There is no statutory distinction between blue-collar and white-collar workers in Cyprus.

The only distinction is between employed and self-employed individuals for the purposes of social security contributions and payments.

Although there are legal provisions safeguarding fixed-term employees from abuse vis-à-vis indefinite-term employees, and likewise, part-time employees vis-à-vis full-time employees, these “categorisations” do not constitute separate employee status.

Employees must (and are entitled to) receive in writing or electronically, within seven calendar days from the commencement of their employment, the following information at a minimum:

• the identities of the parties to the employment relationship;
• the place of work – where there is no fixed or main place of work, the principle that the worker is employed at various places or is free to determine their place of work – and the registered place of the business or, where appropriate, the domicile of the employer;
• either:
1. the title, grade, nature or category of work for which the worker is employed; or
2. a brief specification or description of the work;
• the date of commencement of the employment relationship;
• in the case of a fixed-term employment relationship, the end date or the expected duration thereof;
• the duration and conditions of the probationary period, if any;
• the remuneration, including the initial basic amount, any other component elements, if applicable, indicated separately, and the frequency and method of payment of the remuneration to which the worker is entitled;
• if the work pattern is entirely or mostly predictable, the length of the worker’s standard working day or week and any arrangements for overtime and its remuneration and, where applicable, any arrangements for shift changes; and
• if the work pattern is entirely or mostly unpredictable, the employer must inform the worker of:
1. the principle that the work schedule is variable, the number of guaranteed paid hours and the remuneration for work performed in addition to those guaranteed hours;
2. the reference hours and days within which the worker may be required to work; and
3. the minimum notice period to which the worker is entitled before the start of a work assignment and, where applicable, the deadline for cancellation of the employment relationship.

Employees must also (and are entitled to) receive in writing or electronically, within one calendar month from the commencement of their employment, the following information:

• in the case of temporary agency workers, the identity of the user undertakings, when and as soon as they are known;
• the training provided by the employer, if any;
• the amount of paid leave to which the worker is entitled or, where this cannot be indicated when the information is given, the procedures for allocating and determining such leave;
• the procedure to be observed by the employer and the worker, including the formal requirements and the notice periods, where their employment relationship is terminated or, where the length of the notice periods cannot be indicated when the information is given, the method for determining such notice periods;
• any collective agreements governing the worker’s conditions of work or in the case of collective agreements concluded outside the business by special joint bodies or institutions, the name of such bodies or institutions within which the agreements were concluded; and
• where it is the responsibility of the employer, the identity of the social security institutions receiving the social contributions related to the employment relationship and any protection relating to social security provided by the employer.

The only distinction between written contracts for fixed-term and indefinite-term employees is that fixed-term contracts need to also state the anticipated duration.

Otherwise, the legal framework for fixed-term contracts does not mandate any additional terms to be in writing, but it is intended to prevent abuse and discrimination. By way of example, where successive fixed-term contracts exceed 30 months of continuous employment, the employee may then be considered to be an indefinite-term employee, unless certain objective circumstances apply, as provided by law.

Working hours legislation provides that the number of weekly working hours should not exceed 48, including overtime, over a four-month reference period. Employment in excess of 48 hours triggers a number of obligations, including reporting. At the same time, the minister of labour and social insurance has discretion to prohibit or restrict individual businesses from exceeding the 48 hours of work per week.

There are, however, special provisions in relation to certain professions, particularly in the retail sector, the tourism sector, and among mining and clerical staff. For example, pursuant to a ministerial decree, clerical staff, which includes administrative staff, secretaries, junior staff and messengers, must not work in excess of 44 hours per week in total or eight hours per day, which in both cases does not include mealtimes.

Employees are entitled to a minimum of 11 continuous hours of rest per day, 24 continuous hours of rest per week and either two rest periods of 24 continuous hours each or a minimum of 48 continuous hours within every 14-day period.

Night workers should not, on average, exceed eight working hours per day within a period of one month or any other period specified in a contract. Night workers whose work is hazardous or physically or mentally demanding should not exceed eight hours of night work (although certain derogations are permitted).

Managing executives or persons with autonomous decision-making powers, family staff, and employees in religious institutions are exempted from the limitations on working hours, subject to principles of general health and safety.

Flexible arrangements are possible, provided working hour restrictions are followed.

There are no specific overtime regulations, and overtime is usually regulated by individual or collective agreement (with a few exceptions regulated by law, such as in the retail sector), provided that the working hours’ ceiling is adhered to.

Finally, there are no specific additional terms that need to be mentioned in a part-time contract, over and above those mentioned in 1.2 Employment Contracts. However, the legal framework for part-time contracts is intended to prevent abuse by guaranteeing certain minimum rights, such as the number of statutory leave days and right of access to collective employee representation.

In general, apart from the minimum standards of protection set out below, salaries are not regulated by law and can be negotiated by the employer and the employees (or their representatives) through individual or collective agreements.

Minimum Wage

Exclusions

By decree of the Council of Ministers, which came into force on 1 January 2023 and was later amended by a decree which came into force on 1 January 2024, the minimum wage has been set for all employees working in the Republic of Cyprus, excluding the following categories:

• domestic workers;
• agricultural and livestock workers;
• maritime workers;
• employees that benefit from more favourable arrangements by law, contract, practice or custom;
• employees in the hotel industry covered by the Decree on Minimum Wage in the Hotel Industry of 2023; and/or
• any employee who receives training or education provided for by law, practice or custom to obtain a diploma and/or to practise a profession.

Working hours

The above decrees also provide that the working hours of the employees must remain as they were at the time the decrees came into force, as determined either by collective agreement, or by a written agreement between the employer and the employee.

Adjustments

Α readjustment mechanism has also been instituted and it will operate every two years, commencing as from 2024.

In the case of seasonal workers under 18 years of age, whose duration of work does not exceed two consecutive months, the minimum wage may be reduced by 25%. Further, the minimum wage for employees whose food is covered by the employer may be reduced by 15%, and when accommodation is covered by the employer, by a further 10%. The employee nevertheless retains the right to terminate such an arrangement by providing 45 days’ notice to the employer.

The minimum wage for full-time employment is set at EUR900 per month, which increases to EUR1,000 after six months of continuous employment with the same employer.

There is also an additional decree concerning minimum wages for different job positions within hotels. Depending on the job position, the minimum wage varies between EUR932 and EUR1,147 per month and/or between EUR5.66 and EUR6.97 per hour.

