Employment Contracts and Laws in Cyprus

1. What are the legal requirements for an employment contract in Cyprus?


In Cyprus, the legal requirements for an employment contract include:

1. Offer and Acceptance: An employment contract must be based on a valid offer by the employer and an unconditional acceptance by the employee.

2. Written Form: The law does not require employment contracts to be in writing; however, it is recommended to have a written agreement to avoid potential misunderstandings or disputes.

3. Identity of Parties: The employment contract should clearly identify the employer and employee, stating their full names, addresses, and contact information.

4. Job Description: The contract should specify the nature of work, job title, duties, responsibilities, and working hours.

5. Start Date and Duration: The start date of the employment should be stated in the contract as well as its duration (e.g., permanent/ fixed-term/ temporary).

6. Remuneration: The contract must specify the salary/wages agreed upon for the job position.

7. Probationary Period: If a probation period is agreed upon between the parties, it should be included in the agreement with its terms and conditions.

8. Benefits and Allowances: Any benefits or allowances provided by the employer must be specified in detail in the employment contract.

9. Statutory Leave Entitlements: Employment contracts must include information about annual leave entitlements, sick leave entitlements, maternity/paternity leave entitlements, etc., as required by law.

10. Confidentiality Clause: Employers may include a confidentiality clause in employment contracts to protect sensitive company information from being disclosed by employees during or after their employment.

11. Termination Clause: The grounds and procedures for terminating an employment contract should be included in writing.

12. Non-Competition Clause: A non-competition clause may be included in an employment contract if it is necessary to protect legitimate business interests of the employer after termination of employment.

13. Governing Law and Jurisdiction: Employment contracts are subject to the laws of Cyprus, and the contract should specify the jurisdiction in case of any dispute.

14. Health and Safety: Employers are required to provide a safe working environment for their employees. The employment contract should include any necessary health and safety measures that the employee must abide by.

15. Employee Rights and Duties: An employment contract should outline the general rights and duties of employees, such as confidentiality, non-discrimination, and good faith obligations.

It is recommended to seek legal advice when drafting an employment contract to ensure that it complies with all relevant laws and regulations in Cyprus.

2. Is it mandatory for an employment contract to be in writing in Cyprus?


Yes, it is mandatory for an employment contract to be in writing in Cyprus. According to the Employment Contracts Law, every employee must be provided with a written statement of employment within one month from the start of their employment. This statement should include details such as the names and addresses of both the employer and employee, job title, duties and responsibilities, wages and benefits, working hours, duration of contract (if not permanent), notice period, etc. Both parties must sign this written statement for it to be considered a valid employment contract.

3. Can an employer modify the terms of an employment contract without the employee’s consent in Cyprus?


No, an employer cannot modify the terms of an employment contract without the employee’s consent in Cyprus. Both parties must agree to any changes made to the contract, and any modifications must be formalized in writing and signed by both parties. If the employer unilaterally changes the terms of the contract without the employee’s consent, it may be considered a breach of contract. The employee may have grounds to file a grievance or take legal action against their employer.

4. Are there any specific laws or regulations governing part-time contracts in Cyprus?


Yes, there are specific laws and regulations governing part-time contracts in Cyprus. Some of the most important ones include:

1. The Part-Time Employees (Prevention of Less Favourable Treatment) Law of 2007: This law aims to prevent discrimination against part-time workers and ensures that they have the same rights and benefits as full-time employees, including in terms of pay, training opportunities, and access to promotions.

2. The Employment (Termination of Temporary or Part-Time Employment) Law of 2015: This law requires employers to provide written notice to part-time employees when their employment is terminated. The notice period should be at least equal to the period for which the employee worked for the employer.

3. The Minimum Wages Order (Amendment) Law: This law sets out the minimum wage rates for different categories of workers, including part-time employees.

4. The Holidays with Pay Laws: These laws entitle all employees, including part-timers, to paid annual leave and public holidays.

5. The Social Insurance Contributions Laws: These laws require employers to contribute towards social security for their part-time employees in line with their actual working hours.

6. The Occupational Health and Safety Regulations: These regulations require employers to provide a safe work environment for all employees, including part-timers.

5. What are the maximum working hours allowed under a standard employment contract in Cyprus?


The standard working hours allowed under a standard employment contract in Cyprus are 40 hours per week. However, this may vary depending on the industry and job role, with some professions having longer working hours. Overtime may also be required to be worked within certain industries or job roles.

