by Andria PapageorgiouThe Obligation of Employers to Register the Essential Terms of Employment for All Employees in the “ERGANI” Information System
According to a recent Decree issued by the Minister of Labour and Social Insurance, which came into effect on 20 December 2024, all employers in Cyprus are now required to register the essential terms of employment for all their employees in the “ERGANI” information system. Each employer must complete this registration between 2 January 2025 and 28 February 2025.
Pursuant to the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023), and specifically Article 11, which forms the legal basis for this Decree, employers are now obligated to submit certain information into the “ERGANI” system. This includes details about the employer, the employee, a description of the employee’s role and position, the start date of employment, remuneration, and other key information.
More information can be found here.
The “ERGANI” information system is a digital platform through which employers must notify the authorities of hirings, terminations, and declarations of employment terms. The platform not only facilitates the management and monitoring of employment relationships but also serves as an important tool for both employers and state authorities by ensuring the proper documentation of employment terms for each employee and securing compliance with the legislation.
Compliance with the Decree for employers means the effective management of employee records, improved trust and transparency with employees, legal protection, and avoidance of fines or other legal disputes. For employees, it provides clarity and safeguards regarding their terms of employment as well as legal protection of their labor rights.
The Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023) applies to every employer and all employees. An employee is considered any person engaged under a contract or relationship of employment or apprenticeship, or under circumstances that may imply an employer-employee relationship.
Since Article 27 of the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023) refers to the imposition of penalties on employers who violate any provision of the law, and considering that the obligation to register the essential terms of employment in the “ERGANI” system arises from the provisions of Article 11, timely compliance is imperative.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouThe legislation concerning paternity, parental, caregiving, force majeure leave, and flexible work arrangements aimed at promoting work-life balance
The recent enactment known as The Work-Life Balance Law encompasses provisions regarding paternity, parental, caregiving, force majeure leave, and flexible work arrangements. On December 16, 2022, the House of Representatives approved this legislation. It guarantees paid paternity and parental leave, carer’s leave, and force majeure leave. Moreover, it grants parents of children up to 8 years old and caregivers the entitlement to request flexible work schedules from their employers. Notably, certain rights previously covered by the Paternity Protection Law and the Parental and Force Majeure Leave Law have been replaced by this new law.
Paternity Leave
The entitlement to statutory paternity leave remains unchanged, with a maximum duration of 2 weeks. This leave can be taken within the timeframe starting from the week of birth or adoption and concluding 2 weeks after the conclusion of the maternity leave period, as stipulated by the Maternity Protection Law.
The right to paternity leave is applicable irrespective of the duration of the employee’s tenure with the employer and is applicable even in instances where the child does not survive birth.
In situations where the mother passes away during childbirth or at any point during the maternity leave period, the duration of paternity leave extends for the same number of weeks as the remaining duration of the mother’s maternity leave entitlement, had she survived.
The paternity allowance is disbursed by the Social Insurance, adhering to the regulations outlined in the Social Insurance Law. Employees must inform their employer of their intention to take paternity leave at least 2 weeks in advance.
Parental Leave
Employees who have maintained continuous employment with the same employer for at least 6 months are eligible for parental leave. This leave spans 18 weeks per child, with an extension to 23 weeks under specific circumstances: (i) if the employee is a widower or single parent, (ii) if parental care rights are revoked from the other parent, or (iii) if the other parent does not acknowledge the child.
Parental leave can be taken intermittently, ranging from a minimum of 1 day to a maximum of 5 weeks per calendar year.
Except in cases where no parental leave allowance is provided for a specific period, parental leave entitlements cannot be transferred between parents. However, one parent can transfer a maximum of 9 remaining weeks to the other parent.
Employees must inform their employer at least 3 weeks in advance of the intended start date of parental leave.
Statutory Parental Leave Allowance
Until August 1, 2024, the Social Insurance Fund provides a parental leave allowance for the initial 6 weeks of parental leave. From August 2, 2024, onwards, this allowance extends to the first 8 weeks, subject to the eligibility criteria outlined in the Social Insurance Law. The applicant must have completed 12 months of employment within the last 24 months. In cases of a disabled child, the duration of the parental leave allowance is prolonged.
Flexibility
Employees retain the right to request flexible parental leave arrangements (such as part-time or reduced hours work) without forfeiting their entitlement to parental leave allowance. This request can be made for a minimum of 1 day. When making such a request, employees must specify the desired type of flexibility, duration of leave, and which portion of the parental leave should be taken flexibly.
Employers can defer the commencement of parental leave for up to 2 months for operational reasons, provided they first offer flexible work options where feasible.
Carers Leave/Force Majeure Leave
For the first time, the Law grants employees the right to request up to 5 days of unpaid leave annually as carer’s leave. This entitlement applies when an employee needs to attend to the care of a family member (as defined by the Law) or a person residing in the same household who requires substantial care or assistance due to a severe medical condition.
