Establishing a Temporary Employment Enterprise (EPA) in Greece

Establishing a Temporary Employment Enterprise (EPA) in Greece

1. What is a Temporary Employment Enterprise (EPA)?

Temporary Employment Enterprises (EPAs) are businesses whose main activity is to provide workers to another employer (the “indirect employer”) for a limited period of time, in the context of temporary employment.

• The direct employer is the EPA: the worker is employed by the EPA under an employment contract (fixed-term or open-ended).
• The indirect employer is the business to which the worker is temporarily assigned and where they work under its direction and supervision.

The main legal framework is set out in Law 4052/2012 (in particular Articles 122–129, which transpose Directive 2008/104/EC on temporary agency work), as well as the relevant ministerial decisions of the Ministry of Labour.

In practice, an EPA operates as a provider of organised manpower: it hires the workers itself, assumes all employer obligations and then assigns them, for a fee, to businesses that need staff for a specific period of time.

2. Procedure for establishing and licensing an EPA

Setting up an EPA in Greece involves two main stages:

1. Incorporation of the company (in an appropriate legal form).
2. Special licensing / notification procedure for operating as an EPA before the Ministry of Labour.

 

2.1. Company incorporation

An EPA may be incorporated:

• by a natural or legal person,
• in any lawful company form (SA, Ltd, PC/IKE, etc.).

The former special minimum capital requirement for EPAs has been abolished. Today, only the general minimum capital requirements apply, depending on the legal form (e.g. for an SA, the minimum capital provided for by company law).

The company is incorporated through the One-Stop Service / General Commercial Registry (GEMI), with articles of association explicitly stating that the company may engage in temporary employment activities. The company then completes tax registration with the competent tax office (DOY), using an appropriate business activity code (KAD) for temporary employment services.

2.2. Notification of commencement of EPA activity

In order to operate lawfully as an EPA, the company must submit a notification of commencement of EPA activity to the competent Directorate of the Ministry of Labour (Directorate of Individual Employment Regulations).

The procedure has the form of a pre-approval / notification system:

• A file is submitted containing all required supporting documents.
• If the conditions are met and no prohibition decision is issued within three months from full submission, the EPA is deemed to be operating lawfully (a regime of “tacit approval”).

Indicatively, the file includes:

1. Certificate of commencement of activity from the competent tax office, with the relevant KAD.
2. Corporate formation documents: articles of association, GEMI registration, any Government Gazette (FEK) publications where required, and details of the company’s legal representation.
3. Tax and social security clearance certificates of the company (and, where applicable, of the founders/managers).
4. Criminal record extracts for the responsible persons (managers, partners, board members, etc.), in order to ensure that there are no serious convictions (especially for offences related to labour exploitation, trafficking in human beings, etc.).
5. Premises and professional registered office:
   • Title deed or lease agreement duly filed with the Independent Authority for Public Revenue (AADE).
   • A valid Fire Safety Certificate.
   • A certificate from a qualified engineer confirming that the premises meet the minimum occupational health and safety standards (e.g. under Presidential Decree 16/1996).
   • A solemn declaration that the prescribed health and safety signage has been installed (e.g. in accordance with Presidential Decree 105/1995).

The premises must be an independent professional space used exclusively for the EPA’s activity and suitable for maintaining personnel files containing personal data and for receiving workers/candidates.

3. Bank guarantees and financial requirements

A key element of the licensing of an EPA is the provision of bank guarantee letters, which serve as security for the payment of salaries and social security contributions of temporary agency workers.

At present, the following are required:

• A €60,000 guarantee letter in favour of the Ministry of Labour, and
• A €30,000 guarantee letter in favour of e-EFKA,

both of which:

• are of indefinite duration, and
• must remain in force throughout the EPA’s operation.

In the event of serious breaches (e.g. non-payment of wages or social security contributions), the guarantees may be called in favour of the employees and/or the social security institutions.