Overtime pay

Overtime pay is not generally regulated by law in Cyprus but by individual or collective agreement. There are a few exceptions regulated by law, such as the retail and hospitality industry sectors.

Executive compensation

There is also no general regulatory requirement or limitation on executive compensation in Cyprus. It is, however, possible for contracts of executives in the financial industry to be subject to approval by the Central Bank of Cyprus or the Cyprus Securities and Exchange Commission, depending on the type of financial institution.

Annual Leave

The minimum holiday entitlement per year is 20 working days for employees working five days a week and 24 working days for employees working six days a week, provided that the employee has already worked for at least 48 weeks within the year, which will be paid through the Central Holiday Fund to which each employer contributes.

When employers opt to pay the annual leave directly to the employees and provide more beneficial terms than the law – that is, at least 21 or 25 working days respectively – they can apply to be exempted from having to pay contributions to the Central Holiday Fund.

If the employee has worked for a period shorter than 50 weeks, they are entitled to the pro rata amount of holiday pay. Annual leave may be accumulated for two years, only if this is agreed between the employer and the employee. The above are only the statutory minimums, and the parties are free to agree to more generous terms for the employee.

Sick Leave

The number of sick leave days, and whether these will be paid or unpaid by the employer, is a contractual matter. If there is no provision within the contract of employment (or collective agreement), a sickness allowance is in any case payable by the Social Insurance Fund for any period longer than three days over which an employee is unable to work. The weekly entitlement is 60% of the weekly average of basic insurable earnings within the previous year and is increased by one third for the employee’s first dependant (including a spouse, whether or not in employment) and one sixth for each child or another dependant. The maximum number of days for which sick pay is payable is 156 days for every period of interrupted employment. This can be extended for a further period of 156 days during the same period of interrupted employment, provided that the insured is eligible to receive an incapacity pension but is not expected to remain permanently incapacitated from working.

The above provisions do not apply to employees in hotels and catering services where they are legally entitled to sick leave with full pay from their employers, for a specific number of days, depending on their period of employment. Any sickness allowance from the social insurance fund due to illness, as described above, is deducted from the benefits payable to the employee pursuant to this paragraph.

Maternity Leave

Employees may also take maternity leave of up to 22 continuous weeks (for the birth of the mother’s first or second child) and 26 continuous weeks (for the birth of the mother’s third child or more children). Female employees who are about to adopt a child under the age of 12 years are entitled to 20 consecutive weeks’ maternity leave, or where this is their third child or more, 24 weeks’ maternity leave, starting immediately from the date on which they begin to care for the adopted child(ren).

A surrogate mother is also entitled to maternity leave of a total of 14 consecutive weeks which must start two weeks before the week of the expected delivery date. In addition to maternity leave, for nine months after childbirth, a female employee is entitled to take one hour off for breastfeeding or for the increased needs of child-raising (either suspend work for an hour or come into work later or leave earlier by an hour each day). In accordance with the law, that time must be considered and paid as normal working time.

In the event of an infant’s hospitalisation following delivery, either due to premature birth requiring an incubator, or another health issue, additional maternity leave of one week for every 21 days that the infant requires hospitalisation is granted. The beneficiary must provide a certificate from a registered physician of the appropriate specialty and a certificate from the hospital where the infant is hospitalised to receive this additional leave.

If further hospitalisation after the first 21 days is required, and this exceeds another 11 days’ hospitalisation, an additional week of maternity leave will be granted. Additionally, if hospitalisation continues beyond 63 days, an extra week of maternity leave will be granted for every 14 days of hospitalisation.

The extended maternity leave is granted for a continuous period, of either 22 weeks or 26 weeks, depending on the case. It increases by four weeks for each additional child born from the same delivery and may not exceed a maximum of eight weeks. Whether the above is paid or unpaid by the employer is a contractual matter. If there is no provision in the contract of employment (or collective agreement), a maternity allowance is in any case payable by the Social Insurance Fund.

Paternity Leave

An employee who has a child either through natural maternity or by surrogacy or by the adoption of a child up to 12 years old, has the right to paternity leave of two continuous weeks. The leave can be taken during the period that starts from the week of the childbirth or adoption and ends two weeks after the end of the maternity leave.

Whether the above is paid or unpaid by the employer is a contractual matter. If there is no provision in the contract of employment (or collective agreement), a paternity allowance is in any case payable by the Social Insurance Fund.

Parental Leave

Employees who have completed six months or more of continuous employment with the same employer can claim parental leave for up to 18 weeks in total, for each child, on the grounds of childbirth or adoption, for the purpose of caring for and bringing up the child. In the case of a widow/widower or single parent, parental leave may be extended to 23 weeks and this may be taken at any time until the completion of the eighth year of the child’s life (with slight differences for adoptive children) and up to the 18th year of age of the child, in the case of children with disabilities. Parental leave may be taken over a minimum of one day and a maximum of five weeks per calendar year.

Whether the above is paid or unpaid by the employer is a contractual matter. If there is no provision in the contract of employment (or collective agreement), parental allowance is in any case payable by the Social Insurance Fund, provided that the parent:

• has worked for at least 12 months during the preceding 24 months;
• has completed six months of continuous employment with the same employer; and
• does not receive full pay from the employer.

Force Majeure

The employee is entitled to seven days’ leave per year without pay on the grounds of a force majeure. These grounds must relate to urgent family reasons in the case of sickness or accident to a member of the employee’s family, which requires the immediate presence of the employee.

Carer’s Leave

The employee may take unpaid carer’s leave of up to five days per year, in order to provide personal care or support to a relative or a person that resides in the same household who needs significant care or support due to a serious medical reason. The employee must notify the employer in due time and provide the relevant medical certificate substantiating the need for such leave.

Flexible Work Arrangements

Parents of children up to eight years old, and carers, have the right to request flexible work arrangements, such as remote work and reduced or flexible working hours, provided that they have worked continuously for the same employer for at least six months. In the case of short-term fixed-term contracts, they can all be taken into account in the calculation of six months. The employer must consider such request and reply to the employee in writing within a month. The employer may take into account both their needs and the needs of the employee and may approve the request and agree with the employee over the period in which these arrangements will apply, or postpone implementation of such flexible work arrangements, or reject the request. However, before any postponement or rejection, the employer must consider the representations of the employee and notify the employee in writing of the decision, justifying the grounds of postponement or rejection.

Confidentiality

There is an implicit duty of confidentiality on employees which arises from common law and can be further regulated by contract. The duty of confidentiality may implicitly and contractually extend beyond the term of the employment relationship, unless the disclosed information has come to the public domain by other means and without the input or fault or unlawful action of the employee. Employers can pursue their rights and claim damages through civil action for breach of confidence.

