Covid-19: Greece to Launch ‘Syn-ergasia’ Job Retention Scheme

Aiming to protect jobs and at the same time keep companies hit by the coronavirus pandemic above water, the Greek government announced the launch on June 1 of the “Syn-ergasia” program.

Running initially through to September 30, the temporary employment support tool based on the tried and tested “Kurzarbeit” scheme – a German policy that brings in shorter work time – aims to keep unemployment at bay while giving companies a breather.

Under the scheme, Covid-19-impacted businesses can slash the working hours of their full-time employees by half without affecting their working agreement. The state will in turn cover up to 60 percent of their lost income.

According to the Greek labor ministry, the plan could cover up to 100 percent of an employee’s salary.

Indicatively, an employee with a 1,000-euro salary forced to work half time will receive 500 euros from his employer and 300 euros from the state.

All companies in Greece demonstrating a reduction of at least 20 percent in turnover can participate in the Syn-ergasia support mechanism. Newly established and seasonal companies and all full-time employees are eligible.

It should be noted that companies making use of the tool cannot lay off any employees.