6. In case of termination, what severance pay is owed to an employee under a fixed-term contract in Cyprus?

According to the Cyprus Employment Law, fixed-term contracts can be terminated before their expiration date only in certain circumstances and with a valid reason. If an employee is terminated from a fixed-term contract without cause, they are entitled to severance pay. The amount of severance pay owed depends on the length of time the employee was employed under the fixed-term contract.

If an employee is terminated during the first two years of employment under a fixed-term contract, they are entitled to receive one week’s salary for each completed year of service. If they have been employed for more than two years, they are entitled to two weeks’ salary for each completed year of service.

In addition, if the termination is deemed unfair or unlawful, the employee may also be entitled to compensation for any financial losses incurred as a result of the termination. This may include lost wages, bonuses, and benefits that would have accrued during the remainder of the contract period.

It is important to note that these amounts may vary depending on the terms stated in the individual’s employment contract or collective agreement. It is recommended to consult with a legal professional in case of termination from a fixed-term contract in order to determine one’s specific rights and entitlements.

7. Are employees entitled to annual leave and sick leave under their employment contracts in Cyprus?

Employees in Cyprus are entitled to annual leave and sick leave under their employment contracts, as outlined by the Labour Law 1993. These entitlements vary depending on the length of service and type of employment contract.

Annual Leave:
– Employees who have worked for at least six months but less than three years are entitled to 20 working days of paid annual leave.
– Employees who have worked for three years or more are entitled to 24 working days of paid annual leave.
– Employees who are under the age of 18 or over the age of 60 are entitled to an extra six working days of paid annual leave.
– Annual leave must be taken within the same calendar year, unless otherwise agreed upon by both parties.

Sick Leave:
– Employees are entitled to fully paid sick leave if they provide a medical certificate from a registered doctor.
– The length of sick leave varies based on the length of service:
– During the first year of employment, employees are entitled to one month’s full pay and two months’ half pay;
– During the second year, employees are entitled to two months’ full pay and four months’ half pay;
– After four years, employees are entitled to five months’ full pay and five months’ half pay;
– After nine years, employees are entitled to eight months’ full pay and eight months’ half pay;
– After fifteen years, employees are entitled to ten months’ full pay and ten months’ half pay.
– Employers may request proof from a medical officer that justifies an employee’s absence from work due to illness.

Additionally, employees may also be entitled to maternity/paternity leave, marriage leave, compassionate leave, and public holiday entitlements under their employment contracts in Cyprus. The specifics of these entitlements may vary depending on individual circumstances and contractual agreements.

8. Can employers include non-compete clauses in employment contracts and are they enforceable in Cyprus?


It is common for employers in Cyprus to include non-compete clauses in employment contracts. These clauses restrict employees from engaging in similar work or trade with competitors for a certain period of time after leaving the company.

Non-compete clauses are generally enforceable in Cyprus, provided they meet certain criteria. They must be reasonable in terms of duration, geographic scope, and the type of work restricted. They must also be necessary to protect the legitimate interests of the employer, such as trade secrets or confidential information.

If a non-compete clause is found to be overly broad or unreasonable, a court may strike it down or modify its terms. Therefore, it is important for employers to carefully draft these clauses to ensure their enforceability.

It is worth noting that non-compete clauses are not enforceable against employees who have been terminated without just cause. In such cases, the employee may be released from this restriction and may compete freely with their former employer.

In summary, while non-compete clauses are generally enforceable in Cyprus, they must be carefully crafted and reasonable in order to be enforced by a court.

9. Is it legal for employers to ask employees to work on public holidays without extra pay under their contracts in Cyprus?


The answer to this question depends on the specific details outlined in an employee’s contract. According to the Holiday Law (78(I)/2001), employees have the right to receive double pay for any work performed on public holidays, unless their employment contract states otherwise. This means that if an employee’s contract explicitly states that they are required to work on public holidays without extra pay, then it would be legal for the employer to ask them to do so. However, if the contract does not mention anything about public holiday pay, then the employer is legally obligated to provide double pay for any work performed on a public holiday.

10. What is the minimum wage requirement stated by law for an employment contract in Cyprus?


As of January 2021, the minimum wage requirement for full-time employment in Cyprus is €880 per month. For part-time employees, the minimum wage is calculated on a pro rata basis.

11. Does a probation period need to be specified in an employment contract in Cyprus, and if so, what is its duration limit?