4. File review and completion of the procedure

After submission of the file:

1. The competent authority examines whether it is complete. If documents are missing, the company is invited to provide them. The three-month period for tacit approval runs from the moment the file becomes complete.
2. A three-member review committee is established, consisting of Labour Inspectors, with the participation of a Health & Safety Inspector.
3. An on-site inspection is carried out at the company’s premises, attended by the legal representative and/or the EPA’s manager.
4. The committee prepares a certification report, confirming whether the legal requirements have been met.

 

If the outcome of the review is positive:

• the Ministry informs the company,
• requests the submission of the bank guarantees (if not already provided) and the state fee, and
• the licensing procedure is then completed.

The operating licence does not have a fixed expiry date, but its validity depends on continuous compliance with the conditions. If the EPA ceases to comply (e.g. changes premises without fulfilling the relevant requirements, reduces the guarantees, etc.), the authorities may revoke the licence.

💡 Important: An EPA may not engage in unrelated activities beyond temporary agency work. By way of exception, it may provide other related services (e.g. operate as a Private Employment Agency – IGEΕ, offer staff assessment/training, or career counselling), provided this is explicitly declared and is not prohibited by the authorities.

5. Obligations of the EPA as employer

The EPA is the direct employer of the temporary agency workers and bears all obligations arising under labour and social security law:

• payment of salaries, benefits and compensation,
• registration and insurance with e-EFKA,
• compliance with working hours, leave entitlements and health & safety rules,
• application of any relevant collective arrangements, where applicable.

The law provides that the EPA and the indirect employer are jointly and severally liable towards the workers for the payment of accrued wages and corresponding social security contributions. The cooperation between the EPA and the indirect employer should be governed by a clear contract, defining each party’s obligations, without ever undermining the employees’ rights.

6. Requirements for the EPA’s manager and comparison with IGEΕ

 

6.1. EPA manager / responsible person

The applicable legislation does not impose specific formal qualifications (such as a particular degree or professional experience) for the manager of an EPA.

This means that:

• The manager/administrator is appointed by the company as in any other commercial company.
• No specific degree in social sciences, economics, law or HR, nor proven HR experience, is required by law.
• However, the integrity of the responsible persons is checked via criminal record extracts (persons with serious convictions are excluded).

Accordingly, for EPAs the emphasis is not placed on the manager’s formal qualifications, but on the organisational and financial conditions under which the business operates.

6.2. Comparison with Private Employment Agencies (IGEΕ)

For Private Employment Agencies (IGEΕ), whose activity is to mediate in finding jobs (and not to hire and assign staff):

• the law provides for specific qualifications for the director (certain university studies or proven experience in human resources management),
• the relevant documents (degrees, certificates of employment, etc.) must be submitted,
• the responsible person is named explicitly in the operating licence.

This differentiation illustrates the different nature of the two schemes:

• The IGEΕ focuses on counselling and mediation between jobseekers and employers.
• The EPA focuses on the actual employment of workers and their assignment to third parties, with the corresponding employer obligations.

 

7. Employment of foreign workers through an EPA

The employment of foreign nationals (third-country nationals) through an EPA is possible, provided that the Greek Migration Code (Law 4251/2014) and labour law are strictly complied with.

Key parameters:

1. Lawful residence & right to work
   Every foreign worker must hold a valid residence permit in Greece with an explicit right to work. Employing a foreign national without such a permit is prohibited and may trigger significant sanctions for the employer.
2. Foreign nationals already lawfully residing in Greece
   If the foreign national already holds a residence permit with the right to work (or is an EU citizen), the EPA may hire them through the standard procedure (notification in the “ERGANI” information system, registration for social security, etc.), without any special additional steps.
3. New entry from abroad – workers’ admission (“metaklisi”)

In order to bring workers from third countries specifically to work through an EPA, the following are required:

1. • an application for approval of admission (metaklisi) filed with the competent Decentralised Administration, based on the biennial quotas for labour needs,
   • issuance of a national entry visa for work by the Greek consular authority in the worker’s country of origin,
   • submission of an application for a residence permit for salaried employment, accompanied by an employment contract with the EPA, the validity of which depends on the issuance of the residence permit.

There is no special statutory “cap” on the number of foreign workers per EPA, beyond the general limits arising from admission quotas and the applicable migration framework.