Statutory trade secrets law also protects employers against the unlawful obtainment, use and disclosure of trade secrets (including by action against the employees). There are exceptions where the employee’s use of this information falls within their rights to expression and information (including respect to freedom of mass media), in case of an offence or tortious behaviour or illegal activity committed by the employer (provided that the employee acted for the protection of the general public interest), or where it was mandated in the course of a lawful exercise of duties according to EU or Cypriot law (ie, where disclosure was necessary for the exercise of such duties), or where the disclosure was for the protection of recognised lawful interests under EU or Cypriot law.

Non-disparagement

There is no explicit duty of non-disparagement, but this may be regulated contractually, as well as dealt with through defamation/libel actions.

Under Cypriot law, employees owe an implied duty of loyalty and fidelity to their employer. Employees should offer their services in a trustworthy and faithful manner.

Notwithstanding the above, the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023) introduced provisions regarding parallel work, which state that the employer is not allowed to prohibit an employee from undertaking work for other employers, outside of the working hours specified in the contract or employment relationship with said employer, or demonstrate adverse treatment to an employee for this reason. The employer may limit parallel employment by specifying in writing the objective reasons for imposing the limitation. The nature of the objective reasons must be related to issues of safety and health, the protection of business confidentiality, the integrity of the public sector and the avoidance of a conflict of interest.

Regarding post-termination restrictions on competition, the position under Cypriot law is as follows.

Under Section 27 of the Cypriot Contracts Law – Cap 149 (“Cap 149”), any agreement which restricts the freedom to conduct a legitimate profession, trade or business is void unless it falls within the following exceptions:

• a person who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, as long as the buyer or any person deriving title to the goodwill from them carries on a like business therein, provided that such limits appear reasonable to the court, regard being had to the nature of the business;
• partners may, upon or in anticipation of the dissolution of a partnership, agree that some or all of them will not carry on a business similar to that of the partnership within such local limits as referred to in the preceding bullet point; and
• partners may agree that one or all of them will not carry on any business, other than that of the partnership, during the continuance of the partnership.

Given the above, post-termination restrictive covenants in employment contracts are, in most instances, considered to be an unlawful restraint from exercising a lawful profession, trade or business, and to that extent they are declared void and unenforceable.

Case law in Cyprus is relatively scarce on this topic, and it is not possible to fully anticipate how a Cypriot court would assess the circumstances surrounding post-termination, non-competition covenants. However, Section 2 of Cap 149, as amended, provides that Cap 149 should be interpreted in accordance with the principles of legal interpretation in England, and expressions used in it will be presumed to be used with the meaning attached to them under English law, in so far as such interpretation does not contradict the content of the text, and provided that no other meaning is expressly intended.

There were instances where English courts ruled that, under the particular circumstances, post-termination restrictive covenants with limited duration and within very limited geographical borders were reasonable and enforceable. Therefore, it may be assumed that a Cypriot court could possibly determine such a clause enforceable in some instances, but the limitations have to appear reasonable under the circumstances. In examining the reasonableness of a restrictive covenant, the court will take into consideration all the circumstances of the specific case, particularly the geographical area, duration, level of importance of the position of the employee and access to information, and type of restriction.

Despite the above, it is more likely that a Cypriot court would find that the provisions of Section 27 of Cap 149 expressly intend to consider such clauses as void, given the wording of the clause, which directly contradicts the legal interpretation of the matter in England.

Concerning independent consideration, note that for any agreement to constitute a contract, lawful consideration is necessary. Such consideration may consist either of some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility to be given, suffered or undertaken by the other. If the restrictive covenant is a clause in the employment contract, anything that forms the consideration for the entire contract may also form a consideration for the restrictive covenant. If, however, the restrictive covenant is a separate agreement, the separate agreement will also require consideration, but normally, the employment itself constitutes the consideration for such restrictions.

See 2.1 Non-competes. Furthermore, there are professional bodies that regulate non-solicit provisions through internal rules or codes of conduct. For example, the Cyprus Bar Association prohibits advocates from negotiating or soliciting, directly or indirectly with a colleague’s client, unless they have the written authorisation or consent of such colleague.

Consent

The processing of the personal data of an employee by an employer is permitted without the need to obtain consent, provided that the processing is necessary for the performance of the employment contract, or in order to take steps at the request of the employee prior to entering into the contract, and/or for compliance with legal obligations to which the employer is subject.

Special Categories of Personal Data

Special categories of personal data (sensitive data) may also be processed, where processing is necessary for the purposes of carrying out the obligations and exercising the specific rights of the employer or of the employee in the field of employment and social security and social protection law. Such processing is permitted in so far as it is authorised by domestic law or collective agreement pursuant to domestic law, and it provides appropriate safeguards for the fundamental rights and interests of the employee.

Employer Obligations

Employers are obliged to inform employees (via a privacy policy, or via internal circulars or any other document) of:

• the identity and contact details of the employer and, where applicable, of the employer’s representative;
• the contact details of the data protection officer, where applicable;
• the purposes of the processing for which the personal data is intended, as well as the legal basis for the processing; and
• the recipients or categories of recipients of the personal data, if any.

There are also specific rules on data transfers to third countries.

In addition, the employer must, at the time when the personal data is obtained, provide the employees with the following further information necessary to ensure fair and transparent processing:

• the period for which the personal data will be stored, or if that is not possible, the criteria used to determine that period;
• the existence of the right to request from the employer access to and rectification or erasure of personal data, or restriction of processing concerning the employee, or to object to processing as well as the right to data portability;
• the existence of the right to withdraw consent at any time, without affecting the lawfulness of processing based on consent before its withdrawal;
• the right to lodge a complaint with a supervisory authority;
• whether the provision of personal data is a statutory or contractual requirement, or a requirement necessary to enter into a contract, as well as whether the employee is obliged to provide the personal data and the possible consequences of failure to provide such data; and
• the existence of automated decision-making, including profiling, and, at least in those cases, meaningful information about the reasoning involved, as well as the significance and the envisaged consequences of such processing for the employee.

Where the employer intends to further process the personal data for a purpose other than that for which the personal data was collected, the employer must provide the employee, prior to that further processing, with information on that other purpose and with any further relevant information. It is also noted that a record of processing activities needs to be maintained in the offices of the employer.

