Hire in Cyprus

Typically, health assessments are allowed when necessary to ascertain whether a candidate possesses the physical capability to fulfill the specific duties outlined for the job position.

As for credit history inquiries, they are only permissible, even with the employee’s consent, if the role entails financial oversight or frequent handling of funds.

The probation period is typically limited to six months, with exceptions for certain positions like director roles. Within this probationary period, employers retain the right to terminate employees without specific cause.

In Cyprus, the standard working week consists of 40 hours. The total weekly working hours, including overtime, must not exceed 48 hours, with a maximum of eight hours of overtime per week. If the daily work period exceeds six continuous hours, employees are entitled to a minimum break of 15 minutes.

Additionally, employees should have a minimum of 11 consecutive hours of rest per day and 24 consecutive hours of rest per week. Moreover, every 14 days, they should enjoy either two rest periods of 24 consecutive hours each or one rest period of 48 consecutive hours.

Overtime pay is not legally mandated and is subject to negotiation between the employer and the employee. Nevertheless, certain industries may address overtime compensation within collective agreements.

Employers are required to maintain comprehensive payroll and payment records for their employees. These records should encompass employee particulars, offer letters, employment contracts, working hours, attendance logs, paid leave allocations, remuneration details, overtime earnings, expense reimbursements, proof of payment, as well as documents indicating contributions and deductions.

The Cyprus Tax Authority reserves the right to initiate inquiries within a six-year timeframe (or up to 12 years in cases of fraud or deliberate deception). It is advisable for employers to retain payroll and tax-related documents for this duration.

Employers must prioritize the prevention of workplace injuries, bearing the financial responsibility for this endeavor. This includes conducting assessments of occupational hazards and furnishing the workplace with necessary safety equipment. Moreover, all employees should receive adequate health and safety training throughout their employment tenure.

Bonus payments are left to the discretion of the employer and may be distributed based on individual or company performance, although this is not legally required.

However, the 13th and/or 14th salary must be provided under the following circumstances:

1) If there is a collective agreement in effect,
2) If stipulated in a personal contract or employment agreement upon hiring,
3) If it is an established practice within the company.

Once the 13th and/or 14th salary is disbursed, it becomes a customary practice for the company and is consequently expected to be paid out annually, even if not explicitly stated in a written agreement.

Termination without notice may occur under the following circumstances:

• – Commission of a criminal offense by the employee
• – Misconduct or improper behavior by the employee
• – Breach of employment rules or regulations

Severance compensation is not applicable if termination results from:

• – Inadequacy to perform the job duties due to lacking skills or temporary incapacitation
• – Redundancy caused by economic fluctuations
• – Conclusion of a fixed-term contract (either by its expiration date or upon completion of the task/project)
• – Force majeure events, acts of war, civil unrest, or natural disasters.

The following categories of employees are safeguarded from termination:

• – Pregnant women and new mothers (for up to five months after maternity leave ends)
• – Employees engaged in trade union-related activities
• – Employees on sick leave

When an employer decides to terminate an employee, written notice must be provided to the employee. The duration of the notice period is contingent upon the length of continuous employment:

– 26-51 weeks: 1 week
– 52-103 weeks: 2 weeks
– 104-155 weeks: 4 weeks
– 156-207 weeks: 5 weeks
– 208-259 weeks: 6 weeks
– 260-311 weeks: 7 weeks
– More than 312 weeks: 8 weeks

Payment of wages in lieu of notice is permitted.

During the notice period, the employee is entitled to paid time off during regular working hours to seek new employment. This paid time off should not exceed eight hours per week or 40 hours in total.

If an employee wishes to resign, they must also provide notice to the employer, the duration of which depends on the length of continuous employment:

– 26-51 weeks: 1 week
– 52-259 weeks: 2 weeks
– More than 260 weeks: 3 weeks

In cases of redundancy, the state Redundancy Fund provides payments based on the employee’s length of service and salary, as follows:

 Up to 4 years of service: 2 weeks’ wages for each continuous period of 52 weeks
 5-10 years of service: 2.5 weeks’ wages for each continuous period of 52 weeks
 11-15 years of service: 3 weeks’ wages for each continuous period of 52 weeks
 16-20 years of service: 3.5 weeks’ wages for each continuous period of 52 weeks
 More than 20 years of service: 4 weeks’ wages for each continuous period of 52 weeks (capped at 75.5 weeks of wages)

Severance pay for unlawful dismissal is the responsibility of the employer and follows the same calculation method as redundancy payments, with a cap at two years’ wages.

