{"id":133788,"date":"2026-04-07T13:44:16","date_gmt":"2026-04-07T13:44:16","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=133788"},"modified":"2026-04-07T13:44:16","modified_gmt":"2026-04-07T13:44:16","slug":"cyprus-employment-and-labour-law","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/cyprus-employment-and-labour-law\/","title":{"rendered":"Cyprus: Employment and Labour Law"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-133788","comparative_guide","type-comparative_guide","status-publish","hentry","guides-employment-and-labour-law","jurisdictions-cyprus"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Hadjianastassiou, Ioannides LLC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/03\/Asset-4@4x-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Hadjianastassiou, Ioannides LLC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/03\/Asset-4@4x-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Employment and Labour Law laws and regulations applicable in Cyprus<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, for a dismissal to be lawful in Cyprus it must be based on one of the following predefined grounds for fair dismissal:<\/p>\n<ul>\n<li>The employee has become redundant.<\/li>\n<li>The termination is due to force majeure (war, political uprising, act of God, or destruction of the premises by fire not caused by the wilful act or negligence of the employer).<\/li>\n<li>The employment is terminated at the end of a fixed-term contract or because of the attainment by the employee of the normal retirement age by virtue of custom, law, collective agreement, work rules, or otherwise.<\/li>\n<li>The employee&#8217;s failure to perform in a reasonably satisfactory manner (assessed on an objective basis).<\/li>\n<li>The employee behaves in a way that legitimises the employer to terminate the employment without notice, including the following non-exhaustive examples:<\/li>\n<li>Gross misconduct by the employee;<\/li>\n<li>Commission by the employee of a criminal offence, in the context of employment, without the agreement, express or implied, of the employer;<\/li>\n<li>Behaviour by the employee that makes clear that the employer\u2013employee relationship cannot be reasonably expected to continue;<\/li>\n<li>Improper behaviour by the employee in the course of employment; and<\/li>\n<li>Serious or repeated contravention or disregard by the employee of work or other rules in relation to employment.<\/li>\n<\/ul>\n<p>The sole exception to this requirement arises where the employee is serving a probationary period, in which case termination without cause is permitted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned?  How many employees need to be affected for the additional considerations to apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><span style=\"font-size: 1rem\">Where an employer intends to terminate the contracts of multiple employees within a 30-day period, the collective redundancies legislation may apply, subject to the thresholds set out below. If those thresholds are met, an additional consultation procedure must be followed and further information obligations arise.<\/span><\/p>\n<p>The thresholds take into consideration the average number of employees under employment and the number of employees dismissed over a period of 30 days (see the table below).<\/p>\n<table width=\"100%\">\n<thead>\n<tr>\n<td width=\"50%\"><strong>Average number of employees<\/strong><\/td>\n<td width=\"50%\"><strong>Minimum number of employees dismissed over the 30-day period<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"50%\">21 \u2013 99<\/td>\n<td width=\"50%\">10<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">100 \u2013 299<\/td>\n<td width=\"50%\">10% of the workforce<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">300+<\/td>\n<td width=\"50%\">30<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If the dismissals fall within the protective ambit of the legislation, the employer must consult employee representatives with a view to reaching agreement on possible alternatives to avoid or reduce the number of dismissals, or on ways to mitigate their consequences. The employer must also provide written information on the intended redundancies to the employee representatives and the Ministry of Labour and Social Insurance, and must ensure that no termination takes effect earlier than 30 days after such notification.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if a worker\u2019s employment is terminated in the context of a business sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the business sale falls within the protective scope of the transfer of undertakings legislation, both the transferor and the transferee undertakings must exercise caution when proceeding with any dismissals. The transfer itself does not constitute a valid reason for dismissal, unless dismissal is for an economic, technical, or organisational reason.<\/p>\n<p>A dismissal connected to the transfer \u2014 whether effected by the transferor prior to the transfer or by the transferee following it \u2014 will ordinarily be treated as automatically unlawful, unless the dismissal is for a genuine economic, technical, or organisational reason. In such cases the employee may bring a claim for damages for unfair dismissal.