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About Outsourcing Law in Elliniko, Greece

Outsourcing in Elliniko, Greece typically means hiring an external provider to perform business functions - for example IT, payroll, facilities management, security, customer service or specialised professional services. Legally, outsourcing arrangements are governed by contract law, labour and social-security rules, tax and VAT rules, data protection, intellectual property and, where applicable, public procurement rules. Because Elliniko is part of the greater Athens market, most commercial and litigation matters are handled through Athens-based courts and practitioners. Local counsel can advise on how national Greek law and EU rules apply to specific arrangements, and can help structure contracts to manage operational, compliance and regulatory risk.

Why You May Need a Lawyer

You may need a lawyer when you plan, negotiate or manage an outsourcing arrangement. Common situations include drafting or reviewing service agreements and statements of work, defining service-level agreements and penalties, allocating liability and indemnities, ensuring compliance with employment and social-security obligations when workers are transferred or reclassified, drafting data-processing agreements to meet GDPR requirements, protecting intellectual property and know-how, advising on VAT and corporate tax treatment, and handling disputes or termination procedures. A lawyer helps minimise legal and financial exposure, ensures that the contract reflects commercial intent, and assists with regulatory filings or notifications where needed.

Local Laws Overview

Key legal areas that commonly affect outsourcing in Elliniko include the following.

Contracts - Outsourcing relationships are primarily governed by contract law under the Greek Civil Code. Clear statements of scope, deliverables, payment terms, timelines, change-control mechanisms, termination rights and remedies are essential.

Employment and social-security law - Greek labour law protects employees strongly. If services involve transferring staff, secondment or converting employees into contractors, specific rules on employment status, collective agreements and mandatory social-security contributions apply. The Unified Social Security Fund - EFKA - administers contributions and benefits.

Data protection - Outsourcing often involves personal data. The EU General Data Protection Regulation - GDPR - applies across Greece. National implementing law such as Law 4624/2019 and guidance from the Hellenic Data Protection Authority set additional requirements. Data processing agreements and safeguards for cross-border transfers are normally required.

Tax and VAT - VAT rules apply to services and may affect pricing and invoicing. Tax withholding, permanent establishment risk and transfer-pricing rules are relevant for cross-border outsourcing. The Independent Authority for Public Revenue - AADE - administers tax matters.

Intellectual property and confidentiality - Outsourcing contracts should address ownership or licence of work product, pre-existing IP, confidentiality obligations and permitted use of trademarks or trade secrets.

Liability, indemnities and insurance - Greek law allows parties to allocate risk contractually, subject to public policy limits. Contractual caps on liability, indemnities for third-party claims and requirements for professional or general liability insurance are common.

Public procurement - When a public authority in Elliniko outsources services, procurement laws and competitive tender rules apply and impose strict procedural and transparency obligations.

Competition and anti-trust - Agreements that limit competition can attract scrutiny from the Hellenic Competition Commission. Outsourcing arrangements should not include unfair restraints that could be seen as anti-competitive.

Health and safety - For services that involve physical premises, workplace health and safety rules apply and responsibility for compliance should be allocated between the parties.

Frequently Asked Questions

What is the difference between outsourcing and subcontracting?

Outsourcing is a broader business decision to have an external provider perform a function that was previously done in-house. Subcontracting usually refers to a contracted provider hiring another party to perform part of that contracted work. Both raise similar legal issues - contract terms, liability and compliance - but subcontracting often requires contractual consent and flow-down obligations to ensure subcontractors meet the same standards as the primary provider.

How do I know whether a worker is an employee or an independent contractor under Greek law?

Greek law uses a fact-based test looking at control, continuity, remuneration structure and integration into the client’s business. Employees generally have employment contracts, fixed schedules, social-security registration and employer obligations. Misclassifying employees as contractors can lead to back-payments for wages, social-security contributions and penalties. A lawyer can review facts and help structure the relationship properly.

What data protection steps are required when outsourcing services?

If personal data is processed, you generally need a written data-processing agreement that sets out permitted processing, security measures, duration and subprocessing rules. You must ensure compliance with GDPR principles, conduct risk assessments where appropriate, and follow rules on international data transfers. The Hellenic Data Protection Authority issues guidance for specific sectors and scenarios.