Carer’s leave can be taken either consecutively or intermittently.
The provision for 7 days of unpaid force majeure leave per year, previously addressed in distinct legislation, is now governed by the Law.
Flexible Work Arrangements
Under the new legislation, working parents with children up to the age of eight and any caregiver (as outlined in the Law) now have the right to seek flexible work arrangements for caregiving purposes. Flexible work arrangements encompass adjustments to an employee’s work patterns, which may include remote work options, flexible schedules, or reduced hours.
To qualify for this benefit, employees must have maintained six months of continuous employment with the same employer. Employers are required to respond to such requests within one month and retain the authority to defer or decline requests, providing pertinent justifications for their decisions.
Preservation of Employment Rights during Paternity, Parental, Care, or Force Majeure Leave
According to the Law, taking leave under its provisions should not impact an employee’s seniority, opportunities for promotion, or their ability to return to equivalent positions with the same pay and benefits. Additionally, any period of absence is considered as time worked when calculating an employee’s annual leave entitlement. Similarly, under the Termination of Employment Law of 1967, such absences are to be counted as part of the employment period. Given these changes, employers are encouraged to review and revise their employment manuals, contracts, and practices to align with the new legislation.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouEmployment and Labour Law in Cyprus
A. Introduction
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, contract law’s standard principles underlay all employment agreements in Cyprus. As such, it is understood that both parties agreed to the terms and conditions of the contract freely and willingly. Several statutory regulations and obligations, such as the Termination of Employment Law of 1967, and collective agreements, complement common law to ensure that employee rights are protected.
B. Employee Rights Safeguarded by the Statute
In addition to honouring contract law, employers are obligated to uphold all employees’ constitutional rights (to work, strike, and be treated equally in the workplace). Furthermore, several statutes related to employment exist to safeguard workers’ rights in Cyprus. The most important is the Termination of Employment Law of 1967. Others include:
- The Termination of Employment Law of 1967, as amended;
- The Social Insurance Law of 1980, as amended;
- The Annual Paid Leave Law of 1967, as amended;
- The Protection of Maternity Law of 1997;
- The Minimum Salaries Law, as amended;
- The Equal Treatment at Work and Employment Law of 2004, as amended;
- The Health and Safety at Work Law of 1996, as amended;
- Law 100(I)/2000, providing for an employer’s obligation to inform employees about the conditions applicable to their contract or employment relationship; and
- The Collective Redundancies Law of 2001.
Employers are also obligated to inform employees of conditions related to the employment relationship or any changes to those conditions.
C. Employment Contracts
The starting point of Employment Law is based on the Law of Contract. An Employment Contract is, however, complemented by the relevant employment law principles.
Freedom of contract allows employers and employees to negotiate the terms of employment and such terms will be considered valid if they do not violate any other law or policy.
Additionally, article 25 of the Cypriot Constitution safeguards the right of individuals to engage and practice any professional or to carry on any occupation, trade, or business.
The exercise of this right may be subject to such formalities, conditions or restrictions as are prescribed by law and relate exclusively to the qualifications usually required for the exercise of any profession or are necessary only in the interests of the security of the Republic or the constitutional order or the public safety or the public order or the public health or the public morals or for the protection of the rights and liberties guaranteed by this Constitution to any person or in the public interest.
The Law is very clear about the obligation of the employer to bring to the employee’s attention detailed information about the Employment Contract within one month from the commencement of the relationship. The information can be delivered by employment contract or by letter of appointment.
As a minimum, an employment contract must contain the following information:
- The identity of the parties;
- The place of work and the registered address of the business;
- The position or the specialisation of the employee;
- The commencement date of the contract and its duration if it is for a fixed period;
- Notice periods;
- Annual leave entitlement;
- All the payments (salary, bonuses and so on) which the employee may be entitled to and time schedule for their payment;
- The usual duration of daily or weekly employment and
- The application of any collective agreements.
Employment Contracts can be written in any language that is understandable to both parties or, if the contract is written in a language that the employee does not understand, its provisions must be orally explained to the employee. However, it is advisable for the employer to obtain the confirmation of an independent professional (for example, a lawyer) that the terms of the contract have been appropriately explained to the employee.
Amendments to an employment contract may only be made with the consent of both parties.
D. Termination of Employment in Cyprus
In Cyprus, the most important employment law related statute is the Termination of Employment Law. It regulates termination of employment, and its primary purpose is to protect employees against dismissal. This law covers all employees, whether in the private or public sector.
