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About Outsourcing Law in Vouliagmeni, Greece

Outsourcing in Vouliagmeni involves hiring an external provider to perform services or deliver functions that a business would otherwise handle internally. Common examples include IT support, software development, customer service, facilities management, cleaning and security, catering, accounting, payroll, and specialized consulting. Vouliagmeni is part of the wider Athens market, so businesses operate under Greek national law and European Union rules, with disputes typically falling under the jurisdiction of the Athens courts.

Greek outsourcing is shaped by a mix of contract law, employment and social security rules, data protection and cybersecurity regulation, intellectual property law, competition law, tax rules, and sector-specific licensing. EU law, including the General Data Protection Regulation and procurement directives, also applies. Successful outsourcing in Vouliagmeni turns on well drafted contracts, compliance with labor and data rules, clear service levels, and thoughtful vendor due diligence.

Why You May Need a Lawyer

You may need a lawyer to assess legal risk and structure your outsourcing in a way that is enforceable, compliant, and commercially workable. A lawyer can help you decide between service outsourcing, subcontracting, and temporary agency staffing, each of which is regulated differently and carries different liabilities.

Businesses commonly seek legal help to draft or negotiate master services agreements, statements of work, service level agreements, data processing agreements, and non-disclosure agreements. Counsel also advises on intellectual property ownership, licensing and escrow for software, background checks, and compliance audits.

Employment issues often arise where vendor staff work on site, where functions are transferred, or where long term arrangements begin to look like disguised employment. A lawyer can help avoid misclassification, manage transfer of undertaking risk when switching providers, and handle collective consultation duties if roles are affected.

Data protection is a frequent trigger for legal advice. A lawyer will confirm whether personal data is processed, draft Article 28 GDPR clauses, assess international transfers, and design incident response and breach notification processes that align with Greek practice and the Hellenic Data Protection Authority guidance.

Public sector and utilities contracts require strict compliance with procurement procedures and tender rules, for which specialist legal support is advisable. Counsel can also advise on competition law restrictions, tax treatment, and choice of law, jurisdiction, and arbitration provisions for cross-border deals.

Local Laws Overview

Contract and commercial law. Greek Civil Code and commercial principles govern service contracts, including outsourcing. Parties are free to agree terms such as scope, pricing, performance standards, liability caps, indemnities, termination, and step-in rights, provided terms are not unlawful or abusive. Greek law recognizes electronic signatures consistent with EU eIDAS, and qualified electronic signatures have the legal effect of handwritten signatures. Greek language versions may be required or preferred in public sector contexts, while private parties often use English or bilingual contracts.

Employment and labor. Outsourcing must be structured to avoid illegal labor leasing or misclassification. Greek law distinguishes genuine services outsourcing from temporary agency work, which is regulated and requires licensed temporary employment agencies. If vendor personnel work primarily under the direction and control of the client, there is risk of deemed employment. Greek law also contains rules on working time, minimum wage, annual leave, health and safety, and social security contributions. Employers and users of outsourced labor must comply with postings to the ERGANI information system and cooperate with the Hellenic Labour Inspectorate, which has audit and sanction powers.

Transfer of undertakings. Where a business function is transferred to a vendor or between vendors with continuity of an economic entity, the EU transfer of undertakings regime applies in Greece. Employee contracts and associated rights may transfer automatically, and there are obligations to inform and consult employee representatives. Outsourcing project plans should factor in TUPE analysis, timelines, and associated costs.

Health and safety. If vendor personnel work at the client premises in Vouliagmeni, both parties will have duties under the Greek health and safety code to provide a safe workplace, coordinate safety measures, and document risk assessments. Contracts should allocate responsibilities and ensure vendors maintain insurance and certifications.

Data protection and cybersecurity. The GDPR applies to personal data processed in outsourcing. Clients must appoint compliant processors and execute Article 28 data processing clauses, ensure appropriate technical and organizational measures, and maintain records of processing. International transfers require an adequacy basis or standard contractual clauses. Breaches may need notification to the Hellenic Data Protection Authority and to affected individuals. Greece has national cybersecurity rules consistent with EU network and information security obligations, which can apply to critical service providers and operators of essential services.

