Background information

By virtue of Law 4690/2020, (Art. 31, οικ.23103/478/13.6.2020, Circular οικ. 26400/605 a special labour support mechanism, named ''SYNERGASIA'', has been established aiming to support employers to maintain the same headcount of full-time employees. Beneficiaries include full-time employees and all businesses that present at least 20% reduction of sales, in comparison to the reference month and depending upon the month of participation to the mechanism. The duration of the measure starts 15 June 2020 to 15 October 2020, and exceptionally until 31 December 2020.

Content of measure

By virtue of Law 4690/2020, (Art. 31, οικ.23103/478/13.6.2020, Circular οικ. 26400/605 a special labour support mechanism, named ''SYNERGASIA'', has been established. The mechanism stipulates the ability of enterprises to reduce the weekly working hours of all or part of the employees by up to 50%, without their employment contract being converted to part-time.

The mechanism applies only to full-time employees on the date of the law's publication.  Employees included in the mechanism are entitled to receive an additional support on top of their wage from the Greek state amounting to 60% of their net salary corresponding to the time where they do not provide any work. In case the net earnings of the employees, after the above adjustment, are less than the statutory minimum wage, the difference is covered by the state.

Τhe above mentioned employees are also entitled to receive annual leave and Christmas allowance proportion by the state, calculated upon the 60% of the employee state aid and the corresponding non working period. The social security contributions are covered in full by the employer both for the working and non working periods, unless explicitly regulated otherwise, as in art. 31 par. 5a of the Law.  Employers are not allowed to terminate the employment contracts of employees who joined the mechanism and if so, such termination shall be considered as null and void.

Employers shall also maintain the same nominal salaries of the employees for as long as the employees participate the mechanism. To be enrolled to the SYNERGASIA mechanism, the employers shall submit a statement to the online platform named ''myBusinessSupport'', stating their gross income in relation to the turnover cycle, depending on the month of participation to the SYNERGASIA mechanism. The remuneration of the employees, which corresponds to 60% of their reduced net salary corresponding to the hours they do not provide work, is paid within the first ten days of the month following the implementation of the mechanism. Beneficiaries include full-time employees and all businesses that present at least 20% reduction of sales, in comparison to the reference month and depending upon the month of participation to the mechanism. The duration of the measure starts 15 June 2020 to 15 October 2020, and exceptionally until 31 December 2020.

Use of measure

According to a study issued by the National Institute of Labour and Human Resources -NILHR – (Thematic Bulletin No. 4 - March 2021), the number of employees who entered to "SYN-ERGASIA" STW scheme from June 2020 when it was institutionalized until February 2021 does not exceed the 3.4% of the total number of wage earners (68,364 persons), with significant variations per month band variations in the length of time they have joined the scheme. The average salary replacement (part of their salary) by the “SYNERGASIA” is €247 per month. The total amount of state coverage of the part of the wages for workers who have joined the Mechanism until February 2021 was amounted at €69,798 million.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

No available answer.

Views and reactions

Most probably supportive from the part of employers, disagreement on the part of trade unions.

Sources

• 26 January 2020: Amendment of No. Eco. 23103/478/13-6-2020 Joint Ministerial Decision "Determination of the framework "SYN-WORK"" (B' 2274), as applicable. (Τροποποίηση της υπ' αρ. οικ. 23103/478/13-6-2020 κοινής υπουργικής απόφασης «Καθορισμός του πλαισίου εφαρμογής του Μηχανισμού ενίσχυσης της απασχόλησης "ΣΥΝ-ΕΡΓΑΣΙΑ"» (Β' 2274), όπως ισχύει) (www.taxheaven.gr)
• 01 June 2020: Law 4690 / 2020 (OGJ 104, 30.05.2020) (www.e-nomothesia.gr)
• 19 February 2021: law 4778/2021 (www.taxheaven.gr)
• 11 March 2021: NILHR – EIEAD-Thematic Issue 4-Employees under suspension (Ενας χρόνος πανδημίας Εργαζόεμνοι με αναστολή σύμβασης εργασίας= (www.eiead.gr)
• 01 July 2021: Amendment of the Ministerial Decision on "Defining the framework for the implementation of 'SYNERGASIA' mechanism (www.taxheaven.gr)
• 30 December 2021: Reactivation of Employment Contract Suspension (www.moneyreview.gr)