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Coronavirus in Greece – C. Vroutsis : 3 work reinforcement axes – Who will be subsidized with 60% – Which employers are included

By reducing turnover 20% regardless of KAD, businesses are included. Full-time employees are subsidized with 60%.

Design in 3 The Minister of Labor and Social Affairs announced that the axes for the strengthening of the work in the second phase of the pandemic, Yannis Vroutsis. At the heart of the new measures is the Employment Enhancement Mechanism "SYN-ERGASIA" which can include all companies whose turnover has been reduced at least 20% during the crisis………..

The mechanism provides :

  • the employer's right to reduce the working time of the full-time employee up to 50%, will be exercised without changing the type of employment relationship and
  • replacement by the state against 60% of the employee's income for the time the employee will not be working
  • if the net remuneration after the above adjustment falls short of their minimum wage 650 euro, the difference will be covered by the state as a whole

The mechanism will be implemented from June 1 to September. The partnership between state and business lies in the fact that the state will cover it 60% of the salary they will lose by reducing their working time. Safety limit will be the basic salary, as the final amount of employees will not be able to fall short of them 650 euro.

The three pillars are :

1. Extension of contract suspensions for 100% employees, for all businesses that remain closed, but also for businesses in the tourism industry, of catering, of Transportation, of culture and sports affected in June and July. Employees will receive a special proportional compensation up to 534 euro.

2. "SYN-ERGASIA" Employment Enhancement Mechanism. This is the mechanism, which, as the "Sunday Nation" has revealed, will subsidize 60% the loss of income that the employee will have when his working time is reduced 50% (safe operation personnel). If the net remuneration after the adjustment falls short of their minimum wage 650 euro, the difference will be covered by the state as a whole.

The Employment Enhancement Mechanism enters into force for the period from 1 June to 30 September 2020 by extending its time if and when needed. All companies in the country that show a decrease in their turnover will have the right to participate in this mechanism., at least 20%, during the previous period, regardless of KAD. The mechanism will also include companies operating for the first time and have not recorded revenue in recent months..

The mechanism will cover all existing full-time employees. The mechanism will also apply to seasonal businesses. All full-time employees will be eligible to participate, up to the number of full-time employees held in the same month last year.

It will not be allowed to change the employment relationship from part-time to full-time, in order for the company to receive the benefit of participating in the mechanism.

The employer's right to reduce the working time of the full-time employee up to 50%, will be exercised under the strict condition that the type of employment relationship will not change. The state undertakes the obligation to replace 60% of the employee's income for the time the employee will not be working. Furthermore, in case the net remuneration after the above adjustment falls short of the minimum wage, the difference will be covered by the state as a whole.

3. Reinforcement of seasonally employed and unemployed

particularly, granted - as a monthly financial aid- the seasonal unemployment benefit until the month of September 2020 to about 120.000 seasonally unemployed.

In detail, the new measures are as follows :

1the Axis

Expansion of the existing legal framework in the months of May, June and July.

MAY

The right to suspend workers' employment contracts has already been extended to May.

Businesses that are reopening have the potential to maintain even that 60% of their employees on suspension.

Simultaneously, businesses that remain closed, as well as all businesses in the tourism industry, of catering, of Transportation, educational, of culture and sports can maintain up to 100% of their employees on suspension.

Employees whose contracts remain suspended will receive special height compensation 534 euro, in proportion to the days of suspension and the state will cover their insurance contributions, calculated on their nominal salary.

also, and in May we extend the possibility of suspending the payment of insurance contributions for employees of all affected companies.

JUNE

For the month of June, we are extending the possibility of suspending employment contracts by a percentage 100% employees, exclusively for those businesses that remain closed, but also for businesses in the tourism industry, of catering, of Transportation, affected culture and sports.

Suspended workers are entitled to special compensation for the amount of the allowance 534 euro, by analogy of the days of suspension and full coverage of their insurance contributions on their nominal salary.

However, I must point out that in June the possibility of suspending the payment of insurance contributions for all companies ceases to be valid..

JULY

For the month of July we will extend the possibility of suspending employment contracts in percentage 100% employees, but only for businesses in the tourism industry, of Transportation, affected culture and sports.
Suspended workers are entitled to special compensation for the amount of the allowance 534 euro, in proportion to the days of suspension and full coverage of insurance contributions on their nominal salary.

2the Axis

Employment Support Mechanism in the form of financial support for short-term work "SYN-ERGASIA"

By entering the new phase of labor market support, we are creating for the first time a mechanism for financial support for employees., who will return to a work environment with new data. The new conditions may affect the working hours and consequently the income of the employees. That is why, as a State, we do not remain inactive! We will stand by their side and make up for their income, where necessary. And this will be done through the employment support mechanism "SYN-ERGASIA".