Intellectual property and confidentiality. Under Greek copyright law, contractors generally retain rights in works they create unless there is a written assignment or license. For software, economic rights created by an employee in the course of employment typically vest in the employer, but moral rights remain with the author. Outsourcing contracts should clearly state ownership of deliverables, background IP licenses, residual knowledge, and confidentiality obligations, and consider source code escrow for critical software.

Competition law and restraints. Exclusivity, non-compete, and non-solicit clauses in outsourcing are assessed for proportionality and duration. B2B restraints are more likely to be enforceable when they are ancillary to a legitimate collaboration and necessary to protect know-how and investments, but they cannot restrict competition beyond what is needed.

Consumer and sector rules. Where outsourced services face consumers, Greek consumer protection rules on unfair terms, transparency, and remedies may apply. Regulated sectors such as finance, health, telecoms, and energy can have outsourcing guidelines and notification duties set by regulators or supervisory authorities.

Public procurement. Public sector outsourcing and framework agreements must comply with Greek procurement law, which implements EU directives on public contracts and concessions. There are strict procedures for tenders, award criteria, performance guarantees, change control, and contract modifications.

Tax and social security. Outsourcing can affect VAT, corporate income tax, withholding tax, and permanent establishment analysis. The place-of-supply rules determine VAT on services. Fees for services performed in Greece may carry withholding obligations in some cases, subject to double tax treaties. Social security liabilities remain with the employer of record, but joint liability can arise by law or contract in certain sectors. Tax treatment is fact specific and should be confirmed with a tax adviser.

Dispute resolution. Parties can choose Greek law or another governing law if there is a cross-border element. Greek courts in Athens will generally have jurisdiction for disputes tied to Vouliagmeni unless the contract selects arbitration or another forum. Arbitration seated in Greece is recognized, and Greece is a party to the New York Convention, allowing enforcement of foreign arbitral awards. Mediation is also supported under Greek law for commercial disputes.

Frequently Asked Questions

How is outsourcing different from hiring through a temporary employment agency in Greece

In genuine outsourcing, the vendor delivers an agreed service using its own methods and supervision, and bears performance risk. In temporary agency work, an agency supplies workers to perform duties under the client’s direction, which is regulated and requires a licensed agency. Mislabeling staff supply as outsourcing can create legal exposure for the client as the deemed employer, including wage, social security, and penalty risks.

Can I outsource a core business function

Yes, but the more core the function, the more important it is to structure governance, performance standards, and exit rights. Heavily integrated or on-site services raise TUPE and co-employment risks on transitions. Regulated businesses may face limits or notification duties when outsourcing critical or important functions.

What should a Greek law outsourcing contract include

Key elements include scope and service descriptions, measurable service levels and credits, acceptance criteria, change control, pricing and indexation, invoicing and taxes, data protection and security, IP ownership and licenses, confidentiality, personnel standards and background checks, health and safety coordination, subcontracting controls, audit rights, insurance, liability and indemnities, term and termination, exit assistance and data return, and governing law and dispute resolution. For personal data, include GDPR Article 28 processor clauses.

How do we handle personal data under GDPR

Identify roles as controller or processor, sign a compliant data processing agreement, and ensure appropriate security measures. Conduct vendor due diligence, including technical and organizational measures, breach history, and sub-processor management. If data leaves the EEA, use an adequacy decision or standard contractual clauses and perform transfer risk assessments. Maintain records of processing and ensure breach notification procedures align with Hellenic Data Protection Authority practice.

Will employees transfer to the vendor when we outsource

They can, if the arrangement qualifies as a transfer of an economic entity retaining its identity. In that case, employees assigned to that entity may transfer automatically with their rights preserved. There are information and consultation duties and restrictions on dismissals connected to the transfer. Analyze this early to avoid delays and disputes.

