Cyprus Employment Law Compliance

On 20 December 2024, the Minister of Labour and Social Insurance issued Decree Κ.Δ.Π. 455/2024, pursuant to section 11(6) of the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023). This Decree mandates that all employers in the Republic of Cyprus must submit the essential terms of employment for all their employees through the “ERGANI” information system between 2 January 2025 and 28 February 2025.

The Transparent and Predictable Working Conditions Law of 2023 transposes the EU Directive 2019/1152 into Cypriot legislation, aiming to enhance working conditions by promoting more transparent and predictable employment terms. This legislation repealed the previous law, “The Provision of Information to the Employee by the Employer on the Conditions Applicable to the Contract or Employment Relationship Law of 2000” (Law 10(I)/2000).

The essential terms of employment that employers are required to submit, as outlined in the Decree, include:

  1. Employer’s Details: This encompasses the employer’s identity and registered office address.
  2. Type of Business: Specifically for retail businesses, the nature or category of the enterprise must be specified.
  3. Employee Details: Information such as the employee’s identity, job description, and specialisation.
  4. Place of Work: Both the place of business as specified in the employment contract and the actual workplace at the time of submission.
  5. Employment Dates: The commencement date of employment and, if applicable, the end date for fixed-term contracts.
  6. Probationary Period: Conditions and duration of any probationary period.
  7. Annual Leave: Duration of annual leave and the method of allocation.
  8. Remuneration: Details of salary or wages, including frequency of payment (daily, weekly, monthly, or hourly).
  9. Working Hours: Standard working hours per day or week. If the employee’s working schedule is unpredictable, this should be noted.
  10. Additional Benefits: Other benefits, allowances, commissions, cost-of-living allowances, etc.

Employers are obligated to provide this information in writing, either on paper or electronically, ensuring that it is accessible, storable, and printable by the employee. Proof of delivery and receipt must be maintained by the employer.

The Decree specifies that the submission of these essential terms must occur between 2 January 2025 and 28 February 2025. Non-compliance with the provisions of the Law and the Decree may result in penalties, including fines up to €5,500.

Employers are advised to review their employment contracts and internal policies to ensure compliance with the new requirements. This includes updating template contracts, monitoring probationary periods, reviewing workplace training requirements, and ensuring that employees are provided with the necessary information within the specified timeframes.

In summary, the implementation of Decree Κ.Δ.Π. 455/2024 underlines the commitment of Cypriot authorities to align with European standards, enhancing transparency and predictability in employment relationships. Employers must take proactive steps to comply with these obligations to foster a fair and transparent working environment.

At Chambers & Co, we provide comprehensive legal support to businesses and employers navigating the complexities of employment law in Cyprus. From ensuring compliance with the latest labour regulations, such as the recent Decree Κ.Δ.Π. 455/2024, to drafting and reviewing employment contracts, advising on workplace policies, handling dispute resolution, and representing clients in employment tribunals, our expert legal team is here to protect your business. With years of experience in labour law, we help companies of all sizes meet their legal obligations while fostering a transparent and compliant work environment. Contact us today to ensure your business remains fully compliant with Cyprus employment laws and avoids costly penalties.