The Employment Enhancement Mechanism enters into force for the period from 1 June to 30 September 2020 by extending its time if and when needed. All companies in the country that show a decrease in their turnover will have the right to participate in this mechanism., at least 20%, during the previous period, regardless of KAD. The mechanism will also include companies operating for the first time and have not recorded revenue in recent months.. The mechanism will cover all existing full-time employees.

The mechanism will also apply to seasonal businesses.
All full-time employees will be eligible to participate, up to the number of full-time employees held in the same month last year.

It will not be allowed to change the employment relationship from part-time to full-time, in order for the company to receive the benefit of participating in the mechanism.

The employer's right to reduce the working time of the full-time employee up to 50%, will be exercised under the strict condition that the type of employment relationship will not change.

The state undertakes the obligation to replace 60% of the employee's income for the time the employee will not be working.

Furthermore, in case the net remuneration after the above adjustment falls short of the minimum wage, the difference will be covered by the state as a whole. Simultaneously, the employer has the obligation to cover all the employee's insurance contributions, calculated on the original nominal salary.

As long as the employee is on reduced employment, the employer is prohibited from terminating the employment contract and reducing the employee's nominal salary.

At this point I will remind you that, from June 1st 2020 the reduction of all insurance contributions for full-time employees against 0,90 points, as provided for in Article 48 of Law 4670/2010. The reduction of insurance contributions from June 1 will be beneficial for the maintenance and creation of jobs but also for the relief of businesses., reducing non-wage costs.

3the Axis

Issuance of unemployment benefits to seasonal employees who will not be hired during the current tourist season and incentives for their re-employment.

Considering the effects of the pandemic crisis on the tourism industry, we are taking protective measures in favor of seasonal workers in this industry who are significantly affected..

particularly, we grant - as a monthly financial aid – the seasonal unemployment benefit until the month of September 2020 to about 120.000 seasonally unemployed. Alongside, the state undertakes to cover the employer's insurance contributions of seasonal part-time workers. This measure will serve as an incentive to re-employ seasonal workers. also, We are expanding unemployment benefits that expire in May by two months. End, we reduce the minimum wages required by 100 in 50 to receive the seasonal allowance next fall.

Concluding, I would like to refer to the OAED Social Tourism Program, for which we will triple its budget by 10 in 30 million. euro. Our target, especially this year, is to strengthen domestic tourism as much as we can. We join forces, we throw all our weapons into battle and make every effort to deal with the economic effects of the crisis from the pandemic. What is certain is that 2021 we will gain the lost ground.

As said Mr.. Vroutsis: “In the face of the unprecedented phenomenon of the corona pandemic and the health crisis, the Ministry of Labor & Social Affairs and overall The government of Kyriakos Mitsotakis from the first moment moved with speed, plan, sensitivity and responsibility. We pledged that we will all face this difficult situation together, companies, employees. We made very quick and urgent decisions within suffocating time frames, we applied exceptionally, temporarily but absolutely necessary measures concerning the support of workers and enterprises.

with 7 We have created Legislative Content Acts and the dozens of Ministerial Decisions and Circulars 5 bundles of measures for employees, businesses, freelancers, the self-employed and the unemployed. We listened to the demands of small and large professional groups and spread the net of protection to the whole of Greek society.. At the heart of all our actions, of all our policies, was and remains the employee. That is why the common denominator in all our legislative interventions was the maintenance clause of the existing jobs..

ERGANI's data for March and April confirm us:

In March, ERGANI's balance sheet showed any redundancies, these were even noted 18 March as that day the first measures were implemented and specifically the special clause for maintaining existing jobs. After 18 In March, the layoffs were eliminated.

The same data was shown by ERGANI in April. Despite the unfavorable fiscal situation and the lock down of the labor market, April ended with a positive balance (+7.205 hirings) while for the month of May the data of ERGANI are encouraging since the balance is positive until today.

All this information is as follows:

On the one hand, we have kept the big wave of layoffs that could work in chains for all sectors and bring about a complete collapse of the labor market., something we avoided
On the other hand, unfortunately, the expected jobs in tourism and food were not created, as was the case every year. For the opening of the tourist season, we faithfully followed the instructions of the scientific community because it was our conscious choice to prioritize the precious good of health.. Human life!!!!But these decisions made Greece a global model and today we are ready to cut the thread of the restart..

Specifically, during the first period of the crisis which began 18 March and expires 31 May, we moved on 3 essentials:

  • Supporting work through the special maintenance clause of existing jobs.
  • The compensation and support of all employees whose companies were closed by administrative order or were classified as affected by KAD.
  • Protecting the health and safety of workers through the faithful observance of health protocols and prevention of the spread of the virus in the workplace.

However, We are now leaving the first period of the crisis and entering the new phase of supporting the Greek economy and society.

We are now entering a new environment. We return with very stable, very careful and studied steps in regularity”.

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