<\/p>\n<p>Both the transferor and the transferee undertakings are under notification and consultation obligations with respect to affected employees, breach of which is an offence punishable with a fine.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees need to have a minimum period of service in order to benefit from termination rights?  If so, what is the length of the service requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>During a probationary period, an employer is not required to give a reason for termination or to serve a notice of termination. The probationary period is limited to six months. For fixed-term employment relationships, the length of any probationary period must be proportionate to the expected duration of the contract and the nature of the work. Where the contract is renewed for the same function and tasks, the employment relationship shall not be subject to a new probationary period.<\/p>\n<p>The six-month limitation does not apply to directors and senior officers of corporate entities, and may be extended to up to two years, if such extended period of probation is expressly provided for and agreed in writing at the commencement of the employment relationship.<\/p>\n<p>The above provisions relate only to the statutory right of unfair dismissal and do not cover cases of wrongful dismissal or any rights not to be terminated on the basis of non-discrimination legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, is the minimum notice period to terminate employment?  Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employer intending to terminate the employment of an employee who has at least 26 weeks&#8217; seniority with that employer is obliged to give the employee a minimum period of notice in writing, depending on the length of service, as follows:<\/p>\n<table width=\"100%\">\n<thead>\n<tr>\n<td width=\"50%\"><strong>Length of Service<\/strong><\/td>\n<td width=\"50%\"><strong>Notice by the employer<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"50%\">26 to 51 weeks<\/td>\n<td width=\"50%\">1 week<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">52 to 103 weeks<\/td>\n<td width=\"50%\">2 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">104 to 155 weeks<\/td>\n<td width=\"50%\">4 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">156 to 207 weeks<\/td>\n<td width=\"50%\">5 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">208 to 259 weeks<\/td>\n<td width=\"50%\">6 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">260 to 311 weeks<\/td>\n<td width=\"50%\">7 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">312 or more weeks<\/td>\n<td width=\"50%\">8 weeks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>There is no obligation to provide a notice period to any employee who is on probation, or to an employee who behaves in a way that legitimises the employer to terminate the employment without notice.<\/p>\n<p>The parties may agree to a longer notice period, but any contractual provision purporting to reduce the statutory minimum notice is void.<\/p>\n<p>Senior employees may negotiate longer contractual notice periods. Collective agreements may also provide for such longer periods, as a means of securing greater employment stability.<\/p>\n<p>An employee intending to terminate the employment relationship, who has at least 26 weeks&#8217; seniority with that employer, is obliged to give the employer a minimum period of notice, depending on the length of service, as follows:<\/p>\n<table width=\"100%\">\n<thead>\n<tr>\n<td width=\"50%\"><strong>Length of Service<\/strong><\/td>\n<td width=\"50%\"><strong>Notice by the employee<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"50%\">26 to 51 weeks<\/td>\n<td width=\"50%\">1 week<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">52 to 259 weeks<\/td>\n<td width=\"50%\">2 weeks<\/td>\n<\/tr>\n<tr>\n<td width=\"50%\">260 or more weeks<\/td>\n<td width=\"50%\">3 weeks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The parties may agree to a longer notice period.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to make a payment to a worker to end the employment relationship instead of giving notice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the right to make a payment in lieu of notice is provided by the relevant law even if not expressly provided for in the employment contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during their notice period but require them to stay at home and not participate in any work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Garden leave is not expressly provided for or regulated under Cyprus law.<\/p>\n<p>It is common practice to include garden leave provisions in employment contracts for senior or key employees, particularly where the protection of confidential information or client relationships is a concern.<\/p>\n<p>Such clauses can be challenged as being in breach of the implied right of an employee to receive work.<\/p>\n<p>The enforceability and scope of such clauses has yet to be determined in a decisive manner by the Supreme Court of Cyprus.<\/p>\n<p>In the absence of an express garden leave clause, an employer will not be able to unilaterally place an employee on garden leave.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures. Is an employee entitled to appeal against their termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no specific statutory procedure prescribed to effect a termination of the employment relationship. However, certain actions need to be taken.