Are non-compete and non-solicit clauses enforceable in Greece

Between businesses, these restraints are generally enforceable if they protect legitimate interests, are proportionate in scope and duration, and do not unduly restrict competition. Clauses that prevent a client from hiring vendor staff are common but should be reasonable and time limited. Post-employment non-competes for individuals have stricter limits and often require compensation.

What liabilities can the client have for vendor staff

Even in outsourcing, a client can face claims if the arrangement masks an employment relationship or if joint liability applies by law or contract, particularly in sectors like cleaning, guarding, and construction. Health and safety coordination duties at the client site can also expose the client if proper measures are not in place. Clear contract allocation and active oversight reduce this risk.

What tax issues should we consider

Consider VAT place-of-supply for services, potential withholding tax on certain payments, permanent establishment risk for foreign vendors operating in Greece, and the deductibility of fees. Social security obligations remain with the employer of record, but check for any statutory or contractual joint liability. Obtain tailored advice from a tax professional before implementation.

How are disputes usually resolved

Many outsourcing contracts select arbitration for speed, confidentiality, and enforceability, with the seat often in Athens or another neutral venue. Others choose the Athens courts, which will generally have jurisdiction for Vouliagmeni-related disputes. Mediation is encouraged before or during proceedings. Include escalation and governance steps to resolve issues early.

Can we sign outsourcing contracts electronically

Yes. Electronic signatures are recognized, and qualified electronic signatures are treated as equivalent to handwritten signatures under EU and Greek law. Ensure your process preserves integrity and identity, and follow any notarization or formality requirements for specific documents if they apply.

Additional Resources

Hellenic Data Protection Authority - guidance on GDPR compliance, breach notifications, and data processing agreements.

Ministry of Labor and Social Affairs - rules on employment, working time, ERGANI submissions, and information and consultation.

Hellenic Labour Inspectorate - enforcement of labor, health and safety, and undeclared work rules, including audits in Attica.

Hellenic Single Public Procurement Authority - guidance on public procurement procedures and contract management for public sector outsourcing.

Independent Authority for Public Revenue - information on VAT, withholding, and invoicing rules relevant to services.

Athens Bar Association - directories to locate licensed attorneys experienced in outsourcing, IT, labor, and data protection.

Hellenic Industrial Property Organization and copyright authorities - resources on IP registration and rights management.

Local Municipality of Vari-Voula-Vouliagmeni - permits, local business rules, and contacts for premises and operations in Vouliagmeni.

Next Steps

Define the business case and scope. Identify what services you will outsource, expected outcomes, budget, timeline, and internal stakeholders. Map any personal data and systems involved and classify criticality.

Conduct vendor due diligence. Check licensing where relevant, financial stability, technical capability, data protection posture, security certifications, insurance coverage, subcontracting chains, and references. Assess on-site work in Vouliagmeni for health and safety compatibility.

Structure the deal. Choose an appropriate model - managed services, build-operate-transfer, framework with statements of work, or time and materials. Decide on governance, KPIs, service levels, credits, and change control. Plan exit and transition from day one.

Address compliance. Prepare GDPR Article 28 clauses, international transfer tools if needed, confidentiality undertakings, and security annexes. Confirm ERGANI and labor compliance, TUPE analysis if applicable, and health and safety coordination for any on-site services. Check procurement rules for public entities.

Allocate risk. Negotiate liability caps, exclusions, indemnities for IP infringement, data breaches, and third party claims, and ensure warranties match reliance. Require appropriate insurance and audit rights.

Finalize contracting formalities. Agree governing law and dispute resolution, signature method, and language versions. Ensure internal approvals and vendor onboarding steps are complete.

Engage counsel early. A lawyer familiar with Greek outsourcing, employment, and data protection can draft and negotiate the documents, conduct risk checks, and tailor the structure to Vouliagmeni operations. Prepare a data map, service description, and list of critical concerns before the first legal meeting to save time and cost.

This guide provides general information and is not legal advice. For advice on your specific situation in Vouliagmeni, consult a qualified Greek lawyer.

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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.