Phase
Law 2956/2001 on labour force employment organisation
Native name
Νόμος 2956/2001 Οργανισμός Απασχόλησης Εργατικού Δυναμικού
Type
Redundant employees entitlement to public support
Added to database
11 May 2015

Article

Chapter A, Articles 1-7


Description

In addition to granting benefits (unemployment, maternity, medical care and other aid), the labour force employment organisation (OAED) also aims to strengthen the provision of employment services to the unemployed and to develop policies and measures through targeted interventions to tackle unemployment. In particular:

  • it implements employment programmes for the benefit of both businesses/employers and the employed/unemployed, such as business grant programmes for the employment and/or training of employees, employer's support programmes with subsidised social security contributions, subsidy programmes for young self-employed people, and business subsidy programmes for the hiring of young employees or those close to retirement age, among others;
  • a main priority area for the organisation is to provide counselling services which constitute dynamic interventions to activate and mobilise the unemployed and to facilitate their entry into the labour market. The counselling services provided by the OAED consist of counselling and career guidance - namely, career management, job seeking counselling and entrepreneurial counselling; and
  • other interventions, including direct hiring of staff for public works by municipalities, associations and public sector legal entities.

The above-mentioned measures are open to all unemployed people, not only to those affected by restructuring. In general, there are no restrictions, but some specific actions may target specific industries or categories of unemployed, such as people younger than 25 or older than 50, or persons with disabilities, and so on.


Commentary

The purpose of the OAED is to implement government policy on a number of issues, namely fostering employment/combating unemployment; strengthening and facilitating the integration of the country's human capital into the labour market;  providing unemployment benefits; promoting vocational education and training and their connection with employment; supporting the intellectual and social development of the workforce and their families; providing housing benefits; and supporting their collective organisation and action, with a view to improving their living standards.

The unemployment allowance currently provided by the OAED is considered particularly low in relation to the needs that exist in the country due to the prolonged economic crisis. The monthly benefit paid in case of redundancy in 2019 ranges between €399,25, for those cases where the unemployed person has no dependents, and €640, for cases where the unemployed person has six or more dependents. It is provided for a maximum period of approximately one year, after which it stops even if the unemployed person has not found a new job. 

On the other hand, there is a great effort to support active employment policies. Nonetheless, due to the economic crisis, high unemployment (especially long-term) and the structural problems in the labour market, these programmes (although necessary) are currently not able to provide an effective long-term response to the problems of the unemployed, given that labour demand is low.

Because unemployment considerably increased during the prolonged economic crisis in Greece, the OAED has been sorely tested as the social demand for benefits and services has increased rapidly. In this context, a plan to restructure the OAED was implemented in 2014 under the supervision of the European Commission, with the aim of ensuring the provision of more and better services to the unemployed, a better planning and implementation of employment programmes, an improved system of apprenticeship in the development of partnerships, and cooperation with public, social and private actors. However, due to austerity and the government deficit, no increase in benefits (in terms of unemployment allowances) to the unemployed is expected although, in reality, the need of the unemployed for cash benefits remains very high.


Additional metadata

Cost covered by
Companies Employee Employer National government
Involved actors other than national government
Public employment service
Involvement (others)
None
Thresholds
Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Citation

Eurofound (2015), Greece: Redundant employees entitlement to public support, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/redundant-employees-entitlement-to-public-support/greece

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