Employment relationships in Cyprus are governed by a combination of legislation, European law principles, collective agreements and the individual contract of employment. In practice, many of the questions we receive from both employers and employees concern everyday workplace issues such as working hours, leave, termination and statutory rights. This FAQ addresses the matters most frequently raised in our practice and is intended as a general guide only. The correct legal position will always depend on the specific facts of each case.
This FAQ is prepared by A. Danos & Associates LLC and is provided for general information purposes only.
What laws govern employment in Cyprus?
Employment relations are governed by a combination of statutes, EU‑derived legislation and, in some sectors, collective agreements. Key laws include the Termination of Employment Law (Law 24/1967, as amended), the Annual Holidays with Pay Law (Law 8/1967, as amended), the Organisation of Working Time Laws of 2002 to 2007, the Protection of Wages Law (Law 35(I)/2007, as amended), the Social Insurance Law (Law 59(I)/2010, as amended), the Protection of Maternity Law (Law 100(I)/1997, as amended), and the Transparent and Predictable Working Conditions Law (Law 25(I)/2023, as amended).
Do employees have to be given a written contract?
A written contract is strongly recommended. Cyprus law requires employers to provide employees with clear written information on the essential terms of employment, including duties, remuneration, working time, place of work, notice provisions and any probation period. Proper written documentation significantly reduces the risk of disputes.
What is the statutory minimum wage in Cyprus?
From 1 January 2026, the national minimum gross monthly wage for full‑time employment is €979 on recruitment and €1,088 after six months of continuous employment with the same employer. Certain sectors remain excluded or are regulated separately, and part‑time remuneration is calculated on a pro‑rata basis.
What are the normal working hours, and is overtime allowed?
Many workplaces operate on a 40‑hour working week, typically over five days. Under working‑time legislation, average weekly working time, including overtime, must not exceed 48 hours calculated over a reference period. Overtime compensation is usually governed by the employment contract or any applicable collective agreement.
What rest breaks and rest periods are employees entitled to?
Employees are generally entitled to a daily rest period of at least 11 consecutive hours per 24‑hour period and a weekly rest period of at least 24 consecutive hours. A rest break during the working day is also required where working time exceeds the statutory threshold.
How much annual leave is an employee entitled to?
The statutory minimum annual leave entitlement is four weeks of paid leave. In practice this corresponds to at least 20 working days for a five‑day working week and 24 working days for a six‑day working week, subject to pro‑rata adjustment depending on the period of employment within the leave year.
Are public holidays mandatory?
Whether public holidays are granted as paid leave depends primarily on the employment contract, workplace practice or any applicable collective agreement. Some sectors are governed by specific regulatory arrangements.
What happens if an employee is sick? Who pays?
Sickness benefit is mainly regulated through the Social Insurance system. Entitlement, waiting periods and the level of benefit depend on statutory conditions and contribution history. Any employer payment during sickness absence is determined by the employment contract, policy or collective agreement.
What maternity, paternity and parental leave rights exist?
Maternity leave is currently 22 consecutive weeks for the first and second child and 26 weeks for the third and subsequent child, subject to statutory conditions. Paternity leave is available for two consecutive weeks, and parental leave is granted individually to each working parent for a total duration of up to 18 weeks per child, subject to scheduling rules and statutory requirements.
Can an employer dismiss an employee at any time?
Dismissal is regulated by law. Employers must have a lawful ground for termination and must follow a fair procedure. Employees who consider their dismissal unlawful may seek remedies before the Labour Disputes Court, including compensation where appropriate.
What notice must be given on termination?
Minimum statutory notice periods depend on the employee’s length of continuous service and range from one week to a maximum of eight weeks. Employment contracts or collective agreements may provide for longer notice periods.
Can an employee be dismissed without notice?
Summary dismissal without notice is permitted only in limited circumstances, such as serious misconduct. Because such action carries legal risk, employers should ensure proper investigation and procedural fairness before proceeding.
What is redundancy, and is severance payable?
Redundancy arises where a position ceases to exist for economic, technical or organisational reasons. Eligible employees may be entitled to statutory redundancy payment from the Redundancy Fund, provided the legal conditions are satisfied.
Is there a probation period in Cyprus?
Probationary periods are commonly agreed contractually. Although termination during probation may be simpler, employers must still act lawfully and without discrimination.
What protections exist against discrimination and harassment?
Cyprus law prohibits discrimination in employment on grounds including sex, race or ethnic origin, religion or belief, age, disability and sexual orientation. Harassment and sexual harassment are also unlawful, and employers are expected to maintain appropriate workplace policies and procedures.
Can employers monitor emails, CCTV, or employees’ devices?
Any workplace monitoring must comply with GDPR and Cyprus data‑protection legislation. Employers must ensure transparency, proportionality, lawful basis for processing and adequate data security.
What if an employee resigns or agrees to mutual termination?
Employees may resign subject to contractual or statutory notice requirements. Mutual termination agreements are permitted but should be carefully documented, particularly where settlement terms or waivers of claims are involved.
What records should an employer keep?
Employers should maintain clear records of employment contracts, payroll and payslips, working time, leave, disciplinary procedures, performance matters and relevant correspondence. Proper record‑keeping is often critical in resolving disputes.
When should legal advice be sought?
Legal advice is recommended before dismissals, redundancies, significant contractual changes, handling discrimination complaints, or implementing monitoring or disciplinary procedures.
Our Services
Danos & Associates LLC advises both employers and employees on all aspects of Cyprus employment law, including drafting employment contracts and policies, regulatory compliance, terminations, redundancy planning, settlement agreements and representation before the Labour Disputes Court.