Yes, a probation period must be specified in an employment contract in Cyprus. According to the legislation, the duration of the probation period should not exceed six months for blue-collar workers and nine months for white-collar workers. However, if there is a collective agreement in place, it can specify a longer or shorter probation period.

12. Can employers terminate employees without cause under the terms of an indefinite contract in Cyprus?


Yes, employers in Cyprus can terminate employees without cause under the terms of an indefinite contract. However, they must follow the proper procedures and provide a valid reason for termination, such as redundancy or poor performance. Employees may also be entitled to compensation or notice periods outlined in their employment contracts.

13. Is there a mandatory notice period that employers must give before terminating an employee’s contract in Cyprus?


Yes, employers in Cyprus are required to give notice before terminating an employee’s contract. The length of notice period depends on the length of service of the employee:

– For employees who have been employed for less than 26 weeks, the notice period is at least 1 week.
– For employees who have been employed for 26 weeks or more but less than 4 years, the notice period is at least 2 weeks.
– For employees who have been employed for 4 years or more, the notice period increases by one week for each completed year of service, up to a maximum of 4 weeks.

In cases where there is a collective agreement in place, the notice period may be longer. Additionally, certain circumstances such as gross misconduct or redundancy may allow employers to terminate an employee’s contract without providing a notice period. Employees also have the right to request a reason for their dismissal and to appeal against their termination within two months.

14. Are there any limitations on trial periods that can be included in employment contracts under the law of Cyprus?


According to the Employment Contracts Law of 2000, trial periods are limited to a maximum duration of six months for permanent employees and three months for temporary or seasonal employees. Any provision in an employment contract that exceeds these time limits is considered null and void. Additionally, during the trial period, employers are not allowed to terminate the employment contract without notice or just cause. The employee is also entitled to receive their full salary and benefits during the trial period.

15. How do collective bargaining agreements impact individual employment contracts within a company operating in Cyprus?


In Cyprus, collective bargaining agreements (CBAs) play a significant role in shaping individual employment contracts within a company. Here are some of the ways that CBAs impact individual contracts in the Cypriot context:

1. Higher wages and benefits: CBAs typically contain provisions for minimum wage rates and benefits for employees, which are often higher than those offered by individual employment contracts. As a result, companies operating in Cyprus may be required to adjust their individual contracts to align with the terms set out in the CBA.

2. Working conditions: CBAs also cover working conditions such as working hours, breaks, rest periods, and vacation time. These provisions may have an impact on individual employment contracts as companies will need to comply with these requirements when drafting individual employee agreements.

3. Job security: Many collective bargaining agreements include provisions relating to job security, such as limits on dismissals or rules for handling layoffs. Companies must incorporate these restrictions into their individual contracts when applicable.

4. Grievance procedures: CBAs often outline grievance procedures and dispute resolution mechanisms that employees can use if they feel their rights have been violated. Employers must ensure that their individual contracts align with these procedures to avoid potential conflicts.

5. Restrictive covenants: In some cases, CBAs may include language aimed at limiting or restricting certain practices or behaviors by employees, such as non-compete clauses or confidentiality agreements. Companies must ensure that their individual contracts do not conflict with any restrictive covenants outlined in the CBA.

It is essential for companies operating in Cyprus to be aware of all relevant collective bargaining agreements and ensure that their individual employment contracts comply with them to avoid legal issues and maintain positive relationships with their employees.

16. Can employers transfer employees from one location to another within the country without amending their existing contracts?


In most cases, employers are legally allowed to transfer employees within the same country without amending their existing contracts. This is because employment contracts usually include a clause that allows for reasonable changes to the terms and conditions of employment.

However, in some cases, an employee’s contract may specifically state that they are only hired for a specific location, in which case a transfer would require an amendment to the contract.

Employers should also consider any potential implications of the transfer on the employee, such as changes in commute time or cost of living. It is important for employers to communicate openly and transparently with employees about any potential transfers and discuss any concerns or considerations.

17.Are there any restrictions on employing foreign nationals under regular or temporary contracts inCyprus?


Yes, there are certain restrictions on employing foreign nationals in Cyprus under regular and temporary contracts. These include:

1. Work permit: Non-EU nationals who wish to work in Cyprus must obtain a work permit from the Civil Registry and Migration Department.

2. Quota limitations: The government of Cyprus sets annual quota limits for different categories of foreign workers based on the current labor market needs.