Employee Monitoring

The Cyprus Commissioner for Personal Data Protection issued a Directive on the Processing of Personal Data in the context of Employment Relationships which covers any employee monitoring, such as monitoring of faxes and emails, web browser history, recording of inbound and outbound calls (frequency, duration, time), CCTV and GPS monitoring. In particular, the following principles must be adhered to in instances of surveillance and monitoring of employees:

• the employer may install electronic surveillance systems at the workplace for legitimate purposes which the employer pursues, provided that these purposes supersede the rights, interests and fundamental freedoms of the employees (it is noted, however, that recording sound, ie, conversations, through a CCTV system is considered as extreme intervention in private life and, in principle, is forbidden in all cases);
• the means/monitoring systems that the employer chooses to install and the data collected, must be proportionate to the objective pursued;
• the employer must choose the least interventionist means of monitoring in order to satisfy the pursued aims;
• the personal data of the employees collected in the course of monitoring will be used only for the purpose for which the monitoring is carried out;
• the personal data of the employees collected in the course of monitoring will be destroyed/deleted once the purpose for which the monitoring is carried out has been fulfilled;
• the employer must in all instances inform the employees, before the monitoring begins, of the purpose, method, duration and the technical specifications of the surveillance;
• continuous monitoring in the workplace must be avoided;
• the use of biometric systems (ie, facial recognition or fingerprinting) by employers for the purposes of validating the time of arrival and departure of employees in the workplace, is prohibited (the employer ought to use less interventionist measures, such as swiping a card);
• secret surveillance is prohibited;
• the employer may choose to prohibit employees from using the equipment of the company/organisation for personal purposes such as sending emails or making outbound telephone calls;
• the employer must inform the employees of how they can use the equipment of the company/organisation, the electronic surveillance methods which will be used and the consequences for employees resulting from the use of such equipment for personal purposes;

• the access of the employer to the content of the personal emails and personal telephone calls of employees is prohibited; and
• employees maintain the right to protection of their private life even in the workplace.

The employers must maintain the balance between this right and the degree to which the surveillance systems interfere with the private life of employees. Additionally, for each type of processing activity that may possibly pose a high risk to the rights and freedoms of employees (especially with the use of new technologies), employers are legally obliged to carry out a Data Protection Impact Assessment (DPIA) for the purposes of examining and evaluating the implications of the intended processing activities.

Finally, the protection of data and privacy of employees is also safeguarded by Article 15 of the Constitution (right to respect for private and family life), Article 17 of the Constitution (right to respect for and to secrecy of correspondence and other communication, if such other communication is made through means not prohibited by law) and all international instruments to which Cyprus is a party that guarantee the right to privacy, such as the European Convention on Human Rights, the EU Charter of Fundamental Rights and pertinent ILO Conventions, as well as ECJ/CJEU and ECtHR jurisprudence.

The maximum period of stay for all third-country nationals for the purposes of employment is four years, except for the livestock farming and agricultural sectors, where the maximum period has been set at six years. This limitation does not apply in certain cases, such as personnel employed in “companies of foreign interests” (as these are defined under the applicable decisions of the Council of Ministers) and/or in economic sectors of priority, such as academic, R&D, software, biotechnology, pharmaceuticals, etc.

EU/EEA/Swiss nationals may work in the Republic of Cyprus, provided that they comply with a relatively simple and straightforward registration procedure, without any further restrictions. However, non-EU/EEA/Swiss nationals are required to obtain a residence permit with the right to work, prior to any employment in Cyprus.

Labour Market Test

The main precondition for the granting of a permit for the employment of third-country workers, is the inability of the employer to satisfy the needs of its business with local workers (Cypriot or EU/EEA/Swiss nationals). This inability will be ascertained following a “labour market test” conducted by the competent Department of Labour of the Ministry of Labour, Welfare and Social Insurance. Where the annual gross salary of the third-country worker exceeds EUR35,000, no such test is required. The applications for the permit of the non-EU/EEA/Swiss national are submitted to the District Labour Offices, which need to confirm that the criteria for employment of foreigners are being met. Moreover, the interested employer is required to publish the available position via the employment services of the District Labour Offices (where the annual gross salary does not exceed EUR35,000). If there are no Cypriot or EU/EEA/Swiss citizens available and capable of filling the specific positions after two weeks of advertising the available position, the employer submits a special application form for the employment of foreign workers. Once the application is approved and the employment contract stamped, application is then made for the issuance of the pertinent residence permit to the Civil Registry and Migration Department.

Employees in “companies of foreign interests” undergo a much simpler procedure that does not require any application to the Department of Labour, but only to the Civil Registry and Migration Department. The employer is entitled to employ such individuals, under certain conditions, for indefinitely renewable three-year periods. It is noted that after five years of continuous lawful residence the employees have the right to apply for a Long-Term Residence permit and, after seven years of continuous lawful residence, citizenship, under certain conditions. At least 30% of a workforce need to be Cypriot or EU/EEA/Swiss citizens, while foreign labour can be up to 70%.

Family Reunification

Family members and dependants of Cypriots or EU/EEA/Swiss citizens, who are not Cypriots or EU/EEA/Swiss citizens themselves, generally enjoy the same rights as the Cypriot or EU/EEA/Swiss citizens, but in order to work, they need a residence permit with the right to work. Third-country nationals who reside legally within the areas controlled by the government of the Republic of Cyprus for at least two years, who are holders of a residence permit valid for at least one year, and who have reasonable prospects of obtaining the right of permanent residence, can apply for family reunification.

Spouses or civil partners of more than one year, and dependents, of third-country nationals who are employees in “companies of foreign interests” have immediate right to reunification – spouses or civil partners also have immediate right to work, not only reside, in these cases.

The terms and conditions of employment must be the same for all individuals, whether they are foreign or Cypriot nationals.

See 4.1 Limitations on Foreign Workers.

On 1 December 2023, the Regulation of the Organizational Framework of Telework Law of 2023 (Law 120(I)/2023) came into force. While Law 120(I)/2023 states that telework is optional and is agreed in writing between the employer and the employee, either upon hiring or by amending the employment contract or by collective agreement, if telework is part of the employment relationship then the provisions of Law 120(I)/2023 are obligatory and must be followed.

Law 120(I)/2023 expressly states that it is prohibited to discriminate against an employee because they do not consent to telework. It also safeguards that the employment status and/or the employment contract of the employee remain unaffected by the alternation in the mode of work.

