Employment Law

Employment Law in Cyprus is governed from three different sources – namely: Statute Law, Common Law and Case Law. On one side, the general framework within which the employment will set and operate, is regulated by specific statutes (as referred below) and decisions held by both Local and European Courts. On the other side, more specific matters will be defined in detail upon the formation and arrangement of the employment contract between the employer and employee based on Standard Contract Law principles.

The main employment-related statutes include:

• the Termination of Employment Law 1967, as amended;
• the Social Insurance Law 1980, as amended;
• the Annual Paid Leave Law 1967, as amended;
• the Protection of Maternity Law 1997;
• the Minimum Salaries Law, as amended;
• the Equal Treatment at Work and Employment Law 2004, as amended;
• the Health and Safety at Work Law 1996, as amended;
• the Law Providing for an Employer’s Obligation to Inform Employees of the Conditions Applicable to their Contract or Employment Relationship 2000; and
• the Collective Redundancies Law 2001.

Furthermore, EU regulations and directives regarding employment and labour issues are also applicable in Cyprus following the country’s accession to the European Union in 2004.

The employment relationship in the private sector is generally governed by the terms of the contract of employment, which is concluded freely between employers and employees. As a result, an employment contract is a form of contract, supplemented though by employment law principles. Any term agreed is valid provided that it does not contradict any law. In order to conclude an employment contract, the Employment Law in Cyprus makes clear specifications about the trial period, the notice period and the paid vacation an employee is entitled to.

The Competent Authority in Cyprus for the correct enforcement of employment and lodging of complaints is the Ministry of Labour and Social Insurance. Divided into a number of departments in every district, the Ministry is responsible for the supervision of employment regulations, including those relating to the health and safety of the working environment. Disputes raised between contracting parties, are mediated by the Ministry with the active participation of Trade Unions.     

Employment relationships can be hard and somewhat tricky. It is important for employers and employees alike to have a solid understanding of all the basic matters surrounding the employment law in Cyprus, to adhere closely to labour regulations, deal efficiently and within the law of everyday issues that will often arise and are confronted with. Our goal is to provide our clients with useful information and practical advice in relation to the effective implementation of the main provisions of Cyprus employment law and social insurance system.

Our Firm has advised a considerable number of both employers and employees with the preparation of a specially designed and comprehensive contract that includes the most appropriate terms and conditions and even representing them in cases of disputes. We pride ourselves in hosting an expanded variety of areas of other employment and labour law matters. Moreover, our Civil Department is more than ready to undertake litigation cases representing both employers and dismissed employees before the Industrial Disputes.

Covered areas: wrongful employment dismissal, redundancies, dispute resolution, consulting as to providing written notice of termination for both employer and employee, issues of negligence, health and safety measures in the workplace, safeguarding employees’ rights and freedoms, unfair treatment, discrimination, restrictive covenants, self-employment and consultancy, maternity leave, harassment, social insurance issues etc.  

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