The last days the Greek Government announced a series of financial measures to support the economy.
The following is a brief overview:
1. Financial Measures announced by the Greek Government
a) For businesses
• Suspension of the obligation to pay taxes until July 31, 2020, for businesses whose revenues are particularly affected
• Interim financing through repayment of part of the tax prepayments made
• For companies that are banned from operating, the tax debts and any instalments are deferred for 4 months
• 3 months loan interest subsidy for companies that have been hard hit
• Medium-term development measures in cooperation with the banks and the EU Commission (collateral, liquidity at banks, etc.) will be announced in detail
One of the main concerns of the Government is to preserve jobs. The employment of all employees of a company is therefore a prerequisite for the granting of the above benefits.
b) For employees
In this respect, it should be noted that under Greek labour law there is no obligation to continue paying wages if the employer has to shut down the company due to force majeure. The current operating bans are regarded as such a case, with the result that there are no entitlement to continued wages for these contractors.
• These workers will receive state compensation of € 800 in early April
• Your social contributions are covered by the state for this period
• Tax obligations are deferred for 4 months
• There is a prohibition of termination for companies with operating bans
2. Financial measures already implemented
The following finacial measures have already been implemented in the Legislative Act A68/20.03.2020:
a) 40 % reduction of rent for March and April for businesses, whose operation has been temporarily suspended due to measures related to coronavirus COVID-19.
Stamp fee and/or VAT for the commercial leases will be re-calculated on the basis of the rent payable after above reduction.
b) Immediate refund of income tax and VAT under audit up to 30.000 €.
c) Financing of actions of aid to businesses: Calls for action of financial aid may be financed by the national or co-financed part of Public Investment Program
d) Business’ operation with emergency operation personnel: The employer may decide to apply a system in the business as follows:
- Every employee may be employed at least for two (2) weeks every month, either consecutively or intermittently,
- The above system of organizing work will be decided on a weekly basis and at least 50% of business personnel will be included in it,
- The Employer who will apply this system of organizing work is obliged to preserve the same number of employees employed on the date the present came into force,
e) Intra-group transfer of personnel: The employer whose business operation has been substantially affected or is banned pursuant to existing regulatory provisions, may, upon agreement, transfer personnel from one group company to another group company. Group companies are obliged to preserve in total the same number of employees that they employed before the transfer.
f) Employers under suspension or ban of operation further to public order and for all the period of time necessary to face COVID-19 are obliged not to reduce the personnel by termination of employment contracts. Terminations are null and void. The present comes into force as of March 18th, 2020.
g) Private sector businesses – employers seriously affected by COVID-19 phenomenon, may suspend the employment contracts of part or their entire personnel. This may be implemented up to one (1) month after the publication of the present.