To calculate severance, employment of more than 26 weeks in a given year is considered as a full year of employment.

Restrictive covenants must adhere to reasonable geographical and temporal limitations and should not impede an employee from pursuing a lawful profession.

For a restrictive covenant to be legally enforceable:

• – The work involved should be of a sensitive nature, such as Research and Development (R&D).
• – Employers must provide monetary compensation during the non-compete period or when a restrictive covenant is active.

To safeguard confidential interests and information, employers should implement non-disclosure agreements. It is presumed that the employee’s obligation to act in good faith persists beyond termination.

There is no legal obligation for workers to be affiliated with a trade union. Nonetheless, certain industries, such as hotels, the transportation sector, and building & construction, often have trade union representation and negotiate collective agreements.

Employers typically issue monthly payslips, which can be provided in either electronic or hard copy format. Additionally, employers must furnish an annual certificate of emolument. This certificate should contain the employee’s details along with gross emoluments, income tax, social insurance, and healthcare contributions.

An employee who has completed 48 weeks of work within a year is entitled to four weeks of paid annual leave. The entitlement is as follows:

• – For employees on a 5-day work week: 20 working days
• – For employees on a 6-day work week: 24 working days

For employees who have worked less than 48 weeks, the annual leave is prorated accordingly. Temporary absences from work, such as sickness, maternity, and paternity leave, count towards the 48-week requirement.

Annual leave can be carried forward for up to two years with the mutual agreement of both employer and employee. Upon termination, the employer must compensate the employee for any unused annual leave.

During annual leave, an employee’s wages are either paid directly by the employer or from the Central Holiday Fund, to which employers are obliged to contribute.

Employers can apply for exemption from contributing to the Central Holiday Fund if they provide more annual leave than required by law. However, they must still pay wages to the employee during the leave period.

To be eligible for payments from the Central Holiday Fund, an employee must have worked for at least 13 weeks in the previous year and take annual leave for at least nine consecutive days. If the employee worked less than 48 weeks in the previous year, the annual leave taken must be for at least four consecutive days.

Social Insurance disburses sick leave benefits starting from the fourth day of absence due to illness, with no benefits issued for the initial three days. Employees are required to submit a claim to the Ministry of Labor, Welfare, and Social Insurances. It’s not mandatory for employers to cover the first three days of sick leave. The maximum duration for which sick leave benefits are payable within a single instance of interrupted employment is 156 days.

Carer’s Leave:

Employees have the right to take seven unpaid days off to care for a dependent.

Bereavement Leave:

Employees are entitled to up to five days of leave following the death of a child or spouse, three days for the loss of a parent or sibling, and one day for other family members’ passing.

Maternity Leave:

Maternity leave spans 18 consecutive weeks, with 11 weeks being mandatory. This includes two weeks before the expected delivery date, the week of delivery, and eight weeks post-delivery. Prior notice to the employer, along with a medical certificate indicating the expected delivery week, is required from the pregnant employee.

Maternity leave extends for multiple births, adding four additional weeks per child.

Paternity Leave:

Paternity leave lasts for two weeks and is available to employees whose spouse gave birth, had a child via surrogate, or adopted a child under 12 years old. This leave must be taken continuously within 16 weeks from the birth or adoption date. Employees need to inform the employer in writing at least two weeks in advance before taking paternity leave.

Surrogate Leave:

Female employees expecting a child through surrogacy are granted 18 weeks of leave. They must provide a medical certificate along with a relevant court order. This leave can start two weeks before the expected delivery week and is extended by four weeks per additional child (e.g., 22 weeks for twins).

Adoption Leave:

Female employees adopting a child under 12 years old are entitled to 12 weeks of maternity leave. Notice to the employer must be given at least six weeks before the adoption’s effective date.

Parental Leave:

Employed parents are eligible for up to 18 weeks of unpaid parental leave. For multiple births, the entitlement extends to 18 weeks per child, while single parents can take up to 23 weeks. A written notice specifying the leave’s start and end dates must be provided to the employer at least three weeks in advance.

Cyprus observes a total of 14 public holidays.