Greece scraps legal need for layoff justification

Simplified employment rules will create more jobs: Minister
||Last Updated: 08/22/2019
Seasonal farm workers pick and dry raisins in Greece, Aug. 18, 2017. Ververidis Vasilis/Shutterstock

ATHENS — Greece's new centre-right government has scrapped legislation that required employers to provide a “well-founded” reason for dismissals.

Labour Minister Giannis Vroutsis signed the change into effect Monday, abolishing the rules approved just three months ago by the previous left-wing government which had argued that justifying dismissals protected workers.

The minister countered that simplifying employment rules would encourage employers to create more jobs.

Greece has the European Union's highest unemployment rate, at around 17 per cent.

Following a general election in July, the new conservative government has promised to get slash regulation and create a more business-friendly legal framework, insisting that growth rates — forecast to be at 2.1 per cent this year — are too low for a country emerging from a protracted recession and financial crisis.

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