Can an outsourcing contract limit liability for negligence or gross negligence?

Greek law allows contractual limitation of liability, but clauses that attempt to exclude liability for intentional wrongdoing or certain mandatory statutory liabilities may be unenforceable. Limits must be clearly drafted and proportionate. For essential contractual obligations, courts may be reluctant to uphold unlimited exclusions.

What happens to employees if a service is outsourced from one company to another?

When a transfer of undertaking occurs, employees may have protections under Greek labour law and EU-derived principles, including continuation of employment terms and maintenance of accrued rights. Whether a transfer applies depends on the nature of the transaction - assets, continuity of operations and identity of the business. Legal advice is essential to manage employee rights, consultation obligations and social-security issues.

Are there special rules for public sector outsourcing in Elliniko?

Yes. Public sector outsourcing must comply with public procurement law, which sets competitive tendering, transparency and equal treatment requirements. Contracts may include specific performance guarantees and oversight provisions. Failure to follow procurement rules can lead to contract invalidation and administrative penalties.

How should intellectual property be handled in an outsourcing agreement?

Contracts should specify ownership or licensing of deliverables and pre-existing IP, terms for assignment where needed, and permitted uses after termination. Include confidentiality obligations and restrictions on use of trade secrets. For software development, ensure source code ownership or escrow arrangements are addressed if continuity is critical.

What tax and VAT issues should I consider for an outsourcing arrangement?

Determine whether services are subject to VAT and if the supplier should charge it. For cross-border services, VAT and place-of-supply rules may change invoicing treatment. Consider withholding tax, permanent establishment risk if staff work from Greece on behalf of a foreign provider, and transfer-pricing rules for related-party transactions. Consult a tax adviser and a lawyer to align commercial and tax structures.

How are disputes typically resolved in outsourcing contracts in Greece?

Parties commonly include dispute-resolution clauses specifying negotiation, mediation or arbitration before litigation. Arbitration is widely used and arbitral awards are enforceable under international conventions. If court litigation is chosen, Athens courts typically have jurisdiction for contracts governed by Greek law. A lawyer can advise on the best dispute-resolution mechanism based on enforceability and speed.

What should I bring to my first meeting with a lawyer about outsourcing?

Bring the draft contract or current agreement, a description of the services and scope, information about staff and subcontractors, data types processed and locations, pricing and payment terms, insurance certificates, any regulatory licences, and a clear statement of your commercial priorities - for example risk tolerance, continuity concerns and budget. This helps the lawyer give focused, practical advice.

Additional Resources

Hellenic Data Protection Authority - national supervisory authority for data protection and GDPR guidance.

Independent Authority for Public Revenue - AADE - for tax and VAT queries related to services.

Unified Social Security Fund - EFKA - for social-security and employer contribution matters.

Ministry of Labour and Social Affairs - guidance on employment law, collective agreements and labour inspectorate procedures.

Labour Inspectorate - SEPE - for compliance inspections and workplace health and safety guidance.

Hellenic Competition Commission - for questions about anti-competitive concerns in outsourcing agreements.

Athens Bar Association and local law firms - for referrals to lawyers experienced in outsourcing, IP, data protection, tax and employment law in the Athens-Elliniko area.

Athens Chamber of Commerce and Industry - for local business guidance, industry contacts and sector-specific associations.

Municipality of Elliniko-Argyroupoli - for local administrative or licensing questions affecting on-site services and permits.

Next Steps

If you need legal assistance with outsourcing in Elliniko, start by identifying your objectives and the most important risks - for example employee issues, data protection, or business continuity. Collect relevant documents and arrange an initial consultation with a lawyer who has experience in outsourcing and the specific legal areas involved. Ask about the lawyer’s experience in Athens or Elliniko matters, their fee structure, and whether they work with tax advisers or technical specialists as needed. Agree a clear scope of work and request an engagement letter that sets out deliverables, timelines and costs. Early legal input can prevent costly disputes and help you structure an outsourcing arrangement that meets commercial goals while complying with Greek and EU law.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.