3. Priority given to EU citizens: Wherever possible, priority is given to EU citizens over non-EU citizens for employment in Cyprus.

4. Occupation-specific requirements: Certain occupations are restricted for foreign nationals or require additional qualifications or authorization from relevant authorities before they can be employed.

5. Language proficiency: Depending on the job role, a certain level of proficiency in either Greek or English may be required.

6. Age restrictions: Foreign nationals under the age of 18 are not allowed to work in any occupation in Cyprus unless they hold a residence permit which specifically permits them to do so.

7. Valid visa/residence permit: Non-EU nationals must hold a valid visa or residence permit entitling them to work in Cyprus.

8. Change of employer/sponsorship: Foreign workers cannot change their employer or sponsor without obtaining prior approval from the relevant authorities.

9. Termination of contract: Contract termination due to misconduct by non-EU employees may result in deportation and cancellation of residency status.

It is advisable for employers and foreign employees to consult with an immigration lawyer to ensure compliance with all legal requirements and avoid any potential legal issues.

18.What discrimination policies should be included and enforced within all employment contracts according toCyprus’s laws?


Some discrimination policies that should be included and enforced within all employment contracts according to Cyprus’s laws are:

1. Non-Discrimination: Employment contracts should state that employers will provide equal opportunities to all employees without any discrimination based on race, color, religion, gender, national origin, age, disability or any other characteristic protected by law.

2. Harassment and Bullying: The contract should include a policy against harassment and bullying in the workplace. This includes sexual harassment, verbal abuse and any other form of intimidating behavior.

3. Accommodation for Disabilities: Employers are required to make reasonable accommodations for employees with disabilities as long as it does not cause undue hardship on the employer.

4. Equal Pay: The contract should state that employees will receive equal pay for the same work or work of equal value regardless of their gender.

5. Parental Leave: The contract should outline the rights of employees regarding parental leave and ensure that they are not penalized or discriminated against for taking such leave.

6. Age Discrimination: It is illegal to discriminate against an employee based on their age. The employment contract must reflect this policy.

7. Pregnancy Discrimination: An employment contract must state that discrimination against pregnant employees is prohibited and they have a right to take maternity leave without risk of losing their job or being discriminated against upon return to work.

8. Marital Status Discrimination: It is unlawful to discriminate based on marital status in Cyprus; therefore, this must be included in the employment contract.

9. Religious Beliefs: Employers must respect an employee’s religious beliefs and practices unless it conflicts with job duties or creates a safety hazard.

10. Protection for Whistleblowers: Employees who report illegal activities or misconduct within their workplace must be protected from retaliation or discrimination as a result of making such reports.

These policies should be clearly stated in employment contracts and strictly enforced by employers in compliance with Cyprus’s anti-discrimination laws.

19.Can an employee be subject to disciplinary action or termination for breaches of their employment contract in Cyprus?


Yes, an employee can be subject to disciplinary action or termination for breaches of their employment contract in Cyprus. This is because both the employer and employee are bound by the terms and conditions stated in the employment contract, which is a legally binding document. If either party violates the terms of the contract, it can lead to disciplinary action or termination. However, before taking any such action, the employer must follow proper procedures and provide the employee with a fair opportunity to respond to any allegations against them.

20. What legal protections are available to employees who report violations of their contracts or labor laws by their employer in Cyprus?


Employees in Cyprus are protected by the Employment (Termination of Employment) Law, which prohibits employers from terminating an employee’s contract for reporting a violation of their employment contract or labor laws. If an employee is terminated for this reason, they have the right to challenge the termination and seek reinstatement or compensation.

In addition, the Protection of Whistleblowers Law provides protection to employees who report certain types of misconduct in the workplace, such as corruption, fraud, and health and safety violations. Under this law, an employee who reports such misconduct is protected from retaliation or victimization by their employer.

Employees also have the right to file a complaint with the Ministry of Labor, Welfare and Social Insurance if they believe their employer has violated their employment contract or labor laws. The Ministry has the authority to investigate complaints and take appropriate action against employers found in violation.

Furthermore, if an employee believes that their rights under their employment contract have been infringed upon by their employer, they have the right to seek legal recourse through the courts. The courts may order remedies such as compensation or reinstatement if they find in favor of the employee.

It is important for employees to keep records of any violations or mistreatment by their employer and to seek legal advice before taking any further steps. This will ensure that their rights are protected and they receive fair treatment under Cyprus’ labor laws.