Hiring globally? Discover key employment law changes across 20+ countries happening in 2025 to ensure your team remains compliant.
Download the GuideIn Cyprus, employers must provide fair and regulated working conditions, including standard working hours (38-48 hours per week), minimum wage compliance, and contributions to the Social Insurance Fund for employee benefits such as pensions and sick leave. They are also responsible for ensuring workplace safety and offering at least 20 days of annual paid leave, alongside other statutory leave entitlements. These regulations ensure employees are treated fairly, compensated properly, and work in safe environments.
In Cyprus, employees are entitled to regulated working hours and safe working conditions. Standard weekly hours typically range between 38 and 48, with employers required to provide overtime pay for any additional hours worked. At the same time, they must comply with health and safety regulations to protect employees from workplace hazards. The Organisation of Working Time Law ensures that employees are not overworked, while the Health and Safety at Work Law mandates safeguards for a secure working environment.
Employers are required to provide employees with a written employment contract that outlines the terms and conditions of employment. The contract must include details such as job title, duties, salary, working hours, and terms of termination. This protects employees from any arbitrary changes to their employment terms once they are hired.
As of April 2023, the probation period in Cyprus is capped at a maximum of six months, in line with the Transparent and Predictable Working Conditions Law of 2023. This marks a significant reduction from the previous allowance of up to 104 weeks. Exceptions exist for employees in directorial positions, where longer probation terms may be agreed upon.
Employers should clearly outline the probation period in the employment contract, detailing both its duration and assessment criteria. For fixed-term contracts, the probation period must be proportionate to the contract’s overall length. Any absences during this period may extend its duration. Failure to comply with these guidelines can result in legal disputes and potential penalties, highlighting the importance of adhering to the updated legal framework.
In Cyprus, non-compete clauses are enforceable if they are reasonable in scope, duration, and geographic area, and serve to protect legitimate business interests. Overly restrictive clauses may be deemed unenforceable by the courts. Employers should tailor these provisions to the specific role, avoiding excessive limitations on the employee’s future job opportunities. Generally, durations of 6 to 12 months are considered acceptable, depending on the employee’s position and access to sensitive information. Employees who violate valid non-compete clauses may face legal actions, while employers risk having unreasonable clauses invalidated.
In Cyprus, intellectual property (IP) created by employees during their employment is usually governed by the terms of the employment contract. Employers should include clear IP clauses specifying the ownership of any work-related inventions, designs, or creations developed on the job, ensuring both parties understand their rights and obligations. Failure to clarify these details can lead to legal disputes, with either party potentially claiming rights to the IP. By defining ownership from the outset, employers and employees can prevent misunderstandings and safeguard their respective interests.
Under Cyprus’s Preservation and Protection of the Employee’s Rights during the Transfer of Business Law (Law 104(I)/2000), employees are guaranteed continuity in their employment terms when a business or part of it is transferred. This means they automatically join the new entity without losing existing rights and conditions. Both the outgoing and incoming employers must inform and consult with employees or their representatives about the transfer and its effects. Non-compliance can result in unfair dismissal claims, compensation demands, and other legal disputes from the affected workforce.
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