Further to the information mentioned in 2.1 Non-competes, the employer has the obligation, within eight days from the starting date of the telework, to inform the employee in writing about any changes to the working conditions due to the telework, and this information must include at least the following:

• reference to –
1. the right of remote workers to disconnect from the electronic means through which they provide their services remotely using technology;
2. the technical and organisational measures taken to ensure the disconnection of the remote workers from the digital communication and work tools; and
3. prohibition of discrimination against remote workers simply because of exercising their right to disconnect;
• analysis of the costs of remote work, including costs of telecommunications, equipment, and maintenance;
• the necessary equipment and whether the employee will buy it and ask for reimbursement from the employer, or if the employer will provide the equipment, technical support, maintenance and repairs;
• any restrictions on the use of equipment and possible sanctions in the case of breach;
• any possible agreement on remote work readiness, including timeframes and deadlines by which remote workers must respond;
• risks and measures of protection and prevention on the basis of the written risk assessment;
• an obligation to protect and secure business data and personal data, and the actions and procedures that need to be followed to fulfil this obligation; and
• the supervisor from whom the remote workers will get instructions.

Furthermore, the employer must evaluate the employee’s performance in a way that respects the employee’s privacy and protects the employee’s personal data. Moreover, before implementing systems, technologies, applications, measures or tools, for supervision, time control or evaluation of the performance, effectiveness and efficiency of the employee, the employer must carry out the data protection impact assessment provided for in the provisions of Article 35 of Regulation (EU) 2016/ 679, and proceed with the process of prior consultation with the Personal Data Protection Commissioner in accordance with the provisions of Article 36 of Regulation (EU) 2016/679.

Finally, Law 120(I)/2023 expressly prohibits monitoring employees using a camera or other similar intrusive application to control the performance of the employee.

Any violation by the employer of the provisions of Law 120(I)/2023 constitutes an offence punishable by a fine of up to EUR10,000.

There is no entitlement to sabbatical leave in Cyprus, unless provided for by individual or collective agreement or employer practice or custom. The only regulated forms of leave are annual paid leave, maternity leave, paternity leave, sick leave, parental leave, carer’s leave, and leave on the grounds of force majeure, explained in 1.5 Other Employment Terms, and military leave for military exercises, where an employee is a reserve soldier.

Aside from remote work, which has picked up widely regardless of the size of the business, the other forms of “new work” that have appeared are desk-sharing and four-day weeks, but these are mostly confined to larger enterprises and, at this stage, it is difficult to deduce more general comments or rules.

Article 21 of the Constitution of the Republic of Cyprus protects the right of association, including specifically the right to establish and join a trade union.

Cyprus has a relatively high level of trade union organisation. The main national, multi-sectoral workers’ organisations are the Pancyprian Federation of Labour (“PEO”), the Cyprus Workers Confederation (“SEK”), the Democratic Labour Federation of Cyprus (“DEOK”) and the Pancyprian Federation of Independent Trade Unions (“POAS”).

Other independent sectoral workers’ organisations are the Pancyprian Union of Public Servants (“PASYDY”), the Pancyprian Organisation of Greek Teachers (“POED”), the Organisation of Greek Secondary Education Teachers (“OELMEK”) and the Union of Banking Employees of Cyprus (“ETYK”).

Trade unions have the right to possess property under their legally registered name, to contract, to appear before the courts either as a plaintiff or as a defendant, and also to proceed with all necessary actions to accomplish their purposes. However, to enjoy these rights, a trade union has to be legally registered as such.

Union elections take place in accordance with the unions’ articles of association and relevant rules.

Where a registered trade union wishes to be recognised by the employer for the purposes of negotiating the conclusion of a collective agreement, but the employer refuses to recognise it, the trade union may apply, under certain conditions, to the Registrar of Trade Unions for issuance of an order of recognition, forcing the employer to recognise it as the lawful representative of the employees for said purposes.

In cases of undertakings employing at least 30 employees, a company has a general obligation to inform the employees and/or their representatives and consult them by exchanging views and establishing a dialogue between the employees and/or employee representatives and the employer. In particular, such information and consultation should cover:

• information on the recent and probable development of the undertaking’s or the establishment’s activities and economic situation;
• information and consultation on the situation, structure and probable development of employment within the undertaking or establishment, and on any anticipatory measures envisaged, in particular where there is a threat to employment; and
• information and consultation on decisions likely to lead to substantial changes in work organisation or contractual relations.

Failure to comply with the Establishment of a General Framework for Information and Consultation of Employees Law of 2005 (Law 78(I)/2005) may lead to criminal prosecution and the imposition of a fine.

Cypriot law also provides for the establishment of European Works Councils for the purpose of safeguarding and improving employees’ rights to information and consultation in EU-scale undertakings and EU-scale groups of undertakings. However, at the time of writing, there were no active European Works Councils in Cyprus.

See 6.1 Unions.

In relation to collective bargaining agreements (CBAs), there is no general legislative framework regulating the manner in which they are conducted, nor is there a list of core terms that need to be contained therein (other than, of course, minimum statutory obligations). CBAs constitute one of the main policy instruments used to shape labour policy in Cyprus and, as a matter of practice, the negotiations are conducted in a tripartite manner between the employers’ organisations, the Ministry of Labour and Social Insurance, and the trade unions. CBAs in Cyprus do not have erga omnes effect, nor are they legally binding; therefore, non-compliance per se may not be the subject of a judicial process, even though the provisions of applicable CBAs in any given case, together with any other existing practices concerning terms and conditions of employment, are taken into consideration by Cypriot courts as evidence of such terms and conditions. CBAs are only subject to the provisions of the 1977 Industrial Relations Code, which is not legally enforceable but rather a “gentlemen’s agreement” between the main employers’ associations and trade unions. It lays down the procedures to be followed for the settlement of employment disputes, arbitration, mediation and public inquiry in disagreements over interests and rights.

There is a default statutory probation period for the first 26 weeks of employment – probation can be extended past six months up to a maximum of 104 weeks with the consent of both parties only in cases of directors, executives, managers and persons in similar positions. Throughout the duration of the probationary period, the statutory provisions relating to notice and protection from termination of employment do not apply, and the employee may be dismissed for any reason and without notice, save where more favourable provisions for the employee are stipulated within the contract of employment.

After the lapse of the probationary period, employees are protected from dismissals. More specifically, a dismissal that cannot be justified under any one of the grounds below is considered unlawful per se:

• unsatisfactory performance (excluding temporary incapacity owing to illness, injury or childbirth);
• redundancy;
• force majeure, act of war, civil commotion or act of God;
• termination at the end of a fixed period;
• conduct rendering the employee subject to summary dismissal;
• conduct making it clear that the relationship between the employer and employee cannot reasonably be expected to continue; and
• committing a serious disciplinary or criminal offence, indecent behaviour, or repeated violation or ignoring of employment rules.

