On February 16, 2026, Law 5278/2026 (the “Law”) titled “National Social Agreement for the Strengthening of Collective Agreements”, entered into force in Greece. The Law forms part of the broader Action Plan for the Promotion of Collective Bargaining (2026–2030), adopted pursuant to Law 5163/2024, and reflects a joint initiative of the Ministry of Labor and Social Security and the National Social Partners.
Its declared objective is to strengthen collective bargaining and significantly increase workforce coverage by Collective Bargaining Agreements (“CBAs”). The reform introduces changes, namely, to extension mechanisms of CBAs and their after-effect rules, trade union registries, and mediation and arbitration proceedings.
Below, we present the key pillars of the new framework and their practical implications.
Subsidiary Competence of General Confederation of Greek Workers (“GSEE”)
GSEE may now co-sign sectoral CBAs in a subsidiary competence (provided it is invited to do so).
- Link to Sectoral CBAs Extension: Where National Social Partners co-sign a sectoral CBA, the quantitative workforce coverage threshold is not examined (see below, under no. II).
Attention! Sectoral CBAs must now explicitly define their scope, including, at a minimum, a reference to relevant sectoral business activity codes (“KAD”).
Facilitation of Extension of Sectoral and Occupational CBAs[1]
The Law reforms the conditions under which a sectoral and/or occupational CBA may be declared as generally binding, as follows:
- Reduced Quantitative Threshold: The workforce coverage threshold required for extension is reduced from 50% to 40%.
- Non-Application of the Threshold in Case of Co-Signature: Where a sectoral CBA is co-signed by National Social Partners (i.e., GSEE and SEV, GSΕVEE, ESEE, SETE, or SVE), the 40% quantitative threshold is no longer examined.
Full Restoration of “After-Effect”
The Law provides that after expiry or termination of a CBA, and its automatic three-month extension period, all regulatory terms of the CBA remain fully in force until they are replaced by a new collective agreement or by a new or amended individual employment agreement. In practice, this marks a clear departure from the partial after-effect regime introduced in 2012. Additionally, new hires during the three-month extension period are also covered by the expired CBA’s terms.
Simplification of registration requirements in Registries
The Law simplifies the registration requirements in the General Registries of employees’ trade union (“GEMISOE”) and employers’ organizations (“GEMIOE”), reducing the data submission obligations.
Furthermore, the legal consequences of non-registration are redefined, as registration in the relevant Registries no longer constitutes a prerequisite for the legal capacity of trade unions and employers’ organizations to conclude CBAs. However, registration is essential both for the extension of CBAs and application to mediation and arbitration proceedings before the Organization for Mediation and Arbitration (“OMED”).
Acceleration of Collective Dispute Resolution before OMED
The Law restructures collective dispute resolution procedures before OMED with the aim of enhancing procedural efficiency and accelerating the resolution of disputes. Key changes include:
- Establishment of a Committee to examine the admissibility of unilateral application to mediation and arbitration.
- Abolition of second-level arbitration within OMED (as of 25 February 2026).
In conclusion, employers should proactively assess whether their operations fall within the scope of existing or potentially extendable CBAs, closely monitor developments within their sector or relevant professional category, and evaluate in advance the financial and operational impact of a possible extension decision. Under the new Law, operating in fields where collective bargaining activity is active entails a higher probability that a CBA will become applicable, even where the employer is not a member of the signatory employers’ organization.
[1] Extension refers to the mechanism whereby the terms of a Sectoral and/or Occupational CBA may, by ministerial decision, be declared generally binding and thus become applicable to all employees and employers within the relevant sector and/or occupation, including those who are not members of the organizations that participated in its conclusion.
