LABOR MARKETGreece to Tackle Labor Shortages by Introducing New Residence Permits for Undeclared Workers

Athens, Greece – Greece is set to introduce a new type of residence permit for third-country citizens. This initiative aims to identify and register individuals who have been residing in Greece without legal documents, providing them with an opportunity for legal employment and contributing to public order and security.

The proposed law applies to individuals who were present in Greece until the end of November 2023. Stringent penalties are envisaged for employers who fail to declare their workers. Approximately 30,000 long-term residents in Greece are expected to be impacted by this modification, which is currently under consideration by Parliament after being added to the insurance bill.

The introduction of this specific provision is timely, considering the strain on the Greek labor market due to the migration of individuals, such as Albanians, to other European countries. Citizens of third countries often find it easier to obtain documentation and access employment markets in other European nations.

Under the new permit, individuals must have a job offer from an employer in Greece, have resided in the country until November 30, 2023, without a residence permit, and completed a minimum of three years of continuous residence in Greece before submitting their application. Prerequisites for the permit include a clean criminal record, a 300-euro deposit, a solemn declaration by the employer committing to employ the applicant, and a passport, even if expired.

Applicants can apply online for the new permit until the end of 2024. The permit is granted for a one-time use and can be valid for three years. Subsequently, holders can apply for another type of residence permit if they meet the required criteria. Health and tax standing are essential for applicants seeking a change of permit.

Critics argue that this measure may have adverse effects on the domestic economy, limiting employment opportunities for Greek citizens. Former Prime Minister Antonis Samaras, among others, contends that the plan may do more harm than good. Despite the ongoing debate in Parliament, proponents of the initiative assert that it will alleviate labor market pressures, reduce undeclared labor, and facilitate a smoother integration into Greek society.

 

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