<\/p>\n<p>A termination notice must be given in writing and must clearly state the last date of employment, unless the termination is for a reason that does not require a termination notice.<\/p>\n<p>An additional procedural step that has legislative backing is the right to be heard where termination is attributed to the employee.<\/p>\n<p>Although not expressly provided for in the relevant termination legislation, the courts in Cyprus have on many occasions emphasised the importance of following a structured procedure, appropriate to the reason for termination, before dismissing an employee. For example, before dismissing an employee for poor performance, an employer is expected to (i) inform the employee that their performance is unsatisfactory, with specific examples; (ii) set clear expectations and standards of performance; and (iii) allow a reasonable period for the employee to improve.<\/p>\n<p>Certain other procedural steps may be necessary in more specialised circumstances \u2014 for example, if the termination is by reason of redundancy. In such a case, the employer must notify the Ministry of Labour and Social Insurance of the impending redundancy at least one month prior to the termination date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the employer does not follow any prescribed procedure as described in response to question 8, what are the consequences for the employer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Failure to provide a valid termination notice would enable the employee to bring a claim in order to recover the amount equivalent to the notice.<\/p>\n<p>If an employee brings a claim for unfair dismissal in respect of a termination for which, among other things, no proper procedure was followed, the courts will take such procedural failure into account when assessing the legality of the termination and may find it to be unlawful. In that event, the employee will be awarded statutory compensation. The court may also award increased damages, as the manner in which the termination was carried out is one of the factors the courts are required to consider when exercising their discretion to award such damages.<\/p>\n<p>Additionally, where specific information, consultation, or notification obligations are imposed on the employer, failure to comply may constitute a criminal offence punishable by a fine. The relevant enforcement authority and the range of applicable sanctions vary depending on the legislative instrument under which the obligation arises.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How, if at all, are collective agreements relevant to the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Collective agreements will commonly provide additional requirements (such as consultation and notification obligations) before a termination of an employee takes place, especially with respect to redundancies or significant reductions in the workforce. They can also provide increased periods of termination notice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Normally, no permission or information obligation to any third party (except an information obligation to employee representatives) is owed for the termination of the employment of an employee.<\/p>\n<p>If the termination is due to redundancy or collective redundancies, transfer of business, merger, or other similar arrangements, it will be necessary to provide termination information and\/or consultation with appropriate parties and authorities. For the specific notification and consultation requirements applicable in collective redundancy and transfer of business situations, see the responses to questions 2 and 3 above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no single piece of legislation covering the protection of employees from discrimination based on protected characteristics, but there are several specific laws that individually cover different protected characteristics.<\/p>\n<p>We set out below a non-exhaustive list of the protection afforded by different laws:<\/p>\n<ul>\n<li>No direct or indirect discrimination based on gender (pregnancy and maternity are considered as sex discrimination factors) for equal pay for equal work.<\/li>\n<li>No direct or indirect discrimination based on gender (pregnancy, giving birth, lactation, maternity, or any disease arising from pregnancy or giving birth) and protection against harassment and sexual harassment, and an obligation for positive actions to promote the equality of genders in respect of employment, vocational training and orientation, or access to employment or vocational training and orientation.<\/li>\n<li>No direct or indirect discrimination, harassment, or direction for the imposition of discriminatory treatment because of religion or religious beliefs, age, sexual orientation, race, or national origin.<\/li>\n<li>No direct or indirect discrimination for people with disabilities and an obligation to make reasonable adjustments.<\/li>\n<li>No discrimination for employees working on a part-time basis and an obligation to consider requests to become full-time employees.<\/li>\n<li>No discrimination for employees working on a fixed-term basis and an obligation to consider employees for contracts of indefinite period.