Greece

Implementing legislation

Presidential decree no. 219 of 18.5.1991, as amended

Proper notice

•	1 month if less than or equal to 1 year
•	2 months if more than 1 year and less than or equal to 2 years
•	3 months if more than or equal to 3 years and less than 4 years
•	4 months if more than or equal to 4 years and less than 5 years
•	5 months if more than or equal to 5 years and less than 6 years
•	6 months if more than or equal to 6 years

Indemnity or compensation or both

Indemnity only

Calculation of indemnity/compensation

Capped at a maximum of the average annual commission over last 5 years or, if less than 5 years, over duration of agency

Pre-termination commission

Yes

Post-termination commission

Yes (usually the Greek courts calculate a reasonable period as 2-6 months)

Back commission

Yes

Other comments

The presidential decree applies only to written agency contracts

Restrictive Covenants

Implementing Legislation

Presidential Decree no. 219/91

1) Under Greek law is it possible to have a restraint of trade clause operating during the agency agreement and, if so, is it subject to any qualifications?

Under Greek Law there is no provision expressly allowing or restricting a restraint of trade clause in an agency agreement. However, both case law and legal theory accept that the agent is under an obligation not to engage in competitive activities and so is under an obligation to observe a restraint of trade clause, in accordance with the general principles of Greek law on good faith and business morals (article 288 of the Greek Civil Code). This view is further supported by article 4 of the Presidential Decree, which states that: “In performing his activities a commercial agent must look after his principal's interests and act dutifully and in good faith.” This has been interpreted to include an obligation of the agent not to engage in competitive acts which could endanger his principal’s interests. 

In view of the above it can be assumed that a restraint of trade clause will be considered as a valid clause binding the agent, who is deemed to be acting in the interests of his principal. Furthermore, even if no such clause exists in the agreement, the agent is nevertheless under an obligation not to engage in such activities (See Athens Multi Member Court of First Instance, decision no. 11486/1980, Athens Multi Member Court of First Instance, decision no. 14284/1981).

2) Under Greek law is it possible to have a restraint of trade clause operating following the termination or expiry of the agency agreement and, if so, is it subject to any qualifications?

It is possible under Greek law to have a restraint of trade clause operating following the termination or expiry of the agency agreement.

Article 10 of the Presidential Decree states that such a restraint of trade clause is valid only if:

1. it is in writing; and
2. it relates to the geographical area or the group of customers and the geographical area entrusted to the commercial agent and to the kind of goods covered by his agency under the contract.

Article 10(3) of the Presidential Decree states that a restraint of trade clause is not valid for more than a year after the termination of the contract.

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