The 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certain rights previously covered by the Paternity Protection Law and the Parental and Force Majeure Leave Law have been replaced by this new law.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.
New Incentive Scheme To Be Launched To Attract High Tech Companies
Cyprus Government presented recently a new proposal for the attraction of businesses and digital nomads, placing an emphasis on domains related to High-tech, Research & Development and Shipping.
The establishment of this proposal has an attempt to make Cyprus an attractive investment destination in the wider region and Europe and is expected to come into force as from January 2022.
In general the suggested main pillars of the new proposal are as follows:
A. Employment of Non-EU Nationals:
Employment of Non-EU Nationals with a General Minimum salary of €2.500 for highly skilled employees, while a university degree or at least 2 years experience are required. The work permits will be issued within one month and will last up to 3 years. The maximum work permits for Non-EU Nationals per Company is 70% for a 5-year period. The Companies will need to be able to employ Non-EU Nationals as supporting staff with salaries below €2.500 (Maximum 30% of the total supporting staff of the entity).
B. Employment of family members:
Non-EU employee’s spouses, who are employed in a Company operating under the provisions of the Business Facilitation Unit (excluding the supporting staff category) will also have immediate and free access to Cyprus labour market.
C. Digital Nomad Visa:
A new type of permit the so-called Digital Nomad Visa will be introduced for those who wish to live in Cyprus but work remotely for companies operating abroad. This Digital Nomad Visa will have a maximum quota of 100 applications. The visa will be granted for the period of 1 year with the right to renew it for another 2 years. The Digital nomads’ minimum threshold of funds coming from abroad (salary, bank statements, etc.) is €3.500, plus an additional 20% for the spouse and 15% for any minor.
D. Naturalization of Non-EU Nationals employed in Cyprus:
According to the new proposal, non-EU Nationals who are employed in Cyprus, will be able to apply for citizenship after 5 years of residency instead of 7. For those who have a very good knowledge of the Greek language with a proof of certification, will be able to apply for citizenship after 4 years.
E. Simplification of the process for obtaining Permanent Residency:
The actual proposal provides a simple process for obtaining Immigration Permits and Long-Term residency permits. Relevant Regulations of the Aliens and Migration Law will be amended in order to speed up the process of the applications.
F. AP Law Firm:
Andria Papageorgiou Law Firm can assist with any of the above matters. Therefore, should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
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.
Cyprus Visas and Permits
A. Introduction
All non-EU citizens who wish to enter the territory of the Republic of Cyprus have various options of visas, including the short-stay visa, temporary residence permits, immigration permits, and residence permits for family members.
B. Short Stay Visas
When it comes to business or vacation purposes (i.e. non-immigration related) for less than three (3) months, non-EU citizens should apply for the short-stay visa. This type of visa can be issued as a multiple-entry, allowing non-EU citizens to visit Cyprus several times, or a single entry visa.
However, if a non-EU citizen is planning to visit Cyprus on a frequent basis for business purposes or otherwise, there is the option of obtaining a multiple entry visa for one year, although the total visits must not exceed ninety (90) days, starting from your first visit during each six (6) month period.
C. Temporary Residency Permit (“Pink Slip”)
Non-EU citizens who wish to visit Cyprus for a long-term, without any employment rights, should obtain special temporary residency permit (“pink slip”). This type of permit can be issued for a period of 1 to 4 years (with a limitation of absence period not more than 4 months). A “Pink Slip” could be issued for a period of 1-2 years upon first application and will be easily extended for a further 1-2 years period thereafter.
- “Pink Slip” – Visitor Visa
Visitor Visas are normally provided to applicants under the following categories:
- Spouses from third countries that are married to Cypriot citizens or parents-in-law from third countries or underage children of foreigners (younger than 18 years) who have applied for family reunification and a residence permit;
- Third country nationals that apply for an extension of their visitors visa and which have enough funds from abroad to support themselves (or foreigners who have enterprises in Cyprus);
- Applicants who have received temporary entry permits from consular authorities of Cyprus abroad; having the term FINAL on them, may apply for an extension when special reasons are taken into consideration (e.g. Humanitarian reasons, householders of property in Cyprus etc);
- “Pink Slip” – Student Visa
Each student who takes a long-term course at a Cyprus educational institution must obtain permission for long stay. Students from non-EU countries can be issued visas by an Embassy / Consulate of the Republic of Cyprus in the student’s home country or by the Migration Department of Cyprus. International students must report to their educational institution immediately upon arrival to register and complete other formalities required for obtaining further temporary resident permits.
- “Pink Slip” – Employment Visa
Applications for the issue of Entry and Temporary Residence and Employment Permits must be submitted by the Cypriot employer through the District Office of the Aliens and Immigration Unit of the Police or at the Central Offices of the Civil Registry and Migration Department in Nicosia. The applications should be submitted along with the contract of employment certified by the Department of Labor of the Ministry of Employment and Social Insurance, which is the competent Department for securing that there are no Cypriots or citizens of Member States of the European Union, available or adequately qualified for the specific job or post prior to recommending the employment of third country nationals. The applicant must proceed to register with the District Office of the Aliens and Immigration Unit of the Police. The maximum duration of employment in most cases is four years (exemptions may apply).