<\/li>\n<li>No direct or indirect discrimination because of the participation or non-participation of a person in trade unions.<\/li>\n<li>No less favourable treatment of employees on the ground that they have applied for, or have taken, paternity leave, parental leave, carers leave, force majeure leave, or flexible working arrangements.<\/li>\n<li>No adverse discrimination against an employee who does not consent to remote work; and remote workers are entitled to the same rights and have the same obligations as comparable employees working at the employer&#8217;s premises.<\/li>\n<\/ul>\n<p>The majority of the above-mentioned laws also provide protection against retaliation for victims of discrimination and\/or harassment. Employers should confirm the specific anti-retaliation provisions of each applicable instrument, as the scope of protection may vary between legislative regimes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Possible consequences include orders for fair compensation, criminal liability, and fines; and in certain circumstances where the employer is a company, its officers may also be held personally liable. In certain circumstances, the Court may also order the reinstatement of the dismissed employee.<\/p>\n<p>Compensation awards are not subject to a fixed statutory cap, and the court retains broad discretion in determining quantum. Discrimination and harassment claims arising in an employment context are ordinarily heard by the Industrial Disputes Court, although the applicable jurisdictional rules may vary depending on the legislative basis of the claim. Reinstatement may be ordered at the Court&#8217;s discretion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With respect to fixed-term contracts, where an employee works for the same employer for a period (whether continuous or not) of more than 30 months, the contract will automatically become indefinite, unless the employer can demonstrate objective reasons necessitating a fixed duration, including:<\/p>\n<ul>\n<li>The company needs for the execution of a project are temporary;<\/li>\n<li>The employee is replacing another employee;<\/li>\n<li>The specifics of the work undertaken, the nature of duties, and the character of employment justify fixed-term employment;<\/li>\n<li>The employee is on probation;<\/li>\n<li>The fixed-term employment is in compliance with a judicial decision; and<\/li>\n<li>The physical and mental conditions of the employee are linked with the performance of the duties.<\/li>\n<\/ul>\n<p>Additionally, there are laws protecting both fixed-term employees and part-time employees from discrimination, and there is a positive obligation on employers to inform and consider such employees for indefinite contracts and full-time work respectively.<\/p>\n<p>With respect to employees on family leave \u2014 and more specifically paternity leave, parental leave, carer&#8217;s leave, force majeure leave, and requests for flexible working arrangements \u2014 an employer is prohibited from terminating the employment, serving a termination notice, or taking preparatory actions in anticipation of a dismissal. This prohibition applies from the date on which the employee submits a written request to exercise any of those rights until the date on which the relevant right lapses.<\/p>\n<p>There is also a prohibition on the termination of employment of mothers (whether natural, adopting, or surrogates) for a period ending five months following the lapse of the relevant maternity leave.<\/p>\n<p>The only exceptions to the abovementioned prohibitions on termination of employment are where the employee is guilty of a serious offence or behaves in a manner which justifies the termination of employment, the relevant undertaking employing the employee ceases its operations, or the fixed-term contract has lapsed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, such employees are protected against retaliation including termination of employment, and a compensation order can be issued by the Court together with an order for reinstatement if the employee so wishes.<\/p>\n<p>Whistleblower protection in Cyprus is provided pursuant to legislation transposing the EU Whistleblowing Directive (Directive (EU) 2019\/1937).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the event of financial difficulties, can an employer lawfully terminate an employee\u2019s contract of employment and offer re-engagement on new less favourable terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Cyprus law, termination of employment due to financial difficulties can only be considered lawful if it falls within the legal framework of redundancy.<\/p>\n<p>Under the relevant termination legislation, an employer who has terminated a contract of employment by reason of redundancy is obliged, within eight months of the redundancy, to give recruitment priority to the affected employees if the employer decides to increase the workforce in the same type or speciality of work. The employer must offer such work to the affected employee. No legislative restriction is expressly imposed on the terms of re-engagement; however, an employer offering substantially less favourable terms may face scrutiny as to whether a genuine redundancy situation existed in the first place.