Cyprus Labour Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Constitution of the Republic of Cyprus
  • Industrial Relations Code (Law 156/2002)
  • Social Insurance Law (Law 19/2010)
  • Termination of Employment (Law 21/2012)
• Legal Characteristics:
  • Protects employee rights, including working hours, leave, severance pay, and non-discrimination.
  • Promotes social dialogue and collective bargaining.
  • Ensures the fairness and sustainability of the social security system.

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts (maximum 30 months)
• Contractual Terms:
  • Mandatory terms: job description, remuneration, working hours, leave, severance pay.
  • Optional terms: probation period, confidentiality agreement, non-compete clause.
• Language and Currency:
  • Contracts must be in Greek or Turkish.
  • Currency is Euro (EUR).

Working Time Regulations

• Standard Working Hours: 40 hours per week, Monday to Friday.
• Rest Days and Breaks: Minimum of 24 hours rest per week, and at least 12 hours rest after each working day.

Leave Policy

• Annual Leave: 20 days per year for employees working 5 days per week, 24 days per year for those working 6 days per week.
• Public Holidays: 15 statutory public holidays.
• Special Leave:
  • Sick leave: Paid sick leave after 4 days of illness, covered by social insurance.
  • Maternity leave: 18 weeks paid maternity leave, covered by social insurance.
  • Paternity leave: 2 weeks paid paternity leave within 16 weeks of child's birth, covered by social insurance.
  • Parental leave: Up to 18 weeks unpaid parental leave per child.

Employee Severance and Termination of Contract

• Notice Period: Varies from 1 week to 8 weeks, depending on years of service.
• Severance Pay: Ranges from 2 weeks' to 4 weeks' salary, based on years of service.
• Unfair Dismissal Protection: Prohibits unfair dismissal based on discrimination, retaliation, etc.

Taxation

• Personal Income Tax:

  • Salary Range (EUR)	Tax Rate
    0 - 19,500	0%
    19,501 - 28,000	20%
    28,001 - 36,300	25%
    36,301 - 60,000	30%
    60,001 and above	35%

• Social Insurance Contributions:

  • Employee: 7.8%
  • Employer: 7.8%

Health Insurance

• Insurance Scheme: Universal healthcare system funded by social insurance contributions.
• Coverage: Includes basic healthcare, dental care, and hospitalization.

Compensation and Benefits

• Minimum Wage: Varies by industry, with no minimum wage in certain sectors.
• Salary Structure: Base salary, bonuses, allowances.

Work Permits and Visas

• Permit Requirement: Non-EU/EEA citizens require a work permit.
• Application Process: Apply through the Cyprus Department of Labour.

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Cyprus, but must be reasonable and not unduly restrict an employee's employment opportunities.
• Common Provisions:
  • Confidentiality clause: Prohibits disclosure of confidential information.
  • Non-compete clause: Prohibits working for a competitor for a specified period.

Training and Development

• Legal Requirements: Employers must provide safety training and skills development training to employees.
• Government Support: Government provides training and development programs, such as apprenticeships and vocational training courses.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, religion, gender, age, or disability.
• Enforcement: The Equality and Anti-Discrimination Commission is responsible for enforcing anti-discrimination laws.

Remote Work Policy

• Legal Framework: No specific legal framework for remote work in Cyprus.
• Tax and Insurance Implications: Remote work may impact tax and social insurance contributions.

Authoritative Website Addresses

• Cyprus Department of Labour: https://www.mlsi.gov.cy/
• Social Insurance Services of Cyprus: https://www.ssafunds.org.cy/