Employment and labour law in Cyprus

Cyprus Employment Law is a combination of common laws and statutes that govern the relationship between an employer and employee. Since employment is regarded as a contract, the standard principles of contract law underlie all employment agreements in Cyprus.

As such, it is understood that both parties freely and willingly agreed to the terms and conditions of the contract. Several statutory regulations and obligations, such as the Termination of Employment Law of 1967 and collective agreements, complement the common law to protect employee rights.

Employee rights safeguarded by the Statute

In addition to honouring contract law, employers must uphold all employees' constitutional rights, including the right to work, strike, and be treated equally in the workplace.

Furthermore, several statutes related to employment exist in Cyprus to safeguard workers' rights. The most important is the Termination of Employment Law of 1967. Others include:

• The Social Security Insurance Law of 2010,
• The Annual Paid Leave Law of 1967,
• The Protection of Maternity Law of 1997,
• The Health and Safety at Work Law of 1996,
• The Collective Redundancies Law of 2001,
• The Equal Treatment at Work and Employment Law of 2004, and
• The Minimum Salaries Law.

Employers must also inform employees of conditions related to the employment relationship or any changes to those conditions.

Employment contracts

In Cyprus, contracts are binding whether they are written agreements or not. However, employers must provide details of the terms of employment within a month of the commencement date. It needn't be a formal employment contract either. Any document, contract, or letter of appointment that outlines the terms of employment and is signed by the employer will do.

It's important to note that statutory and common law rights and obligations apply to all employment contracts. This is irrespective of whether they are mentioned in the agreement. Some employee rights include the following:

• A working week, including or excluding overtime, cannot exceed 48 hours.
• Parents are entitled to maternity and parental leave.
• A minimum of 22 weeks of maternity leave should be available.
• All employees have the right to be paid equally for equal work done.
• The minimum wage is guaranteed for employees in specific industries.

Termination of Employment Law in Cyprus

The most important employment law statute in Cyprus is the Termination of Employment Law. It regulates the termination of employment and protects employees against dismissal. This law applies to all employees, regardless of whether they work in the private or public sector.

According to the Termination of Employment Law of 1967, employers are required to provide adequate notice of termination. However, the notice period varies depending on the length of service:

• 26 to 52 weeks of service require a notice period of one week,
• 52 to 104 weeks of service require a notice period of two weeks,
• 104 to 156 weeks of service require a notice period of four weeks,
• 156 to 208 weeks of service require a notice period of five weeks,
• 208 to 260 weeks of service require a notice period of six weeks,
• 260 to 311 weeks of service require a notice period of seven weeks, and
• 312+ weeks of service require a notice period of eight weeks

Employers are obligated to provide a reason for dismissal. If they cannot provide a reason or the reason is unjustified, the employee has the right to file an unlawful dismissal claim.

Employers are not lawfully entitled to terminate an employment contract in certain circumstances. For instance, your employer legally can't fire you for being a trade union or safety committee member. Similarly, you can't be dismissed for filing a complaint in good faith.

Employers are entitled to terminate an employment agreement and dismiss the employee in the following scenarios lawfully:

• An employee's work performance is not up to standard.
• A role has become redundant.
• Force majeure, war, civil unrest, natural disasters, or an act of God.
• Non-renewal at the end of a fixed period.
• An employee is subject to summary dismissal based on their conduct.
• The relationship between the employee and employer cannot be expected to continue due to the employee's conduct.
• An employee commits a disciplinary or criminal offence or behaves indecently.
• An employee repeatedly violates or ignores the terms of employment.

Redundancy Law and statutory compensation

Redundancy in Cyprus is strictly regulated under the Termination of Employment Law (Law 24/1967). An employee is legally classified as redundant when their dismissal is driven by operational necessities rather than personal conduct or performance.

Legitimate statutory grounds for redundancy include business closure, relocation, modernisation, automation, or significant economic difficulties resulting in a permanent reduction of necessary roles.

The Redundancy Fund mechanism

Cyprus utilises a state-administered Redundancy Fund - gov.cy, financed entirely by employer statutory contributions. The fund acts as a protective buffer, guaranteeing that eligible employees receive their lawful compensation even if the employer faces financial insolvency or liquidation.

