Remote work in Cyprus

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Working from Home Policy in Cyprus

Remote work is not extensively regulated by Cypriot labour law, but it is increasingly common, especially in sectors like IT, finance, and consulting. Employers and employees can agree on flexible working arrangements, including working from home. Employers must still comply with existing labour regulations regarding working hours, health and safety, and employee rights. Additionally, Cyprus allows employers to provide a non-taxable monthly allowance to cover costs associated with remote work, helping to offset the employee's expenses for working from home.

Working hours, overtime, and compensation

In Cyprus, employers must ensure that remote employees adhere to the standard working hours—typically between 38 and 48 hours per week—depending on the industry. Any overtime work must be compensated according to Cypriot law, with a 150% rate for regular overtime and 200% for work on public holidays or Sundays.

To meet these requirements, employers should have a system in place for tracking and approving extra hours, treating remote staff the same as on-site employees when it comes to overtime pay. Failure to properly record and compensate overtime can lead to fines, legal claims, and back pay obligations.

Health and safety for remote workers

In Cyprus, employers remain responsible for ensuring that remote employees have a safe and appropriate work environment. This involves conducting risk assessments, providing ergonomic equipment such as chairs and monitors, and offering guidance on safe working practices. Additionally, employers can offer a non-taxable monthly allowance to cover remote work-related expenses like electricity and internet, helping employees manage these costs without incurring additional tax liabilities.

Failing to address these obligations—whether by neglecting workplace safety standards or not offering allowances—can result in legal liabilities for workplace injuries and may also negatively impact employee satisfaction and retention.

Data protection and confidentiality

In Cyprus, employers must ensure that remote workers comply with data protection regulations, particularly the General Data Protection Regulation (GDPR). This involves taking appropriate measures to secure personal and sensitive company data when employees access systems from home or public networks.

Employers should offer clear guidelines on safe data handling, including the use of secure networks (VPNs), strong passwords, and encrypted devices, along with training on responding to potential data breaches. Non-compliance with GDPR can result in substantial fines (up to €20 million or 4% of global annual turnover, whichever is higher), as well as reputational harm and legal repercussions.

Equipment and technology support

In Cyprus, employers are responsible for providing remote employees with the necessary tools and equipment to perform their jobs effectively, which may include laptops, monitors, and reliable internet access—or reimbursing employees who purchase such items themselves. A clear policy outlining which expenses are covered and what equipment is supplied helps prevent confusion and ensures everyone has the resources they need.

When employees use personal devices, employers should also implement cybersecurity measures to safeguard company data and maintain secure access to work systems. Failure to provide adequate equipment or technology support can hinder productivity, increase cybersecurity vulnerabilities, and lead to reduced employee satisfaction.

Workspace guidelines in Cyprus

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