At a workshop on equality in employment organized by the Ministry of Labour in collaboration with the Cyprus Association of Certified Public Accountants (ICPAC), Senior Labour Relations Officer Xenios Mamas presented two main labour legislations: the Amending Law on the Protection of Wages (L.221(I)/2022) and the Law on Transparent and Predictable Working Conditions of 2023 (L.25(I)/2023).
Wage Protection: Payment, Cuts and Controls
The new law provides that the salary must be paid to a bank account, payment account or bank cheque in the name of the employee. Cash payments are only allowed in special cases, such as while waiting for an account to be opened or on a weekly basis under a collective agreement.
Every employer is obliged to issue a payslip and deliver it to the employee within five working days. Cuts from the salary must be provided for by collective agreements or only made with the written consent of the employee, in a special form.
Record-keeping is mandatory for at least six years and concerns gross and net earnings data. In case of an inspection, the employer has a period of 15 days to send the requested data.
The law also provides for criminal liability for natural persons involved in the management of companies, if complicity in the infringement is proven.
New legal framework for transparency in labour relations
Law 25(I)/2023 establishes an obligation to provide clear information to employees about the terms of their employment. Employers must inform in writing before or within 7 days of the start of work (basic briefing), and within one month of additional information, including training rights, permits and termination procedures.
For employees outside the Republic or on secondment, additional information on salary, allowances, expenses and repatriation is required.
Changes to the contract must be notified in good time. Terms contrary to the law are considered invalid. There is also the right to switch to safer forms of employment after 6 months of work with the same employer.
The law prohibits unfavourable treatment on the grounds of parallel employment unless there are substantiated reasons of security or a conflict of interest.
Compliance and worker protection mechanisms
The Ministry of Labour may issue a compliance requirement to employers in cases of violation. Protection from dismissal is provided for those employees who file a complaint or exercise rights deriving from the law.
Violations are examined by the Labour Court and are punishable by a fine of up to €5,500. The Act shall be without prejudice to more favourable provisions contained in other legislation or collective agreements.