Eligibility and progressive compensation

To qualify for a redundancy payment from the Fund, an employee must have completed at least 104 weeks (2 years) of continuous service with the same employer.

Statutory compensation is calculated on a progressive scale based on the length of continuous service and the employee's final wages:

• Up to 4 years of service: 2 weeks' wages for each year.
• 4 to 10 years of service: 2.5 weeks' wages for each year.
• 10 to 15 years of service: 3 weeks' wages for each year.
• 15 to 20 years of service: 3.5 weeks' wages for each year.
• 20 to 25 years of service: 4 weeks' wages for each year.

Note: Maximum compensation is legally capped at a specific number of weeks and subject to a weekly wage ceiling determined annually by the Ministry of Labour.

Mandatory procedural requirements

Employers must adhere to strict procedural compliance. The employer is legally obligated to notify the Minister of Labour, Welfare and Social Insurance at least one month in advance of any intended redundancy, detailing the reasons and the number of affected personnel.

Conversely, the burden of claiming compensation falls on the dismissed employee. The employee must actively submit a designated claim form (SIS 600) to the Social Insurance Office within three months of their dismissal date.

Failure to meet this deadline may result in forfeiture of compensation rights, although extensions of up to 12 months may be granted if a legally valid justification for the delay is proven.

Maternity and family leave rights

Cyprus' Protection of Maternity Law of 1997 guarantees leave for female employees, while the Leave and Flexible Working Arrangements for Work-Life Balance Law of 2022 guarantees paternity and parental leave.

Employees are entitled to 22 weeks of maternity leave and up to two weeks of paternity leave.

This statute does not obligate employers to pay wages or benefits to employees on maternity leave. However, it does protect pregnant workers from dismissal due to pregnancy. Pregnant employees are entitled to paid time off and maternity benefits from Social Security during maternity leave. Fathers are entitled to paternity benefits for their two weeks’ paternity leave.

For maternity benefits, read more on the website of the Ministry of Labour and Social Insurance: Guide to Maternity Allowance and Childbirth Allowance (in Greek).

For more information on paternity benefits, please visit this page on the ministry's website: Application for Paternity Benefit (in Greek).

Minimum wage

For most employment agreements, the employer and employee negotiate a salary.

The Council of Ministers may set a minimum wage for any profession by ministerial order.

As of March 2026, the statutory national minimum gross monthly wage in Cyprus is €979 upon recruitment, increasing to €1,088 after six months of continuous employment with the same employer.

This general rule covers most full-time employees, with explicit exemptions for domestic workers, agricultural workers, maritime workers, and individuals in formal training programs. The hotel and hospitality sector is exempt from this general decree but is subject to its own mandatory minimum wage regulations.

Cyprus has transitioned to a universal statutory minimum wage covering most sectors, replacing the previous occupation-specific minimum wage orders. The national amount is periodically reviewed by the government.

Discrimination

Employment and labour law in Cyprus protects employees against all forms of discrimination (age, gender, language, race, ethnicity, nationality, religion, sexual orientation, or political beliefs). Unequal pay based on sex is prohibited explicitly in Cyprus, where workers are entitled to equal compensation for equal work. 

The law also protects employees who file sexual harassment complaints. A Gender Equality Inspector or the Ombudsman (Commissioner for Administration and the Protection of Human Rights) should investigate sexual harassment complaints.

In the event of unfairness, employees have two options. Depending on the nature of the discrimination, they may file a civil claim or a complaint with the relevant authorities. If the discrimination claim is successful, employees can claim damages, reinstatement, and attorney's fees.

Part-time and fixed-time employees should also be treated equally. Part-time workers are entitled to the same salary and benefits as full-time employees fulfilling the same duties. Employers should pay part-time workers a proportionate amount based on the number of hours worked.

Working hours

Employees working five days a week should have a maximum of 48 hours per week or eight hours a day. This restriction includes overtime. Different limitations apply in certain circumstances, such as the hotel industry. Shift workers also have other limits.

Employees are also entitled to a minimum of 11 continuous hours of rest every 24 hours. They have the right to a constant 24-hour rest period each week. Furthermore, employees are entitled to two consecutive days off with a 14-day cycle.

Similarly, night workers should not work more than eight hours a night in a calendar month.