<\/p>\n<p>Given that establishing a lawful redundancy requires a sustained and material decrease in the volume of work over a prolonged period, immediate re-engagement on less favourable terms would undermine the legal justification for the original dismissal and is unlikely to be defensible. Employers should bear this in mind before proceeding with redundancy terminations where re-engagement on revised terms is contemplated.<\/p>\n<p>In any case, before proceeding with redundancy terminations, the employer must firstly consider less invasive ways to address the situation, including suggesting a variation of the terms of employment on less favourable terms (whether for a fixed period or indefinitely), before terminating the employment of one or more employees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, risks are associated with the use of artificial intelligence in an employer\u2019s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer\u2019s use of AI or automated decision-making in the termination process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p class=\"Paragraph\"><b><span lang=\"EN-US\">General Risks<\/span><\/b><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">The use of AI tools in recruitment and termination decisions gives rise to a range of legal and operational risks. These include the potential for algorithmic bias, where AI systems may embed the biases of their developers or of the historical data on which they are trained, resulting in discriminatory outcomes based on protected characteristics. In the Cypriot context, employers frequently rely on AI tools developed in other jurisdictions that are not calibrated to local customs, workplace culture, or legal requirements. Data protection considerations are also engaged, as AI systems used in employment decision-making process personal data (and potentially special category data), thereby triggering obligations under the GDPR, including compliance with data protection principles and applicable transparency requirements under Cyprus law.<\/span><\/p>\n<p class=\"Paragraph\"><b><span lang=\"EN-US\">Regulatory Framework<\/span><\/b><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">The Artificial Intelligence Act, Regulation (EU) 2024\/1689 (the &#8220;AI Act&#8221;), establishes a risk-based framework governing the development and deployment of AI systems within the EU. The AI Act classifies as high-risk those AI systems that can materially affect individuals&#8217; access to employment, working conditions, or livelihoods. This includes systems used for recruitment, selection, promotion, remuneration, termination, task allocation, and performance monitoring. The concept of &#8220;work-related contractual relationship&#8221; is deliberately broad and extends to non-standard arrangements, including platform workers and self-employed consultants.<\/span><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">Employers using such systems are classified as &#8220;deployers&#8221; under the AI Act and are subject to obligations including human oversight, data governance, monitoring and incident response, log retention, regulatory cooperation, and transparency towards affected individuals. The AI Act also prohibits certain AI practices relevant to employment, including the use of subliminal manipulation techniques, exploitation of vulnerabilities, social scoring leading to discriminatory treatment, and the scraping of facial images to create biometric databases. An appropriate level of AI literacy among staff involved in the use or supervision of AI systems is also required.<\/span><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">The AI Act&#8217;s prohibitions and AI literacy requirements are already in force, and the high-risk regime will apply from August 2026. In parallel, the Platform Work Directive (EU) 2024\/2831, which specifically addresses algorithmic management in digital labour platforms, must be transposed by member states by 2 December 2026. Together, these instruments form a complementary regulatory regime governing the use of AI in the management of work. Employers should review their current use of AI systems to identify any tools that may fall within the prohibitions or be classified as high-risk, and confirm their obligations under both instruments.<\/span><\/p>\n<p class=\"Paragraph\"><i><span lang=\"EN-US\">Litigation<\/span><\/i><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">We are not aware of any court or tribunal claim brought by an employee in Cyprus arising from the use of AI or automated decision-making in the termination process. However, given the increasing integration of AI tools in employment decisions and the regulatory developments described above, claims in this area are foreseeable in the near to medium term.<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Depending on the reason for dismissal, an employer will be obliged to serve at least the minimum statutory notice to an employee before dismissing that employee, unless a longer period has been agreed in the contract of employment. The employee can either continue working until the lapse of the notice period, or the employer may decide to make a payment in lieu of notice.<\/p>\n<p>The employer must also pay any other salary entitlement of the employee, including accrued salary up to the date of termination, outstanding holiday entitlement, pro rata thirteenth-month salary (a customary payment in Cyprus, commonly provided for by collective agreement or individual contract, where payable), and any other contractual entitlements payable on termination (e.g. bonus).