Labour Department investigates construction companies over allegations of exploitation and unsafe living conditions for foreign workers.
The Labour Department is investigating cases that are shaking the foundations of the construction industry.
According to information obtained by Kathimerini, the cases concern allegations of exploitation of workers from countries outside the EU and poor, dangerous living conditions at certain construction companies operating in Cyprus. This is reportedly not the first time complaints of this kind have been made against the companies concerned and investigated by the department.
Authorities are investigating complaints that foreign workers are working in poor and dangerous conditions and sleeping on construction sites.
One telling example involves foreign construction workers being forced to sleep on building sites because their employers have failed to provide the basic necessities required under the new framework for employing foreign workers. The framework, approved by the Cabinet on Feb. 19, 2025, was intended to better regulate the employment of non-EU nationals in the Cypriot labour market.
Under that framework and the construction industry’s collective agreement, employers may, subject to certain conditions, deduct up to 25% of a worker’s pay for accommodation. This does not mean employers must deduct that amount, nor does it mean accommodation must be provided free of charge.
According to the information available, the owners of the construction companies under investigation appear to have failed to take even basic steps to ensure decent and safe accommodation for their workers, in breach of the framework’s requirements.
The workers were allegedly left to fend for themselves, exposed not only to unsuitable living conditions but also to potential risks to their health and physical safety.
If confirmed by the Labour Department, these conditions would raise serious questions about whether employers are meeting their obligations, both to provide suitable accommodation and to ensure a basic level of protection and dignity for the people working for them.
The conditions described appear to fall short of minimum standards for hygiene, safety and decent living. The complaints therefore require investigation by the Labour Department, with those responsible held accountable if violations are established.
What the framework requires
The new framework requires the employment contract submitted to the Labour Department to specify, at the time of signing, where workers will live and how many people will share the accommodation.
The accommodation must meet specific standards for hygiene, safety and decent living. Bedrooms must provide at least 4.5 square meters of space per person, and each resident must have their own bed and a wardrobe for clothes and personal belongings.
The property must also have heating or air conditioning, electricity, drinking water, a refrigerator, food storage space, a washing machine and a gas cooker.
Minimum requirements also apply to bathroom facilities: at least one shower or bathtub for every six people, one toilet for every four, and a washbasin with hot and cold running water.
Suitable kitchen and dining facilities must be provided, including somewhere to wash dishes and cooking utensils, along with a table and chairs.
Finally, the accommodation must have adequate lighting and ventilation, and entrances and exits must be capable of being securely locked.
Other irregularities
The practice of hiring workers out to other employers also remains widespread in construction, with people recruited for one line of work ending up employed in another.
As Kathimerini reported previously, the practice of hiring out foreign workers in Cyprus is a major concern for trade unions. It has been identified in numerous cases across several sectors of the economy, including construction.
One of the main reasons it persists is that cleaners are paid less than construction workers. Some employers also seek to avoid applying the mandatory collective agreements and the higher pay rates they provide for building workers.
The Labour Relations Department is well aware of the practice and is investigating specific complaints. Meanwhile, undeclared work also remains high in the construction sector.
Cyprus-Egypt agreement remains on paper
Despite severe labour shortages in key sectors, the agreement signed by Cyprus and Egypt in 2024 to recruit Egyptian workers to help meet the needs of the Cypriot labor market has yet to be put into practice.
Labour Minister Marinos Moushiouttas decided this year to expand the agreement to cover more sectors, making it more attractive to Cypriot employers.
Yet, according to information obtained by Kathimerini, not a single Egyptian worker has so far been employed in Cyprus through the agreement. Industry representatives cited several reasons for this.
The limited response from employers is attributed partly to the additional procedures and paperwork involved in recruiting workers from outside the EU.
In construction, in particular, recruiting Egyptian nationals is more difficult than hiring workers from EU countries such as Romania and Bulgaria, industry representatives said.
Businesses also appear to have received insufficient information about how to make use of the agreement—a gap that remains unresolved.
