Supreme Court.

• E.g Substantial breach of the contractual obligations of the employee-


rejection of the provision of work, breach of the faith obligation, brutal or
abusive conduct towards the employer or his fellow workers.

• Economic problems of the enterprise is not an important reason.

• No severance pay

• No contractual exclusion of the termination for an important reason.

• No need for notice period

• No need for specific type

Preconditions for the lawfull dissmissal


• Social insurance

• In writing

• Severance pay (if the labour contract lasted at least 12 months)

Indefinite period labour contract:


Indefinite in law contracts are cases provided by the law that is dismissed
1. Discrimination of race, age sex… so in case of difirente

2. Vulnerate of legal rights ex, not paying for overtime

3. Contrary to a special provision of law

4. If they are contrary to law or collective law

5. Because of the employee exercise the collective rights (si hace huelga)

BURDEN OF PROOF The employer has to proof that the dissmisal was valid
LECTURE NOTES

If they are dismissed for a case no provided by the law has to go to court, si no
paga lo acordado el employee va a court y le tiene q pagar más de lo acordado

1. Lasted up to 12 months- the employee must be covered by social insurance


and the dismissal must be in writing.

2. Lasted more than 12 months- payment of the severance pay(it depends on


the monthly remuneration) Higher severance pay may be paid under
customary practises or the individual labour contract.

Calculation of the severance pay:


• On the basis of ordinary remuneration of the last month of employment
under the usual conditions of the dismissed employee.

Time for the payment of the severance pay:


• At the day of the termination of the contract.

• 4 808/21: 3 months after the termination.

Next week: discrimination and termination

20/12/2021-

10/01/2021- (17TH JAN EXAM)

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