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Employment Law in Cyprus

Employment Law in Cyprus

Navigating the complexities of employment law in Cyprus can be challenging for both employers and employees. Our law firm specialises in Cyprus Employment Law and Disputes, offering expert legal advice and representation to ensure that your rights and interests are protected. With a deep understanding of domestic and European Union (EU) laws, our experienced legal team can guide you through various aspects of employment law, including contract negotiations, employee rights, termination procedures, and dispute resolution.

Cyprus Employment Law

Employment law in Cyprus governs the relationship between employers and employees, providing a legal framework for both parties’ rights and obligations. The Cypriot legal system is based on common law principles, with a mix of domestic and European Union (EU) laws. This article aims to provide a detailed overview of employment law in Cyprus, focusing on key legislation, rights, and obligations of both employers and employees.

The primary sources of employment law in Cyprus include:

The Constitution of the Republic of Cyprus

The Constitution, enacted in 1960, contains various provisions related to labor rights and equality, including the right to work (Article 20), the right to join trade unions (Article 28), and the prohibition of discrimination (Article 28).

The Termination of Employment Law (24/1967)

This law sets out the rules and procedures for the termination of employment, including notice periods, reasons for termination, and severance pay entitlements.

The Annual Paid Leave Law (8/1967)

The Annual Paid Leave Law stipulates the minimum annual leave entitlement for employees and the conditions under which this leave can be taken.

The Protection of Maternity Law (100(I)/1997)

This law outlines the rights and protections afforded to pregnant employees and new mothers, including maternity leave, protection from dismissal, and the right to return to work.

The Equal Treatment in Employment and Occupation Law (58(I)/2004)

This law implements the EU directives on equal treatment, prohibiting discrimination based on race, religion, sex, age, disability, or sexual orientation in the workplace.

The Minimum Wage Law (21/1973)

The Minimum Wage Law establishes a statutory minimum wage for certain categories of employees, which is reviewed periodically by the government.

The Social Insurance Law (59(I)/2010)

This law provides for the establishment and operation of a social insurance system in Cyprus, covering areas such as sickness, maternity, unemployment, and retirement benefits.

Employment Contracts

Types of Contracts

Employment contracts in Cyprus can be either written or verbal, although it is advisable to have a written agreement to avoid any misunderstandings. The contract may be for a fixed term or indefinite duration. Fixed-term contracts may be renewed, but after a certain number of renewals or a specific period, they may be considered indefinite contracts.

Terms and Conditions

Employment contracts must include the following terms and conditions:

  • Names and addresses of the employer and employee
  • Job title and description
  • Date of commencement of employment
  • Place of work
  • Hours of work
  • Wage or salary, including any overtime or bonus provisions
  • Annual leave entitlement
  • Notice period for termination
  • Any probationary period

Employee Rights and Protections

Working Hours

The normal working week in Cyprus is 40 hours, spread over five or six days. Employees are entitled to at least one rest day per week, usually Sunday. Overtime work is regulated, and employees are entitled to overtime pay.

Annual Leave

Employees are entitled to a minimum of 20 days of paid annual leave per year, increasing to 24 days after five years of service. The employer determines the timing of the annual leave, considering the employee’s preferences and operational requirements.

Maternity Leave

Pregnant employees are entitled to 18 weeks of maternity leave, with additional leave for multiple births or complications during pregnancy. The leave can be taken before or after the birth, but at least nine weeks must be taken immediately following the birth. Employees are entitled to receive maternity benefits from the Social Insurance Fund during this period, provided they meet the eligibility criteria.

Paternity Leave

Fathers are entitled to two weeks of paternity leave within the first 16 weeks after the birth of their child. Paternity leave is paid by the Social Insurance Fund, provided the father meets the eligibility criteria.

Parental Leave

Both parents are entitled to 18 weeks of unpaid parental leave per child, which can be taken up until the child reaches the age of eight. Parental leave can be taken in one continuous period or in separate blocks, subject to the employer’s agreement.

Sick Leave

Employees are entitled to sick leave, subject to the submission of a medical certificate. The Social Insurance Fund provides sickness benefits to eligible employees, starting from the fourth day of absence and up to a maximum of 156 days per year.


Discrimination in the workplace is prohibited based on race, religion, sex, age, disability, or sexual orientation. The Equal Treatment in Employment and Occupation Law (58(I)/2004) provides for the principle of equal treatment and protection against discrimination, harassment, and victimization.

