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Employment contracts and policies in Cyprus
Contract terms in Cyprus
Fixed-term contracts in Cyprus
Contract extensions in Cyprus
Working hours in Cyprus
Remote work in Cyprus
Tailored employment contracts in 100+ countries
Employment contracts in Cyprus
An employment contract is a key document that outlines the rights, responsibilities, and expectations between an employer and an employee. Putting a clear agreement in place helps ensure both parties understand their obligations and can reduce the risk of disputes or litigation.
Like all countries, Cyprus has its own legal framework that governs employment relationships. While written contracts are not always mandatory, employers in Cyprus are required to provide certain key terms in writing shortly after employment begins. Understanding what should be included in an employment contract—and what can optionally be added—is essential for compliance and good employment practice.
In this section, we’ll guide you through the essentials of employment contracts in Cyprus.
We’ll cover the core contract terms in Cyprus that employers must provide, as well as additional terms they may wish to include. You’ll also find information on probationary periods, fixed-term contracts, and rules surrounding remote work. Whether you’re hiring locally or expanding into Cyprus, this section will help you navigate employment contracts with confidence.
Employment contracts and policies in Cyprus
An employment contract is an important document that sets out the terms and conditions of an employment relationship clearly so both parties understand their rights and obligations. In Cyprus, employment contracts can be concluded on either an indefinite or fixed-term basis, though indefinite contracts are the norm. Read on for more information about employment contracts and policies in Cyprus.
Written employment contracts in Cyprus
Written employment contracts are not strictly mandatory in Cyprus. However, employers are required to provide employees with a written statement detailing the essential terms of their employment. We will cover the specific terms that must be included in these agreements in the next section.
Probationary periods in Cyprus
Probationary periods are permitted in Cyprus, but they are limited to six months in most circumstances. They may be extended up to two years for employees holding the position of advisor, chairman, director, or similar. For fixed-term contracts, the probationary period must be proportional to the duration of the contract (and no longer than six months). During the probationary period, either the employer or the employee can generally terminate the contract with limited notice.
Third-party approval for employment contracts in Cyprus
Unlike in some other countries, there is no specific requirement to lodge employment contracts with a third party in Cyprus. However, employers must register all new employees with the tax and social security authorities before they start work.
Mandatory employment policies in Cyprus
Employers in Cyprus are required to put in place certain employment policies under various labour laws. These include:
- Whistleblowing policies: Employers with 50 or more employees are required to establish internal whistleblowing channels to enable their employees to come forward with reports of wrongdoing in the workplace. These channels must ensure confidentiality and allow for both verbal and written reports.
- Health and safety policies: Employers are also required to implement health and safety policies under the Safety and Health at Work Law of 1996 (Law 89(I)/1996). Employers must conduct risk assessments, provide safe work equipment, offer appropriate training, and consult with employees on safety matters. For workplaces with five or more employees, maintaining written records of risk assessments is mandatory.
- Workplace harassment polices: In addition, employers in Cyprus must draw up a code of conduct to prevent sexual harassment in the workplace. Employers must inform employees of their rights and the procedures for lodging complaints, ensuring confidentiality throughout the process. Failure to establish such a code can render employers co-responsible for harassment incidents, potentially leading to legal consequences.
Contract terms in Cyprus
Employers in Cyprus must provide their employees with certain key terms and conditions in writing within seven days of their employment start date. Certain other information must be provided within one month.
This information can be delivered through various means, such as a formal employment contract, a letter of appointment, or any other document signed by the employer. The key requirement is that the information is provided in writing, either on paper or electronically.
Understanding the mandatory and optional contract terms in Cyprus is essential for both employers and employees to ensure compliance and clarity in the employment relationship.
Mandatory contract terms in Cyprus
Employment contracts in Cyprus must contain at least the following information:
- Identities of both employer and employee.
- Place of work and employer’s address.
- Job title or description.
- Start date and, if applicable, duration of employment.
- Probationary period terms.
- Remuneration details, including salary and payment frequency.
- Working hours and patterns.
- Paid leave entitlements.
- Notice periods for termination.
- Applicable collective agreements.
- Social security information.
These mandatory contract terms in Cyprus are designed to promote transparency and predictability in the employment relationship, aligning with the provisions of the Transparent and Predictable Working Conditions Law of 2023.
Additional contract terms in Cyprus
Employers in Cyprus can choose to include additional clauses in their employment contracts, even if they are not required by law. These may be subject to certain limitations based on Cypriot employment law. For example, as an employer in Cyprus, you could choose to incorporate the following in your agreements with employees:
- Confidentiality clauses: These clauses protect sensitive business information, such as trade secrets and client lists, by prohibiting employees from disclosing such information during and after employment. Courts in Cyprus uphold confidentiality clauses that are clear and reasonable in scope.
- Intellectual property (IP) clauses: These clarify the ownership of work-related inventions or creations developed during employment, ensuring that IP rights are appropriately assigned.
- Telework and remote work provisions: With the rise of remote work, including terms that govern teleworking arrangements can help manage expectations and responsibilities.
- Bonus and commission structures: Detailing performance-based bonuses or commissions helps manage expectations and can prevent disputes over compensation.
Incorporating these additional contract terms in Cyprus can provide clarity and legal safeguards for both parties. It’s advisable to tailor these clauses to the specific needs of the business and to seek legal advice to ensure their enforceability.
Fixed-term contracts in Cyprus
Permanent contracts are the standard form of employment in Cyprus. However, employers can engage workers on fixed-term contracts for seasonal work, work on temporary projects, or to cover for absent employees. Certain restrictions apply to the use of fixed-term contracts in Cyprus — we’ll discuss the details below.
