Welcome to the February 2026 edition of the AP Legal | In Focus newsletter offering a curated overview of key legal and regulatory developments across the firm’s principal areas of practice, including Employment, Direct Investments, Corporate and M&A, Telecommunications, Media and Information Technology, Green Energy, as well as Real Estate and Property.
1. Introduction
In the second half of 2025, a new labour law, Law 5239/2025, entitled “Fair Work for All”, was enacted. During its drafting and parliamentary deliberations, the reform generated significant debate regarding its potential impact on labour relations and working conditions.
The law is structured into distinct Parts addressing different regulatory areas. Part A focuses on the modernisation of the labour market framework, aiming to enhance transparency and employee protection, simplify recruitment procedures, promote flexible working-time arrangements, and integrate digital tools into employment relationships. Parts B and C, in turn, strengthen the framework on occupational health and safety and ratify international labour conventions concerning workplace health protection and the prevention of forced labour.
The extent to which these objectives are effectively supported by the regulatory framework introduced by the law merits closer examination.
2. Main Regulatory Changes Introduced
In particular, the aforementioned legislation introduces a series of concrete regulatory measures that substantially reshape employer obligations and operational practices. The most significant changes may be grouped as follows, reflecting the classification adopted by the Ministry of Labour.
2.1 Modernization of Employment provisions
A key amendment concerns the framework governing overtime work.
• Legal overtime is increased from three (3) to four (4) hours per day, with the annual cap of 150 hours remaining unchanged. As a result, employees may now work up to thirteen (13) hours per day for the same employer (an option previously available only in cases of parallel employment with multiple employers), provided that statutory rest periods and all applicable employment safeguards are strictly observed and the 40% overtime premium is duly paid.
• At the same time, the employee’s right to refuse overtime work is expressly recognized, and such refusal may neither constitute grounds for dismissal nor justify any adverse change in working conditions. Although these amendments expand working-time flexibility, they reinforce dismissal protection and intensify scrutiny of overtime compliance.
2.2 Digitalisation of Employment Administration
• Recruitment is streamlined through a single digital hiring notification, replacing multiple prior filings.
• A dedicated electronic “Fast-Track Hiring” application further allows employers to address urgent staffing needs by engaging employees under fixed-term contracts, whether full-time or part-time, for up to two (2) days per week.
• Employers may now also fulfil their obligation to inform employees of the essential terms of employment through notification via the MyErgani[KK1.1] platform.
• In parallel, several employment-related documents no longer need to be kept physically at the workplace, as employment filings are increasingly processed through the ERGANI II [KK2.1]system, marking a decisive shift towards digital administration.
• Employees are granted direct access to employment-related data through MyErgani, while employers may manage declarations and submissions through the new “Ergani” [KK3.1]mobile application.
As a result, labour law compliance shifts decisively from physical paperwork and on-site inspections to digital reporting and electronic oversight, increasing the importance of accurate and timely electronic submissions.
2.3 Reduction of administrative burden
As part of the broader effort to simplify administrative procedures, several legacy paper-based obligations are abolished.
• Previously mandatory records, such as leave booklets, and various employment-related documents that are now maintained digitally are no longer required in hard copy form.
• The Digital Work Card framework also permits flexible attendance of up to 120 minutes and regulates preparation time.
2.4 Recalibration of Working-Time Arrangements
The law allows employers and employees to agree on a system under which working time may vary over a defined period. During busier periods, the employee may work up to two additional hours per day (without this constituting overtime), provided that these extra hours are later compensated by a corresponding reduction in working time during quieter periods.
Under the previous framework, this balancing of increased and reduced working time had to be completed within six (6) months. The new law extends this maximum balancing period to up to twelve (12) months. In addition, the law clarifies that the extra hours worked during the busy period may be compensated not only through reduced working time, but also through rest days or additional paid annual leave.
While employers benefit from broader planning horizons and increased flexibility, this flexibility is conditional upon strict compliance with requirements on employee consent, written agreements, proper record-keeping, and protection against dismissal in cases of non-consent.
2.5 Annual Leave
Annual leave is, in principle, granted continuously. Division of annual leave is now permitted exclusively upon the employee’s written request and with the employer’s consent, subject to compliance with statutory minimum duration requirements. At least one part of the leave must include a minimum number of consecutive working days (five or six working days, depending on the working week, and twelve working days in the case of minors).
3. Conclusion
Despite the intense debate surrounding its adoption, Law 5239/2025 introduces greater flexibility and digitalization in labour relations, while seeking to reinforce transparency and employee protection. For employers, the key challenge will be to leverage the flexibility introduced by the law while ensuring timely adaptation of internal policies and compliance mechanisms in order to mitigate regulatory and enforcement risk.
Disclaimer
This flash information update is provided for general informational purposes only and does not constitute, nor is it intended to constitute, a comprehensive analysis of the matters set out herein. It should not be relied upon as legal advice. Legal or other professional advice should be sought before taking, or refraining from taking, any action based on the information contained in this briefing to a specific situation.