Concerning dismissals due to redundancy, the following circumstances constitute specifically lawful grounds for dismissal due to redundancy:

• the employer has ceased to carry on the business that employs the employee;
• the employer has ceased to carry on the business at the place where the employee was employed; or
• due to any of the following grounds relating to the operation of the business:
1. modernisation, automation or any other change in the methods of production or organisation which reduces the number of required employees;
2. changes in the products or the production methods or the necessary expertise of the employees;
3. abolition of departments;
4. difficulties in placing products on the market or credit difficulties;
5. lack of orders or raw materials;
6. shortage of means of production; or
7. reduction of the volume of work or the business.

Further, an employer may never lawfully terminate the employment agreement for any of the following reasons:

• membership in trade unions or a safety committee established under the Safety at Work Law of 1988;
• activity as an employees’ representative;
• filing a complaint in good faith;
• reporting certain types of violations of EU and/or national law (whistle-blowing); or
• participation in proceedings against an employer involving an alleged violation of laws or regulations, civil or criminal.

There is a rebuttable presumption, however, that any dismissal is unlawful until the employer proves the contrary on the balance of probabilities.

Further, an employer must always give the employee a written notice of termination, outlining the grounds for dismissal, with the applicable notice period or payment in lieu of notice.

The notice period is calculated on a graduated scale, according to length of prior service (see 7.2 Notice Periods).

However, where the grounds of termination are either conduct rendering the employee subject to summary dismissal, or conduct making it clear that the relationship between the employer and employee cannot reasonably be expected to continue, or committing a serious disciplinary or criminal offence, indecent behaviour, or repeated violation or ignoring of employment rules, no notice period is applicable and the employee may be terminated with immediate effect.

In addition, in cases of foreseeable dismissals due to redundancy, the employer is obliged to notify the minister of labour and social insurance at least one month in advance before the anticipated date of termination, including the number of possible redundant employees, the affected sector of the business, the professions and, where possible, the names and family obligations of the affected employees, and the grounds for redundancy. The notice is given by the filing of an official template form (Form YKA 608) with the Social Insurance Services.

Employers who intend to proceed with a collective dismissal due to redundancy are additionally obliged to consult in due time with the workers’ representatives to reach an agreement. The employer must notify the minister of labour and social insurance in writing of any intended collective redundancies as soon as possible. Any intended collective redundancies which have been notified to the minister of labour and social insurance will be valid only after the expiry of the period of 30 days accruing from the day of the provision of such a notification.

For the purposes of collective redundancy legislation, the term “collective redundancies” means redundancies made by an employer for one or more reasons not connected with the employees, provided that the number of employees dismissed within a period of 30 days is:

• at least ten, in undertakings which normally employ more than 20 and fewer than 100 employees;
• at least 10% of the number of employees in undertakings that normally employ at least 100 and fewer than 300 employees; and
• at least 30, in undertakings that normally employ at least 300 employees.

The consultations should, at least, cover the following:

• ways and means of avoiding collective redundancies or reducing the number of employees to be affected and of mitigating the consequences of collective redundancies; and
• the employer must supply, in good time, the employees’ representatives with all relevant information to enable them to make proposals during the consultations – the employer has to give in writing, inter alia, the following information:

(a) the reasons for the planned redundancies;

(b) the names and occupations of the employees to be made redundant;

(c) the names and categories of employees normally employed by the employer;

(d) the period over which the redundancies are to be effected;

(e) the criteria to be used for selecting the employees to be made redundant; and

(f) the method of calculating any redundancy payments to the affected employees.

If the termination due to redundancy is genuine, then the employee(s) will receive payment from the state-administered Redundancy Fund (to which all employers contribute) according to their length of service, as mentioned below, provided that the employee(s) has/have completed 104 weeks’ continuous employment with the same employer. In particular, the redundancy pay is calculated as follows:

• two weeks’ wages for each year of service up to four years;
• two-and-a-half weeks’ wages for each year of service from five to ten years;
• three weeks’ wages for each year of service from 11 to 15 years;
• three-and-a-half weeks’ wages for each year of service from 16 to 20 years; and
• four weeks’ wages for each year of service beyond 20 years.

The minister of labour and social insurance imposes a maximum compensation per week by decree.

If an employee is simultaneously entitled to payment out of the Redundancy Fund and payment from the employer by reason of custom, law, collective agreement, contract or otherwise, the employee is paid the whole amount from the Redundancy Fund, and the employer pays any difference between the two payments, if the total amount of payment from the employer is higher than the amount received from the Fund.

In the event that the application for payment from the Redundancy Fund is rejected because the grounds for redundancy were deemed not genuine, the employee has the right to take action against the Fund, as well as against the employer in the alternative, for unfair dismissal and to seek damages.

Finally, concerning internal and appeal procedures, there is no obligation for the employer in the private sector to follow internal disciplinary rules in the private sector (unless the employment contract provides otherwise). However, disciplinary procedures are required regarding employees of government and semi-government bodies or organisations. Nevertheless, even without internal disciplinary procedures, according to case law, dismissal of an employee should always be necessary and reasonable, and must be treated as an employer’s “last resort”. Given this, before dismissing an employee, the employer should bring to the employee’s attention any complaints regarding their efficiency or unsatisfactory conduct or behaviour, and the employer should warn the employee accordingly, to give them the chance to express their views and improve.

Notice

The minimum statutory notice which the employer has to give to the employee varies according to the employee’s period of continuous employment as follows:

• zero days for up to 26 continuous weeks’ employment;
• one week for 26–52 continuous weeks’ employment;
• two weeks for 52–104 continuous weeks’ employment;
• three weeks for 104–156 continuous weeks’ employment;
• five weeks for 156–208 continuous weeks’ employment;
• six weeks for 208–260 continuous weeks’ employment;
• seven weeks for 260–312 continuous weeks’ employment; and
• eight weeks for 312 continuous weeks’ employment or more.

A dismissal without notice or payment in lieu of notice can take place only when: (a) the employee’s conduct indicates that the relationship between the employer and employee cannot reasonably be expected to continue under the circumstances; (b) the employee committed a serious disciplinary or criminal offence; (c) the employee behaved indecently; or (d) the employee repeatedly violated or ignored employment rules.

