Employment Law in Cyprus: Legal Framework and Protections

Introduction

Employment law in Cyprus establishes the legal framework governing the relationship between employers and employees. Its primary objective is to ensure fair and safe working conditions, promote equality, and regulate key aspects of employment such as working hours, remuneration, employee rights, and mutual obligations.

The Cypriot legal system incorporates a combination of national legislation and European Union directives, offering comprehensive protection while promoting legal certainty in the labour market. For more details on EU labour rules, visit the European Commission’s Employment and Social Rights page.

Key Sources of Employment Law

The principal sources of employment law in Cyprus include, inter alia:

• The Termination of Employment Law (Law 24/1967).

• The Annual Paid Leave Law (Law 8/1967).

• The Minimum Wage Law (Chap. 183).

These laws define the minimum standards applicable to employment relationships and safeguard the fundamental rights of both employees and employers.

Employee Protections

Cypriot employment law provides robust legal protections for employees, including but not limited to:

• Regulation of working hours, overtime, and rest periods.

• Establishment of a statutory minimum wage.

• Entitlement to annual paid leave, maternity, paternity, and sick leave.

• The right to work in a safe and healthy environment, as also reinforced by the Ministry of Labour of Cyprus.

The Termination of Employment Law protects employees against unfair or unlawful dismissal, granting entitlement to compensation depending on the years of employment and the grounds for termination. In most cases, a statutory notice period is required prior to dismissal, unless serious misconduct or a disciplinary breach justifies immediate termination.

Employer Rights

While the law ensures strong protection for employees, it also recognizes the rights and legitimate interests of employers. The framework allows employers to:

• Define the terms and conditions of employment through written agreements.

• Manage and structure their workforce in compliance with the law.

• Terminate employment, in serious cases of misconduct or breach of contract.

Conclusion - Employment Law in Cyprus

Employment law in Cyprus is designed to maintain a balanced and transparent employment relationship, ensuring that the rights and obligations of both parties are clearly defined and enforceable. Seeking timely legal advice is essential for both employers and employees to ensure compliance and prevent disputes.

Proper guidance helps employers implement fair policies while protecting business interests, and enables employees to understand and assert their rights effectively.

At George Liasides LLC, we provide tailored support on all aspects of employment law in Cyprus. From drafting and reviewing contracts to resolving workplace disputes, our Employment Law Practice ensures that clients are protected at every stage of the employment relationship.

For related insights, see our guide on the Cyprus Startup Visa