Limitations on fixed-term contracts in Cyprus
Unlike in some other countries, there is no limit on the total number of employees an employer can engage on fixed-term contracts. However, employers must have a justifiable reason for concluding a fixed-term contract. These include:
- Meeting a temporary business need.
- Replacing an employee who is temporarily absent.
- Employment on a probationary basis.
- Employment to implement a court decision.
- Employment in the Armed Forces.
Permitted duration and number of fixed-term contracts in Cyprus
Fixed-term contracts in Cyprus can only be concluded for a maximum of 30 months (2.5 years). There is no specific limit on the number of successive fixed-term contracts that can be concluded with the same employee, but they must not add up to more than 30 months in total.
Contract extensions in Cyprus
In general, fixed-term contracts in Cyprus naturally terminate either when the specified end date is reached or on completion of a specific task or project. However, employers can choose to extend or renew a fixed-term contract if they still need the employee’s services. Read on to learn more about contract extensions in Cyprus.
Renewal or extension of fixed-term contracts in Cyprus.
An employer can choose to renew a fixed-term contract in Cyprus if they have an objective reason for doing so. For example, they may need to renew the contract if the person the employee is replacing has not yet returned to work, or if the specific project they are working on is taking longer than expected. Any renewal of a fixed-term contract in Cyprus must be communicated to the employee in writing.
However, the total length of all contracts must not exceed 30 months. If the employee continues working past this limit, their employment relationship may be considered permanent unless the employer can justify the fixed-term relationship on objective grounds.
Unlike in some other countries, there is no specific limit on the number of successive fixed-term contracts that can be concluded, as long as the total duration is less than 30 months. However, courts may consider employment to be permanent if several successive contracts are concluded without a justifiable reason.
Working hours in Cyprus
Standard working hours in Cyprus are 40 hours per week. This is usually worked over five days, but a six-day week is also possible. Read on to learn everything you need to know about working hours in Cyprus.
Maximum working hours in Cyprus
Employees in Cyprus must not work more than 48 hours per week, including overtime. This is calculated as an average over a period of four months. Employees may only work more than 48 hours in a week by prior mutual agreement. Also, while employers can ask employees to work more than 48 hours in a given week, the worker has the right to refuse without any detriment to their employment.
Overtime in Cyprus
Any hours worked in addition to the standard working hours in a week are considered overtime in Cyprus. This must generally be paid by the employer, with specific rates set by employment contracts or collective bargaining agreements. When employees exceed the maximum weekly working time of 48 hours, their employer must keep a record of the names of all workers working longer than 48 hours in the week and make this record available to the Ministry of Labour and Social Insurance.
Working hours in Cyprus for night workers
There are special rules for employees hired to work nights in Cyprus. Night work is any work performed between the hours of 11pm and 6am. Night work may not exceed an average of eight hours in any 24-hour period. This average is usually calculated over a period of one month, though collective agreements may specify a different reference period.
Breaks and rest periods in Cyprus
Employees in Cyprus who work more than six hours a day are entitled to a break of at least 15 minutes. They must be able to leave their workstation during their break, and it may not be granted at the beginning or end of the workday.
Employees are also entitled to a daily rest period of at least 11 hours in every 24-hour period, as well as a weekly rest period of at least 24 consecutive hours. In some circumstances, this can be replaced by a rest period of 48 consecutive hours for every period of 14 days.
Cyprus student visa working hours
International students who are in Cyprus on a student visa generally have the right to work alongside their studies. However, this is limited to a maximum of 20 hours per week. Student visa-holders are also only entitled to work in certain industries, such as manufacturing, health and social care, and food delivery.
Remote work in Cyprus
As in many countries in the world, remote work has become much more popular in Cyprus over the past few years. Read on to learn what you need to know as an employer.
Remote work legislation in Cyprus
The government of Cyprus implemented the Regulation of the Organisational Framework of Telework Law of 2023 in response to the rise in remote work. This law outlines the rights and responsibilities of both employers and employees in remote working arrangements.
In general, remote work in Cyprus is voluntary and must be agreed upon in writing between the employer and the employee. This agreement can be established at the time of hiring, through an amendment to the existing employment contract, or via a collective agreement. There are also clear guidelines for remote work during exceptional circumstances, such as public health crises like the COVID-19 pandemic.
Employer responsibilities related to remote work in Cyprus
Employers of remote workers in Cyprus are obligated to cover expenses incurred by working from home and to provide the necessary technical support to allow the employee to work. This involves providing employees with the equipment they need to do their jobs and handling any maintenance or repair costs.
Employers are also required to communicate the terms of the remote work agreement to employees within eight days of the start of the arrangement. The information they provide should include details about how working conditions differ for remote employees, including:
- The employee’s right to disconnect and measures to ensure this right.
- An analysis of telework-related costs and how they will be covered.
- Details of the equipment provided and technical support procedures.
- Any restrictions on equipment use and associated penalties.
- Agreements on telework readiness, including response times.
- Health and safety risks and the measures taken to address them.
- The supervisor responsible for the teleworking employee.
Rights granted to remote workers in Cyprus
The remote work legislation in Cyprus grants remote employees two specific rights:
- The right to disconnect: Employees have the right to disengage from work-related electronic communications outside of their standard working hours. Employers must not discriminate against employees for exercising this right.
- The right to equal treatment: Remote workers must receive the same rights and benefits as their on-site counterparts, including access to training, career development opportunities, and participation in collective activities.
Tailored employment contracts in 100+ countries
Like all countries, Cyprus has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Cyprus (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
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