An employee who intends to resign should give the employer a minimum period of notice depending on the period of prior service as follows:

• zero days for up to 26 continuous weeks’ employment;
• one week for 26–52 continuous weeks’ employment;
• two weeks for 52–260 continuous weeks’ employment; and
• three weeks for 260 continuous weeks’ employment or more.

Severance

Minimum statutory compensation for unlawful dismissal payable by the employer depends upon the period of continuous employment and is calculated in the same way as the compensation for redundancy (see 7.1 Grounds for Termination). The Industrial Disputes Court will also take into account, at its discretion, the wages and earnings of the employee, length of service, loss of career, circumstances of the termination of employment and the age of the employee.

It is noted that the compensation to which the employee is entitled cannot exceed the equivalent of two years’ wages and is payable by the employer in so far as it does not exceed the employee’s annual wages, and from the Redundancy Fund to the extent that such compensation exceeds the employee’s annual wages. The employer is thus exposed to the payment of damages up to a maximum of one year’s wages.

As stated in 7.1 Grounds for Termination, the employee is not entitled to any compensation from the employer when the dismissal takes place for any of the following reasons:

• unsatisfactory performance (excluding temporary incapacity owing to illness, injury or childbirth);
• redundancy;
• force majeure, act of war, civil commotion or act of God;
• termination at the end of a fixed period;
• conduct rendering the employee subject to summary dismissal;
• conduct making it clear that the relationship between the employer and employee cannot reasonably be expected to continue; and
• committing a serious disciplinary or criminal offence, indecent behaviour, or repeated violation or ignoring of employment rules.

Of course, it is possible for the employer to still pay severance at its discretion or if pre-agreed contractually.

There is no precise definition of “serious cause”, but the following serious causes constitute lawful grounds of dismissal without notice and without compensation, as outlined earlier:

• conduct rendering the employee subject to summary dismissal (which may be connected to committing theft, fraud, damage to company property, serious breach of health and safety regulations, violence, discrimination or harassment against another employee);
• conduct making it clear that the relationship between the employer and employee cannot reasonably be expected to continue; and
• committing a serious disciplinary or criminal offence, indecent behaviour, or repeated violation or ignoring of employment rules.

Only a letter of termination outlining the circumstances/facts that led to this decision to terminate is required to be given to the employee.

However, prior disciplinary procedures or otherwise giving the employee the opportunity to respond would constitute best practice and would be looked at favourably by the court, in the case of a labour dispute. Any prior opportunity given to the employee to be heard would also safeguard the employee’s constitutional right to a prior hearing.

Under Cypriot law, it is permissible to obtain releases in connection with termination agreements, but case law suggests that the right to bring a claim can be waived only if such a waiver is clear and unequivocal. In addition, consideration would be necessary for a termination agreement to be valid and enforceable per se.

There are no specific procedures, formalities or specific statutory requirements, however, and termination agreements would therefore be the subject of negotiation between the parties to the employment relationship.

No other limitations are applicable.

On Maternity Leave

In the case of maternity, there is an express protection from dismissal ranging from the start of the pregnancy until five months after the end of the maternity leave. During said period, the employer is not allowed to give any notice of termination or proceed with other actions aimed at the final dismissal of said employee, unless they are guilty of serious misconduct or the business has closed down or the contractual period of employment has ended (apart from instances where non-renewal of the contract relates to the pregnancy, childbirth or maternity leave).

On Paternity Leave

In the case of paternity, there is a statutory protection from termination of employment or granting notice of termination during the period commencing from the date of written notice by the employee of the intention to exercise the right to paternity leave and expiring at the end of the paternity leave (except in cases of serious offence/misconduct or behaviour which warrants the termination of the employment relationship, or where the undertaking concerned ceased operations, or the termination of a fixed-term contract).

On Parental Leave or Leave on Grounds of Force Majeure

There is statutory protection from dismissal in the case of parental leave or leave on grounds of force majeure, except if the employee is guilty of a serious offence or misconduct, or the undertaking has ceased operations, or the employment contract duration has expired.

On Sickness Leave

In the case of an employee being absent from work on sick leave due to incapacity, during the period of absence plus one quarter of that period upon return (but up to a maximum of 12 months’ absence plus one quarter – ie, 15 months), they may be served a notice of termination only on the following grounds:

• conduct rendering the employee subject to summary dismissal; or
• conduct making it clear that the relationship between the employer and employee cannot reasonably be expected to continue, committing a serious disciplinary or criminal offence, indecent behaviour, or repeated violation or ignoring of employment rules.

Whistle-Blowers

The Protection of Persons Who Report Violations of Union and National Law of 2022 (Law 6(I)/2022) requires all private legal entities with 50 or more employees and all public sector legal entities (except local authorities with fewer than 5,000 inhabitants or fewer than 25 employees) to establish reporting channels and procedures for internal reporting and for monitoring. The protection explicitly covers reports on infringements within the scope of EU law, including public procurement, financial services, products and markets and the prevention of money laundering and terrorist financing, product safety and compliance, transport security, environmental protection, radiation protection and nuclear safety, food and feed safety, health and animal welfare, public health, consumer protection, privacy and protection of personal data and the security of network and information systems, infringements affecting the economic interests of the EU, and internal market-related infringements. The same law provides prohibition of any form of retaliation, criminal sanctions, and a number of causes of action.

In addition to the new legislation, whistle-blowers are also protected by their constitutional right to freedom of expression and right of access to the courts. Of course, as also noted earlier, there is an exhaustive list of lawful grounds of dismissal, and dismissal on any other grounds is considered unlawful per se.

Anti-discrimination

Anti-discrimination legislation provides for certain protected characteristics, which include gender, community, language, colour, religion, political or other beliefs, age, sexual orientation, nationality, racial or ethnic origin, and disability (see 8.2 Anti-discrimination).

Protected categories include both private and public sector employees.

Other

Any dismissal premised on any of the following grounds is considered unlawful per se: (a) trade union membership; or (b) membership of a safety committee under the Safety at Work legislation; or (c) submission of a complaint or participation in proceedings against an employer because the latter is involved in alleged violation of laws or regulations, or (d) recourse to a competent administrative authority.

The most common remedy available for unlawful dismissal is a claim for damages. A dismissed employee can bring a claim for damages for unlawful or wrongful dismissal at the Industrial Disputes Court which has exclusive jurisdiction to determine matters arising from the contract of employment and its termination. Minimum statutory compensation for unlawful dismissal payable by the employer depends upon the period of continuous employment and is calculated in the same way as the compensation for redundancy (see 7.1 Grounds for Termination/Redundancy). The maximum amount of compensation the Industrial Disputes Court is entitled to award is two years of the claimant’s salary.