Termination of Employment

Notice Period

The Termination of Employment Law (24/1967) stipulates the minimum notice period for terminating an employment contract, which varies depending on the length of service:

  • Up to 26 weeks of service: no notice required.
  • 26 weeks to 51 weeks of service: one week’s notice.
  • 52 weeks to 103 weeks of service: two weeks’ notice.
  • 104 weeks to 155 weeks of service: four weeks’ notice.
  • 156 weeks to 207 weeks of service: five weeks’ notice.
  • 208 weeks to 259 weeks of service: six weeks’ notice.
  • 260 weeks or more of service: eight weeks’ notice.

Reasons for Termination

Employers can terminate an employment contract for various reasons, including redundancy, employee misconduct, or inability to perform duties. Employees may also terminate their contracts for personal reasons or due to a breach of contract by the employer.

Severance Pay

Employees who have been continuously employed for at least 104 weeks and are dismissed for reasons other than serious misconduct are entitled to severance pay. The amount of severance pay depends on the employee’s length of service and their weekly wage at the time of termination.

Collective Labour Law

Trade Unions

Employees have the constitutional right to form and join trade unions. Trade unions in Cyprus play a significant role in collective bargaining, the negotiation of working conditions, and the protection of employee rights.

Collective Agreements

Collective agreements are negotiated between employers or employer associations and trade unions. These agreements typically cover issues such as wages, working hours, holidays, and other employment conditions. Collective agreements are legally binding on the parties involved and can be enforced in court.

Dispute Resolution

Labour Disputes Court

The Labour Disputes Court is a specialised court dealing with employment-related disputes, including unfair dismissals, discrimination claims, and disputes arising from collective agreements. The court has jurisdiction over both individual and collective labour disputes.

Mediation and Conciliation

Alternative dispute resolution methods, such as mediation and conciliation, are encouraged to resolve labour disputes amicably. The Ministry of Labour, Welfare, and Social Insurance operates a free mediation and conciliation service for employment disputes.

Cyprus Employment Law

Our Services

Employment Contract Drafting and Review

Whether you are an employer seeking to draft a comprehensive employment contract or an employee who wishes to have their contract reviewed, our legal team is here to help. We ensure that your employment contracts comply with Cyprus Employment Law, covering essential terms and conditions, such as job description, salary, working hours, and leave entitlements.

Employee Rights and Protections

Our legal team advises both employers and employees on their rights and obligations under Cyprus Employment Law. We provide guidance on a wide range of employee rights and protections, including working hours, annual leave, maternity and paternity leave, parental leave, sick leave, and discrimination in the workplace.

Termination of Employment

The termination of employment can be a complex and sensitive matter for both parties involved. Our legal experts can assist you in navigating the termination process, ensuring compliance with the required notice periods and severance pay obligations, and advising on the grounds for dismissal and potential remedies in cases of unfair dismissal.

Collective Labour Law

We provide legal advice and representation on collective labour law matters, including trade union negotiations and collective agreements. Our legal team can help you understand your obligations under these agreements, as well as offer guidance on engaging in collective bargaining processes and adhering to the terms of collective agreements.

Dispute Resolution

Our law firm specialises in resolving employment-related disputes, whether through litigation in the Labour Disputes Court or alternative dispute resolution methods such as mediation and conciliation. We represent both employers and employees in cases involving unfair dismissals, discrimination claims, and disputes arising from collective agreements.

Why Choose Us?

Our legal team is highly experienced in Cyprus Employment Law and Disputes, possessing in-depth knowledge of domestic and EU laws. We are committed to staying up-to-date with the latest developments in employment law to provide our clients with the most accurate and relevant advice.

We understand that each client’s situation is unique, and we take the time to listen to your concerns, assess your needs, and develop tailored legal strategies to achieve the best possible outcome.

Our legal team prides itself on maintaining open lines of communication with our clients. We ensure that you are kept informed of the progress of your case and are always available to answer any questions or address concerns.

We strive to exceed our clients’ expectations, providing expert legal guidance and representation with the utmost professionalism and dedication. Our commitment to client satisfaction has earned us a reputation for excellence in the field of Cyprus Employment Law and Disputes.

Contact Us Today

If you require expert legal assistance in matters related to Cyprus Employment Law and Disputes, do not hesitate to contact our law firm. Our experienced legal team is ready to provide you with the guidance and representation you need to protect your rights and interests. Schedule a consultation today and let us help you navigate the complexities of employment law in Cyprus.

Employment Law & Disputes in Cyprus

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