The applicable legislation on the posting of workers has been transposed in Cyprus through Law n. 63(I)/2017, Law n. 158(I)/2020 and Regulations of 2017 (K.Δ.Π196/2017).
The Legislation is fully harmonized with the Directives 96/71/EC, 2014/67/EU and 2018/957/EU.
More information on EU legislation on posting in our guide on EU Posted Workers Directives.
The role of Directive 2014/67 in the posting of workers to Cyprus
Building upon the foundation laid by Directive 96/71/CE, Dir. 2014/67/EU aims to strengthen enforcement mechanisms and enhance cooperation among EU Member States in the field of posted workers.
In the case of Cyprus, Directive 2014/67/EU reinforces the role of national authorities, empowering them to conduct inspections and impose sanctions on employers who fail to comply with the regulations. By enhancing cooperation between Cyprus and other Member States, this directive facilitates the exchange of information and best practices, fostering a more harmonized approach to the posting of workers within the EU.
Preliminary obligations when posting workers to Cyprus
For the effective application of law, service providers are obliged to submit a series of documents to the Department of Labour, in Greek or in English.
The following documents may be submitted via email, fax or by post office, before the beginning of the posting:
- Written statement with the following information:
- Name of the undertaking, its head office address and its legal status;
- Name of the legal representative and the representative in the territory of Cyprus if such a representative exists;
- Address where posted workers will provide services and name, address and legal status of the undertakings receiving the services;
- Date of beginning of the posting and the possible duration;
- Nature of economic activity.
- List of Posted Workers (full name, passport n., occupation);
- Name of the liaison person with the competent authorities;
- Name of the contact person acting as representative for collective bargaining during the posting;
- A1 Certificates of the posted workers (which must be shared with the Cyprus Social Insurance Services as well).
In case of any change in the above information, the enterprises are obliged to submit an additional statement. The due timing is within 15 days of the change.
Working and salary conditions in Cyprus
Employers must ensure that posted workers benefit from the same minimum employment conditions as local workers in Cyprus. This includes adhering to Cypriot labor laws, collective agreements and industry-specific regulations. Specifically, the terms of employment refer to:
- Remuneration (including minimum wage and overtime rates),
- Annual leaves,
- Maximum working hours and minimum rest periods,
- Health, safety and hygiene at work,
- Allowances or reimbursement of expenditure to cover travel, board and lodging expenses for workers away from home for professional reasons.
The impact of Directive 2018/957 on the posting of workers to Cyprus
Directive 2018/957/EU, the most recent addition to the EU framework on the posting of workers, further strengthens the protection of workers’ rights and addresses emerging challenges in the labor market. This directive focuses on improving the conditions of employment for posted workers, particularly in sectors characterized by temporary or seasonal work.
In Cyprus, Directive 2018/957/EU brings significant changes, especially concerning the duration of postings and the rights of long-term posted workers. Employers are now required to provide additional benefits and entitlements to workers posted for extended periods, ensuring that they are not disadvantaged compared to local employees.
Storage of the posting documents
In Cyprus, the designated location for storing all pertinent documents related to posted workers is the workplace.
Typically, the essential documents include:
- The employment contract (or its equivalent);
- Recent pay slips of the worker posted to Cyprus;
- Timesheets;
- Proof of salary payments;
- A1 forms;
- Certificates of good health or fitness to work.
During inspections, employers are obliged to provide the competent authority with the aforementioned documents in Greek or English.
The timeframe for providing these documents may vary depending on the formal request made by the inspector. Furthermore, these documents must remain accessible in case of any requests from the Labour Inspectorate.
Non-EU citizen workers posted to Cyprus
Generally, third-country nationals holding permits from EU countries are permitted to enter Cyprus. However, additional activities such as engaging in work-related tasks and providing services are prohibited. Specifically, non-EU workers are not authorized to undertake productive activities in Cyprus. They can start working in Cyprus as soon as they possess a designated Cypriot visa or work permit.
Social security
Pursuant the European Regulation 883/2004, posted workers to Cyprus may continue to be covered by the social security of the Member State where the employer is based.
In order to prove that, the posting company must apply for an A1 Certificate. The competent social institution will issue it once it has received all the necessary information.
The A1 Certificate art. 12 can have a maximum duration of 24 months. Furthermore, workers must hold it for the whole period of their posting to Cyprus.
Penalties in case of non-compliance with Cypriot obligations when posting workers
If the competent authority identifies any breach of the provisions stipulated in the aforementioned legislation, a three-member governmental committee retains the authority to levy administrative fines of up to €10,000. In the event of recurrent violations, it retains the discretion to impose administrative fines of up to €20,000.
Additionally, any individual found to have infringed upon or failed to comply with the provisions of the aforementioned legislation is deemed to have committed an offense. Upon conviction, such individuals may be subject to imprisonment for a period not exceeding two years or to a fine not surpassing €50,000, or both of these penalties.