Depending on the circumstances of the case, the court may award any amount between the minimum (calculated in the same way as the compensation for redundancy) and the maximum (two years’ wages). Before deciding, the court considers an employee’s age, family situation, (loss of) career prospects and all the circumstances of termination. In a case where the maximum amount is awarded, any payment in excess of one year’s wages is payable to the employee by the state-administered Redundancy Fund and not by the employer.

Alternatively, an employee has the right to file a claim for breach of contract at the District Courts, if the claim exceeds the equivalent of two years’ salary (which is the maximum amount of compensation that can be ordered by the Industrial Disputes Court).

In addition, an employee who was illegally dismissed is entitled to payment in lieu of notice, if notice was not given, which is calculated on the basis of the scale mentioned in 7.2 Notice Periods/Severance.

In cases of unlawful dismissal, and provided that the employer’s total staff exceeds 19 persons, the court is further empowered to order the employer to redeploy the employee. However, this discretionary power is very rarely exercised.

Cyprus has a multitude of anti-discrimination laws dealing with different forms of discrimination in different sectors; there is no single comprehensive equality statute. The ultimate protection from discrimination derives from Article 28 of the Constitution of the Republic of Cyprus which states that everyone will enjoy the rights and freedoms provided for in the constitution without any direct or indirect discrimination against any person on account of community, race, colour, religion, language, sex, political or other opinion, of national or social origin, birth, wealth, social class, or for any other reason, unless the contrary is determined by an express provision of the constitution. Law 42(I)/2004 and Law 58(I)/2004, which have some overlapping provisions, prohibit any direct or indirect discriminatory treatment or conduct, provision, term, criteria or practice in both private and public sector activities on the grounds of race, community, language, colour, disability, religion, political or other beliefs, national or ethnic origin, or sexual orientation. The protection extends as regards to:

• access to employment, self-employment and work, including selection criteria and appointment terms, regardless of sector of activity at all levels of the professional hierarchy, including promotions;
• access to all kinds and levels of professional orientation, training, education and re-orientation, including obtaining practical professional experience;
• conditions and terms of employment, including provisions on dismissals and remuneration;
• capacity of a member and participation in an employees’ or employers’ organisation or any organisation where the members exercise a particular profession, including advantages granted by such organisations; and
• social protection, social security and healthcare.

Law 177(I)/2002 and Law 205(I)/2002 prohibit discrimination in the public and private sectors on the basis of gender, including in relation to terms and conditions of remuneration for the same work or work of equal value; ensure equal criteria for men and women; and conditions of employment or access to employment. They provide further protection during maternity, protection from harassment, and ensure active participation and representation. There are certain exceptions under these laws pertaining to residency requirements of third-country nationals and stateless persons, or objectively justified discrimination on certain grounds of religion or age, and affirmative action. They also include pertinent administrative sanctions, criminal sanctions on perpetrators, enforcement mechanisms and whistle-blower protection.

There are additional anti-discrimination laws pertaining to the discriminatory treatment of fixed-term employees vis-à-vis employees of indefinite duration, full-time vis-à-vis part-time employees, persons with disabilities, as well as Law 3/1968 ratifying the International Labour Organisation Convention No 111 concerning Discrimination in Respect of Employment and Occupation of 1958.

In relation to potential claims, it is noted that a prima facie discrimination claim shifts the burden of proof onto the employer.

In the event of discrimination being found, employees are entitled to claim:

• compensatory damages;
• any special damages suffered because of the discrimination;
• reinstatement/re-employment; and
• attorney’s fees.

See also 7.1 Grounds for Termination on minimum damages and 8.1 Wrongful Dismissal on said claims.

Employees may pursue administrative proceedings before the Ombudsman, who may impose a fine where they identify discrimination on the grounds of gender, religion or beliefs, age, sexual orientation, or racial or ethnic origin.

According to the provisions of the various statutes protecting employees from direct or indirect discrimination, discriminatory behaviour may also constitute a serious criminal offence punishable with imprisonment and/or a fine.

While Section 36A of the Cypriot Evidence Law, Cap 9 states that the court may, if it deems it in the interest of justice, allow a witness who is outside the republic to give their testimony via video conference, there is no possibility of court proceedings via video in employment disputes, where the witness is in the territory of the Republic of Cyprus. Digitalisation in employment disputes has been confined to the submission of pleadings and affidavits, as well as limited communications between the lawyers and the court or the court registry, under the new electronic justice platform.

The Industrial Disputes Court has exclusive jurisdiction to hear and decide any disputes arising from the application of the law relating to the termination of employment. However, the employee has the right to apply to a district court in relation to a dispute concerning their employment where the claim is greater than the maximum amount that may be ordered by the Industrial Disputes Court (two years’ salary) or for any claim arising during the first 26 weeks of employment (statutory probationary period). Recourse to one court excludes the jurisdiction of the other.

As of 1 July 2023, a third-instance jurisdiction has been added to the Cypriot judicial system – that is, the Industrial Disputes Court or District Court at first instance (as explained above) and the Court of Appeal at second instance, with the Supreme Court at third instance.

There is no provision for class or collective action within the employment statutes and regulations. However, the Civil Procedure Rules provide that, where several persons have the same interest in one cause or matter, one or more of them may be authorised by the court to pursue or defend an action on behalf of, or for the benefit of, all interested persons.

So far, employment claims are filed on an individual basis, and it has not yet been tested whether class or collective actions will be allowed by the relevant provision contained in the Civil Procedure Rules.

In the case of a private dispute between employer and employee that relates to termination of employment, annual paid leave, protection of maternity leave, independent claims arising from the employment contract and similar claims, the Industrial Disputes Court has exclusive jurisdiction (with the exception of district court jurisdiction on dismissals where claims exceed two years’ wages). It follows that an agreement for arbitration on these matters is unenforceable.

In the case of a dispute between an employer and trade union(s), under the Industrial Relations Code, non-binding mediation by the Department of Labour Relations is possible, but the parties’ rights to apply to the court may be reserved. Binding arbitration is also possible where the employer and the trade union(s) agree that the arbitrator’s decision will be binding.

The general rule is that orders as to litigation costs will usually burden the unsuccessful party to the action. Nevertheless, in practice, in the case of the Industrial Disputes Court specifically, there is a possibility that if the application is rejected, the applicant may be burdened only with their own fees and the employer may still be required to pay its own fees.