Companies who meet the criteria to be classified as foreign interest companies are also eligible to employ third country nationals in Cyprus. They must meet the following criteria:
- The majority of the company’s shareholders or ultimate owners should be foreign;
- The company should operate from their its own fully fledged offices in Cyprus;
- New companies should prove that they have direct foreign capital investment amounting to at least EUR 171,000 brought legally to Cyprus from abroad.
Documents required for Temporary Residence Permit (Pink Slip) application (where applicable):
- Copy of sale agreement or rental agreement or title deed;
- Copy of employment contract duly signed and stamped;
- Proof of funds deposited in a personal bank account;
- Passport(s) copy (plus copy of first page and last entry stamp);
- Pension certificates + translation and any other source of income such as interest, rental income, other investments. The applicant must provide evidence of steady and regular income, adequate for the maintenance of the applicant and his/her family, from external sources;
- Bank guarantee (as required);
- Marriage certificate + translation with apostil (Russians exempted);
- Birth certificate for children + translation with apostil (Russians exempted);
- 4 photos for first issue (1 photo for renewal);
- Medical Insurance which is automatically renewable
D. Immigration Permits
Non-EU aliens could apply for immigration permits if they are qualified for the Categories as listed below under the 5th Regulation of the Aliens and Immigration Regulations of Cyprus:
Category A: Persons who intend to work as self employed in agriculture, cattle breeding, bird breeding or fish culture in the Republic, provided that they have in their possession adequate land or a permit to acquire same, they have fully and freely at their disposal capital of approximately €430,000 (CY£250,000) and such an employment should not negatively affect the general economy of the Republic.
Category B: Persons who intend to work as self employed in mining enterprises in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of approximately €350,000 (CY£200,000) and such an employment should not negatively affect the general economy of the Republic.
Category C: Persons who intend to work as self employed in a trade or profession in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of approximately €260,000 (CY£150,000) and such an employment should not affect negatively the general economy of the Republic.
Category D: Persons who intend to work as self employed in a profession or science in the Republic, provided that they have academic or professional qualifications, for which there is demand in Cyprus. Possession of adequate funds is also necessary.
Category E: Persons who have been offered permanent employment in the Republic, which will not create undue local competition.
Category F: Persons who possess and have fully and freely at their disposal a secured annual income, high enough to give them a decent living in Cyprus, without having to engage in any business, trade, or profession.
The annual income required should be at least €9568,17 (CY£5,600) for a single applicant and moreover at least €4613,22 (CY£2,700) for every dependent person, but the Immigration Control Board may demand additional amounts as necessary. Most applicants come under this Category, the majority of them being pensioners or retired persons.
This is the only category where a permit can be obtained by all family members simultaneously. An Immigration Permit will be automatically cancelled if the interested person fails to acquire residence in Cyprus within one year from the approval of the application, in case he/she is residing outside Cyprus. It will also be cancelled if he/she acquires permanent residence abroad or be absent from Cyprus for a period of two years.
Ε. Residency Permits
- Residency Permit for non-EU family members of non-EU citizens:
Non-EU family members of a third country national who has prospects of applying for a permanent residency permit in Cyprus, can obtain a Resident Permit. Non-EU family members such as a spouse and unmarried children under 18 years old can obtain a Resident Permit upon providing documentary evidence of the family relationship (e.g. birth certificates) with a third-country national who holds a residence permit valid for at least one year and who has resided legally within Cyprus for a period of at least 2 years. Upon application for Family Reunification non-EU family members may obtain a Residence Permit.
- Residency Permit for non-EU family members of EU citizens:
Non-EU family members of EU citizens who reside in Cyprus can obtain a Resident Permit. Non-EU family members such as a spouse and unmarried children under 18 years old can obtain a Resident Permit upon providing documentary evidence of the family relationship (e.g. birth certificates) with the EU citizen.
The Residency Permit issued to a non-EU family member is valid for five years from the date of the issue or for the envisaged period of residence of the EU citizen.
Finally, please note that all the documents issued by a foreign authority (either for applying for temporary or permanent residence permit) should be translated to either Greek or English and be duly authenticates (they should bear the stamp “APOSTILLE”, if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).
F. AP Law Firm:
Andria Papageorgiou Law Firm can assist you with the below:
- Provision of a Legal Opinion on any Immigration matter;
- Advice and preparation of any type of application, according to each Client’s case;
- Support and assistance through all the procedure from initial property purchase, if required;
- Advice on required documents;
- Preparation and submission of the necessary applications;
- Collection of the relevant cards.
Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.
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.
Employment 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 info@apapageorgiou.com.
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.