Department of Labour

Temporary Employment- Licence Issue




GUIDE FOR THE TEMPORARY AGENCY WORK (TAW) LAW AND REGULATIONS 2012


This Guide was prepared by the Labour Department of the Ministry of Labour , Welfare and Social Insurance regarding the applicable legislation and in particular Τhe Temporary Agency Work Law of 2012 (N.174/2012) and Regulations of 2012 (K.Δ.Π 517/2012). This Guide provides general information only and should not be considered as complete and authentic interpretation of the provisions of the Law. More details are provided by the relevant department of the Ministry of Labour and Social Insurance.


Purpose

The purpose of the Temporary Agency Work Law of 2012 is to ensure the protection of temporary agency workers and to improve the quality of temporary employment through the principle of equal treatment and recognition of temporary agencies as employers. The purpose of the Regulations of 2012 is to regulate the terms and conditions for the implementation of the licensing system, certification and inspection of temporary agencies.

Application

The Law applies to:

- employees through a Temporary Work Agency with employment contract or employment relationship, who are assigned to user undertakings
- Public and private companies which are Temporary Work Agencies or user undertakings which engage in economic activity, regardless of whether for profit or conducting the same activities as TWA either as a principal or ancillary.

Exceptions

The Law does not apply to employment contracts or employment relationships concluded under a specific program training, integration or training, which is subsidized by public authorities or organized by the public sector.

It also does not apply to the employment of temporary workers in the Republic in the Construction and tourism Sectors.

Establishment of Temporary Work Agency (TWA)

- Fulfillment of the conditions of Section 7 of the Law
- License is required for TWA or written statement to the competent authority for the operation of branch of TWA.
- Deposit of bank guarantee amounting to € 100.000 to the competent authority

Requirements for Authorization

- In case of operation of the TWA by a natural person, the person should be a citizen of the Republic or another European Member State. Also this person should not be subject to bankruptcy or other legal disability.
- In case of operation of the TWA by a legal person, that person should be incorporated under the laws of the Republic or any other European Member State, has a registered office or place of work in the Republic, and should not be in the process of liquidation or dissolution.
- In case of operation of the TWA by a natural person, that person or where operation of the TWA by a legal person, the Directors of the Company, or in case of a partnership, the partners and the person responsible for the operation of the TWA:

· must have not been convicted for certain offenses listed in Section 7 (1) (c) of the Law.

· must not perform parallel specific business activities referred to in Section 13 (2) of the Law with the exception of the operation of private employment agency as long the agency has been authorized.

Requirements and Qualifications of the person responsible for the operation of TWA

- To be a citizen of the Republic or another European Member State
- Has minimum necessary qualifications referred in Article 8 (1) of the Law and in particular to hold one of the following:

§ recognized diploma, university degree or title in the subjects referred to in Section 8 (1) (a) of the Law or
§ recognized diploma, university degree or qualification in a subject other than that referred to in Section 8 (1) (a) of the Law and post graduated degree in a subject of career guidance or labour market or human resource management or.
§ recognized diploma, university degree or title to any object, and it has at least two years of professional experience in career guidance or labour market or human resource management that was acquired after obtaining the degree.

The Temporary Work Agency within (2) months from the date of issue of the license is certified to the minimum of building infrastructure, consisting of workplace area at least thirty square meters (30m2) and have the necessary technical equipment.


Obligations and Supervision

The application for a license must be submitted before commencing business.

The license is issued according to the given form and is valid for a three-year period from the date of issue. The license can be renewed only if the required conditions continue to exist.

The license’s holder must notify in writing (within one month) the competent authority (Department of Labour) for any substantial change in the information provided (change of address, change of the person responsible for the operation of theTWA etc….(Section 11 of the Law)).

In case of refusal, the applicant is entitled within (30) days from the day he/she is informed about the decision, to apply in writing to the Minister of Labour and Social Insurance, requesting a review of this decision.

Assignment and conditions of employment of temporary workers

- Maximum 4 months initially, with the possibility of written renewal for the same user undertaking for a specified period which if you add in the time of the original assignment will not show total period exceeding 12 months.
- The principle of equal treatment in relation to temporary workers who will be considered as be employed directly in the user undertaking.
- Access to facilities etc that are in the user undertaking.
- Access to information regarding the vacancies that exist in the user undertaking and can be hired into permanent positions.
- Representation of temporary agency workers in the temporary agency work and as part of the user undertaking ( in the later for health and safety issues also)

Liability of TWA and User Undertaking

Both are jointly and severally liable to the temporary workers in order to meet the wage rights. The liability of the user undertaking shall be suspended upon the wage rights can be satisfied by the fulfillment of the bank guarantee.


Enforcement

The competent authority may appoint inspectors for the effective implementation of the provisions of the Law. The Law provides provisions defining the powers and duties of Inspectors. Whoever prevents the Inspector in the exercise of his duties, shall be punished with imprisonment not exceeding two (2) months or a fine not exceeding € 5.000 or both penalties.

Administrative Sanctions

Where the competent authority finds after investigation that a TWA or branch of TAW operates in violation of it’s license or branch in violation of the provisions of this Law and the Regulations, may alternatively or cumulatively :
· to impose an administrative fine of up to € 2.500
· to suspend the operation of TWA or branch.

Revocation

The competent authority shall revoke a license of a temporary work agency if:
- the license’s holder or the person responsible for the operation of TWA is convicted of an offense under the provisions of Section 7 (1) (c) of the Law and in the latter case has not been replaced in accordance with the provisions of Section 7 (3) of the Law.
- the TWA engages in other activities in violation of Section 13 (2).
- during inspection is found that some of the conditions of the license are not met and the license’s holder refuses to comply with the instructions of the competent authority for compliance during the period specified.
- non deposit to the Department of Labour of the bank guarantee
- the license’s holder has prepared a forged document
- the license’s holder dies without prejudice to transfer to their representatives under the Law.
- the license’s holder serves in bankruptcy or under any other legal disability in case of a legal person is dissolved or enters into liquidation proceedings.


Criminal Offenses

Person who:
- operates a TWA without obtaining license
- operates a branch without prior written notice to the competent authority
- performs alongside some of the business activities covered by Section 13 of the Law.
- Infringes or fails to comply with the provisions of Section 14/15 or 16.

is guilty of an offense and is liable on conviction to imprisonment not exceeding one year or to a fine not exceeding € 10.000 or both of these penalties.



License fees

The fees payable are as follows:

a) for submitting an application for issue of license a Temporary Work Agency one hundred euro (€ 100)
b) to permit temporary Work Agency operation three hundred euro (€ 300)
c) renewal license of Temporary Work Agency three hundred euro (€ 300)
d) for each duplicate license of Temporary Work Agency one hundred euro (€ 100)

The authorization procedure is carried out within three (3) months. The period starts from the time of submission of all documents.

The authorization procedure is carried out within three (3) months. The period starts from the time of submission of all documents.

Information

For more information please contact the Department of Labour:

Tel: 22400869
Fax:22400809

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