<\/p>\n<p>Other than the above amounts, an employer dismissing an employee on a lawful ground of dismissal will have no further payment and\/or compensation obligations.<\/p>\n<p>However, it is not uncommon for employers who wish to dismiss employees \u2014 and where the legality of the dismissal is uncertain or contested \u2014 to offer compensation relative to the sums the employee would be entitled to receive as minimum compensation in a claim for unfair dismissal before the Industrial Disputes Court. The minimum compensation is calculated by reference to the employee&#8217;s years of service, expressed as weeks of gross salary, as set out in the table below.<\/p>\n<table width=\"100%\">\n<thead>\n<tr>\n<td width=\"25%\"><strong>Years of Employment<\/strong><\/td>\n<td width=\"25%\"><strong>Weekly salary<\/strong><\/td>\n<td width=\"25%\"><strong>Years of Employment<\/strong><\/td>\n<td width=\"25%\"><strong>Weekly salary<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"25%\">1<\/td>\n<td width=\"25%\">2<\/td>\n<td width=\"25%\">14<\/td>\n<td width=\"25%\">35<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">2<\/td>\n<td width=\"25%\">4<\/td>\n<td width=\"25%\">15<\/td>\n<td width=\"25%\">38<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">3<\/td>\n<td width=\"25%\">6<\/td>\n<td width=\"25%\">16<\/td>\n<td width=\"25%\">41.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">4<\/td>\n<td width=\"25%\">8<\/td>\n<td width=\"25%\">17<\/td>\n<td width=\"25%\">45<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">5<\/td>\n<td width=\"25%\">10.5<\/td>\n<td width=\"25%\">18<\/td>\n<td width=\"25%\">48.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">6<\/td>\n<td width=\"25%\">13<\/td>\n<td width=\"25%\">19<\/td>\n<td width=\"25%\">52<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">7<\/td>\n<td width=\"25%\">15.5<\/td>\n<td width=\"25%\">20<\/td>\n<td width=\"25%\">55.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">8<\/td>\n<td width=\"25%\">18<\/td>\n<td width=\"25%\">21<\/td>\n<td width=\"25%\">59.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">9<\/td>\n<td width=\"25%\">20.5<\/td>\n<td width=\"25%\">22<\/td>\n<td width=\"25%\">63.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">10<\/td>\n<td width=\"25%\">23<\/td>\n<td width=\"25%\">23<\/td>\n<td width=\"25%\">67.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">11<\/td>\n<td width=\"25%\">26<\/td>\n<td width=\"25%\">24<\/td>\n<td width=\"25%\">71.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">12<\/td>\n<td width=\"25%\">29<\/td>\n<td width=\"25%\">25+<\/td>\n<td width=\"25%\">75.5<\/td>\n<\/tr>\n<tr>\n<td width=\"25%\">13<\/td>\n<td width=\"25%\">32<\/td>\n<td width=\"25%\"><\/td>\n<td width=\"25%\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The figures in the table above represent weeks of gross salary.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented?  Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p class=\"Paragraph\"><span lang=\"EN-US\">Yes, parties can enter into settlement and\/or termination agreements to settle any employment-related claims they might have against each other. There are no specific statutory requirements; however, case law requires that the wording of the agreement makes clear that the payment is made in consideration of the employee&#8217;s undertaking not to bring an action against the employer, and that the amount is accepted in full and final settlement of all claims relating to the employment and its termination.<\/span><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">There is no requirement under Cyprus law for the employee to obtain independent legal advice before entering into a settlement or termination agreement, in contrast to the position in certain other jurisdictions. The parties are free to include non-disclosure and confidentiality clauses; however, the validity of such clauses may be limited by the anti-retaliation provisions of applicable whistleblowing and discrimination legislation. Legal advice should be sought to ensure that any such clauses are appropriately drafted.<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is not unusual for employment contracts to contain post-termination covenants. It is doubtful whether such restraint of trade clauses are enforceable under Cyprus law.<\/p>\n<p>Firstly, such clauses may be in breach of the constitutional right to enter freely into any contract. It is generally perceived that an employer has a significant bargaining power over an employee, and clauses restraining an employee from entering into other contracts may therefore be considered to be contrary to the relevant constitutional provision.<\/p>\n<p>Secondly, in accordance with Cypriot Contracts Law, post-termination clauses in contracts are considered, in most cases, to amount to a restraint of trade and are therefore void and unenforceable, unless they fall under specific exceptions set out in the law (i.e. partnership and quasi-partnership relationships).<\/p>\n<p>Importantly, where a Cypriot court is called upon to examine restrictive covenants, it may seek guidance from analogous common law treatment of the issue. If this is the approach adopted, the Court would likely examine whether the clause as drafted (in terms of duration, geographic scope, and type of restriction) falls within the applicable legitimate interest and reasonableness tests.