Service Provision Invoice and Acquisition Title: What you need to know about legal work in Greece
In the Greek labor market, there are various ways an employee can be paid for their services. In addition to the classic salary, two very common forms are the "blockaki" (Service Provision Invoice) and the "acquisition title." Although these options offer flexibility, they often raise questions about whether they are being used correctly or if they hide a standard relationship of dependent labor.
The "blockaki" is mainly used by freelancers who collaborate with one or more businesses. In this case, the worker is considered an independent contractor and not an employee. They are responsible for paying their own social security contributions to EFKA and are usually not entitled to Christmas, Easter, or holiday bonuses, unless there is a different written agreement.
On the other hand, the "acquisition title" (formerly known as an expense receipt) is a solution for individuals who do not have their own business but provide occasional services. For example, someone might be paid this way for a short speech or a seminar. However, there are strict financial limits on how much money one can earn annually in this way, as it is not intended for permanent employment.
The main issue of concern for the authorities is so-called "disguised salaried employment." This happens when a worker is paid via "blockaki" but actually works fixed hours, is at the company's office daily, and follows specific instructions, just like a regular employee. In these cases, the law considers that the company is trying to avoid the cost of a regular hiring.
In conclusion, the choice between these forms of work depends on the actual nature of the collaboration. It is very important for both employers and employees to know the legal framework to avoid mistakes. The correct use of these tools offers legal flexibility, while their abuse can lead to heavy fines from the labor inspectorate.