According to the Termination of Employment Law of 1967, employers must give adequate notice of termination. However, the notice period varies depending on the length of service:
- 26 to 52 weeks of service requires a notice period of one week,
- 52 to 104 weeks of service requires a notice period of two weeks,
- 104 to 156 weeks of service requires a notice period of four weeks,
- 156 to 208 weeks of service requires a notice period of five weeks,
- 208 to 260 weeks of service requires a notice period of six weeks,
- 206 to 312 weeks of service requires a notice period of seven weeks, and
- 52 to 104 weeks of service requires a notice period of eight weeks
Employers are obligated to provide a reason for dismissal. If they cannot give a reason or the reason is unjustified, the employee has the right to file a claim of unlawful dismissal.
There are certain circumstances where employers are not lawfully entitled to terminate an employment contract. For instance, your employer legally can’t fire you for being a member of a trade union or a safety committee. 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 offense or behaved indecently;
- An employee repeatedly violates or ignores the terms of employment.
Termination based on redundancy has to meet certain criteria as well. If a company closes or relocates to a different premise, an employer may terminate the employment agreement lawfully as long as employees are given adequate notice. Technological advances or any other changes in its production method may also cause redundancy. Also in the below cases, a company has grounds to let go of employees on the bases of redundancy:
- when companies downsize,
- experience a reduction in profits,
- if a product is no longer successful in the market.
E. Maternity and Family Leave Rights
Cyprus’ Protection of Maternity Law of 1997 guarantees female and male employees leave after a child’s birth. Employees are entitled to 18 continuous weeks of maternity leave and up to two weeks of paternity leave.
This statute doesn’t obligate employers to pay wages or benefits to employees on maternity leave. However, it does protect pregnant workers from dismissal due to pregnancy. Additionally, pregnant employees are entitled to paid time off.
F. Minimum Wage
For most employment agreements, the employer and employee agree upon a salary through negotiation. However, certain occupations have a guaranteed minimum wage. The amount is set yearly by the Ministerial Council’s order, which sits annually on the 1st of April. The minimum wage statutes cover the following workers:
- Shop assistants
- Clerks
- School assistants
- Security guards
- Nursing assistants
- Assistant baby and childminders
- Employees with caring and sanitation duties in senior living communities, private hospitals, and clinics.
- A minimum hourly wage exists for security guards and cleaners.
G. 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. Sexual harassment complaints should be investigated by a Gender Equality Inspector or the Ombudsman.
In the event of unfairness, employees have two options. They may file a civil claim or file a complaint to the relevant authorities depending on the nature of discrimination. If the discrimination claim is successful, employees are entitled to claim damages, reinstatement, and attorney’s fees.
Part-time and fix-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 pro-rata to the number of hours worked.
H. Annual Leave
Each employee that has worked 48 weeks within one year is entitled to an annual leave with pay of four weeks. Employees, who work 5 days a week, are entitled to annual leave of 20 working days, whereas employees who work 6 days a week, to annual leave of 24 working days.
Temporary absence from work due to an accident, sickness, maternity, parental leave or leave on grounds of force majeure, is considered as a working period. If the employee had worked for a period less than 48 weeks within the year, the annual leave of four weeks is reduced accordingly. The right of employees to annual leave for more than four weeks under any other law, agreement or custom, is safeguarded by the Annual Holidays with Pay Law.
I. Working Hours
Employees working a five-day week should not exceed 48 hours per week or eight hours a day. This restriction includes overtime. There are circumstances where different limitations apply. The hotel industry is one example. Shift workers also have other limits. Employees are also entitled to a minimum of 11 continuous hours of rest every 24 hours. Also, they have the right to a constant 24-hour rest period each week. Furthermore, employees are entitled to either two consecutive days off with a 14-day cycle.
Similarly, night workers should not, on average, work for longer than eight hours a night in a calendar month.
J. Employee’s data protection rights and employer’s data protection obligation
The employer must ensure that data is processed in accordance with the law and for specific and legitimate purposes. The processed data must be relevant, appropriate and not excessive in relation to the purpose of processing.
Furthermore, for data to be legally processed, the employee must explicitly give his consent, unless the processing is either:
- Necessary for compliance with a legal obligation to which the employer is subject;
- Necessary for the performance of a contract to which the data subject is party;
- At the employee’s request and
- Necessary to protect the vital interests of the employee.
K. AP Law Firm
Andria Papageorgiou Law firm can assist you with any Employment matter, including, among others, the below services:
- Inform Clients of their rights and obligations under the law;
- Advise Clients to any employment issue;
- Provide Legal Opinion on any employment issue;
- Drafting of Employment Contracts, Confidentiality Agreements, Management Contracts, Offer Letters and any other document related to the Employment;
- Reviewing/Drafting Employment Policies and Employment Handbooks;
- Handling unfair dismissal claims and discrimination cases.
- Assisting Clients with the process of filing a claim and a court case.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.