<\/p>\n<p>To date, the Supreme Court of Cyprus has not examined in any useful detail the ambit of such clauses, and it would therefore be difficult to predict with certainty how the Cypriot courts would approach such an issue.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from soliciting customers or clients, or employees of the employer, after the termination of employment? If yes, describe any relevant requirements or limitations (including any payments that must be made to the worker for the restriction to be valid and enforceable).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The general legal framework applicable to post-termination restrictions on competition also applies to restrictions on the solicitation of customers, clients, and employees. The analysis set out in response to Question 20 above applies equally here, and the following additional considerations are relevant specifically to solicitation restrictions.<\/p>\n<p>As noted in response to Question 20, post-termination restrictions on solicitation face the same constitutional and statutory challenges under the Contracts Law as restrictions on competition, and their enforceability is similarly uncertain pending authoritative Supreme Court guidance.<\/p>\n<p>A potentially significant differentiating factor in cases involving solicitation of clients, customers, or employees is whether such contact would amount to a breach of the departing employee&#8217;s post-termination confidentiality obligations. Where it would, this may provide a stronger legal basis for an injunctive remedy than a restraint of trade clause alone.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As the law currently stands, trade secrets can remain confidential even after the termination of employment. The trade secret definition is not, however, very broad and does not include all confidential information that may have been subject to protection during the employment period.<\/p>\n<p>It is not uncommon for employers that wish to ensure further protection of confidential information (whether or not it amounts to a trade secret) to offer a departing employee a non-disclosure agreement in exchange for additional consideration, creating a contractual obligation in addition to any standard implied duty arising from the employment relationship.<\/p>\n<p>Employers should also be aware that breach of post-termination confidentiality obligations may give rise to a claim for injunctive relief in addition to, or instead of, a damages claim, which is frequently the more effective remedy in practice given the need to prevent ongoing or imminent disclosure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are employers obliged to provide references to new employers if these are requested?  If so, what information must the reference include? What duties apply to employers giving references?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employee may request a former employer to issue a certificate setting out the period during which the employee was working for that employer and the type or types of work performed. The employer cannot include any derogatory comments in such a certificate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The absence of a legislatively prescribed procedural framework for dismissals is a significant practical challenge for employers in Cyprus. The courts have increasingly emphasised the importance of following a fair and structured procedure in unfair dismissal cases, yet no statutory framework currently exists to provide employers with clear guidance. The introduction of such a framework, accompanied by approved guidelines developed in consultation with employer and employee representatives, would better equip employers and help minimise avoidable terminations.<\/p>\n<p>In the interim, employers are strongly advised to consult with professional advisors to create fair and flexible internal procedures tailored to the different types of termination that may arise. Any decision to dismiss should be properly documented, fully justified, and supported by contemporaneous evidence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p class=\"Paragraph\"><span lang=\"EN-US\">There have been discussions regarding the modernisation of the current legislative framework regulating the termination of employment, which has been in place since 1967. To date, no formulated policy on such reform has been published.<\/span><\/p>\n<p class=\"Paragraph\"><span lang=\"EN-US\">Separately, employers should be aware of forthcoming EU-level developments with direct implications for employment law practice in Cyprus. The AI Act&#8217;s high-risk regime will apply from August 2026, and the Platform Work Directive (EU) 2024\/2831 must be transposed by Member States by 2 December 2026. Both instruments will affect how employers may use AI and algorithmic tools in the management and termination of employment, including in the context of digital labour platforms. For further detail, see the response to question 17 above.<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5525<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/133788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=133788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}