In all cases, foreign workers employed through an EPA:

• enjoy the same pay and working conditions as nationals in comparable positions,
• are insured in the same way,
• are protected by the principle of equal treatment and by all anti-discrimination rules.

 

8. Key differences between EPA and IGEΕ – at a glance

• Role in relation to the worker
  • EPA: is the employer – it hires workers and assigns them to third parties.
  • IGEΕ: is an intermediary – it does not enter into an employment contract with the candidate but brings employers and jobseekers together.
• Financial requirements
  • EPA: mandatory bank guarantees of significant amounts.
  • IGEΕ: state fee and organisational conditions, but no bank guarantees.
• Qualifications of the responsible person
  • EPA: no specific formal qualifications required for the manager, beyond the absence of serious impediments.
  • IGEΕ: specific qualifications (studies/HR experience), and a formally appointed responsible person.
• Nature of services
  • EPA: provides staff and charges as a service provider to the indirect employer.
  • IGEΕ: charges employers for recruitment/placement services; it may not charge fees to jobseekers.
• Combination of activities
  • EPA: may, under certain conditions, also provide IGEΕ-type services.
  • IGEΕ: cannot operate as an EPA unless it obtains a specific EPA licence.

 

Frequently Asked Questions (FAQ) on EPAs in Greece

1. Is a special minimum capital required to establish an EPA?
   No. The special minimum capital that used to apply in the past has been abolished. Today, only the general minimum capital requirements apply, depending on the company’s legal form (SA, Ltd, PC/IKE, etc.).
2. How long does it take to obtain an EPA licence?
   In principle, if the file is complete and no prohibition decision is issued, after three months from full submission the company may operate as an EPA. In practice, the timeline depends on the completeness of the documentation, the on-site inspection and the workload of the authorities.
3. What guarantee letters are required?
   Two indefinite bank guarantee letters are required:

• €60,000 in favour of the Ministry of Labour, and
• €30,000 in favour of e-EFKA.

These serve as guarantees for the workers’ salaries and social security contributions.

4. Can an EPA employ foreign workers?
   Yes, provided that each foreign worker holds a valid residence permit with the right to work in Greece. For new entries from third countries, an admission (“metaklisi”) procedure and the issuance of a residence permit for salaried employment are required.
5. What is the main difference between an EPA and an IGEΕ?
   An EPA is an employer and assigns its employees to third parties. An IGEΕ is a placement agency: it does not employ the candidates itself but helps employers and candidates find each other.
6. Does the director of an EPA need a specific degree?
   No. The law does not require any particular academic degree or professional experience for an EPA director. By contrast, for IGEΕs the law sets out specific requirements (studies and/or experience in human resources management).

 

How Karpouzis–Lianou & Associates Law Firm can support you

Establishing and licensing a Temporary Employment Enterprise (EPA) in Greece is not a simple, purely formal procedure. It requires a combination of:

• company law (appropriate legal form, articles of association, corporate structure),
• labour law (employer obligations, protection of workers, joint and several liability with the indirect employer),
• migration law (where foreign workers are involved),
• and hands-on experience with the administrative practice of the competent authorities.

 

Our firm has handled complex cross-border mandates for businesses seeking to operate in Greece as providers of human resources services or to integrate an EPA into a wider group structure. We do not limit ourselves to restating the legal framework; our goal is to design for each client a realistic, workable and legally robust operating model, tailored to:

• the business plan,
• time constraints,
• acceptable risk and regulatory expectations.

 

Whether you are interested in:

• setting up an EPA in Greece from scratch,
• adapting your existing company so it can lawfully operate as an EPA, or
• organising the structured use of foreign workers in full compliance with labour and migration law,

 

we can take on:

• the legal structuring,
• the preparation and review of the licensing file,
• and the coordination with independent accountants/tax advisers, engineers, banks and other professionals.

If you are seriously considering entering the Greek market through an EPA or related structures, you are welcome to contact us for a focused, in-depth discussion on your specific project, the options available and the legal steps required.

This article is for general information purposes only and does not constitute legal advice. Each case requires individual assessment, based on its specific facts and the applicable legal framework. For tailored advice, please contact our firm directly.