The intricate dynamics of employment law in Cyprus are predominantly governed by two pieces of legislation: Law N. 8/1967 and Law N. 24/1967. These laws stipulate the legal parameters within which the Industrial Disputes Tribunal operates and provide guidelines on issues such as unlawful termination and redundancy.

The Industrial Disputes Tribunal: Exclusive Jurisdiction

Law N. 8/1967 outlines the establishment of the Industrial Disputes Tribunal (Article 12(1)) and delineates its exclusive jurisdiction. Similarly, Law N. 24/1967 governs unlawful termination and redundancy, granting the Industrial Disputes Tribunal sole authority to arbitrate relevant labour disputes filed by employees. As stated in Article 30 of Law N. 24/67, the Industrial Tribunal Court holds the exclusive competence to settle all labour disputes arising from the application of this law. This includes cases such as unlawful termination by an employer, payment in lieu of notice, and rights to payment in redundancy cases.

Objectives of the Employment Laws

The primary intent of the Employment Laws is to safeguard employees against unilateral termination of their employment. However, it should be noted that this law does not curtail any additional rights that may be conferred to employees under contract law or any other legal principle.

The framework of Cyprus Employment Laws, while ensuring the protection of employees, also accommodates the dynamics of the employer-employee relationship. The law acknowledges the necessity of immediate termination under specific circumstances, and respects the contractual freedom within the bounds of its protective mandatory provisions.

Notice Period

Unless specific cases as defined by Law N. 24/67 justify immediate dismissal, an employee who has been continuously employed for at least 26 weeks is entitled to a minimum notice period as stipulated by article 9 of Law N. 24/67. If the employment contract specifies a longer notice period, the contractual terms supersede those in the law.

The notice must be presented in writing and, in the case of indefinite duration contracts, must be reasonable.

The employer reserves the right to pay the employee’s wages for the notice period in lieu of requiring the employee to work through it.

Unlawful Termination and the Right to Damages

Termination of employment by an employer is presumed to be unjustified and unlawful unless proven otherwise. It is incumbent upon the employer to substantiate the validity of the termination by proving that it aligns with the restrictive reasons outlined in Article 5 of Law N. 24/1967.

Article 5 specifies the legal grounds under which an employer can justifiably terminate an employment contract. This includes failure to satisfactorily perform work duties (excluding cases of temporary incapacity), redundancy, termination due to act of God, and termination resulting from the conclusion of a fixed-term contract or reaching retirement age.

In essence, the onus is placed on the employer to validate their reasons for termination. If they fail to do so or if the reason for termination falls outside the restrictive criteria set out in Article 5, the employee has the right to claim damages. This construct is designed to protect employees from arbitrary or unfair dismissals, thus creating a more balanced and equitable employment environment.

Right to Immediate Termination

In certain scenarios, the law provides provisions for the employer to enact immediate termination of an employment contract without prior notice. These circumstances are typically indicative of severe breaches of conduct, professionalism, or legality on the part of the employee.

Several circumstances may warrant immediate termination without notice. These include serious misconduct, commission of a criminal offence in the course of duty, repeated violation of work rules, and any conduct that significantly disrupts the employer-employee relationship.

It’s important to note that the principle of reasonableness underpins these provisions. The law does not provide a stringent rule that determines the degree of misconduct warranting immediate termination. Instead, each case is judged on its individual merits. The critical question in assessing the validity of immediate termination is whether a reasonable employer, under the given circumstances, would consider it justified to terminate the employee for the particular reason at hand.

Damages

The Industrial Disputes Tribunal’s compensation decision is bound by certain parameters; it cannot be less than the redundancy payment the employee would have received or more than two years’ wages. Several factors are considered when calculating compensation, including the employee’s wages, benefits, loss of career prospects, length of service, age, and the circumstances surrounding the termination.

Right to Proceed with an Action before the District Court

If an employee’s claim exceeds the compensation limit under the Act (i.e., beyond two years), the employee retains the right to appeal to the District Court.

Illegal Employment Agreements

Agreements that allow employees to waive or reduce their rights, particularly regarding unlawful dismissal, are deemed void under Cypriot law, as the law seeks to protect employees from unilateral termination as a measure of social security.

Voluntary Resignation

Voluntary resignation occurs when an employee willingly decides to terminate their employment. It’s characterized by the submission of a resignation, carried out of the employee’s free will, and absent of any undue pressure or threat from the employer or any other source.

This unilateral termination of employment is effected by a clear declaration of intent. The declaration may be expressed in writing, orally, or even by silence, as long as it unequivocally demonstrates the intention to terminate the employment relationship. However, it’s highly recommended that such resignations be formalized in writing to avoid any future misunderstandings or disputes.

Right to Appeal

Employees and employers have the right to appeal decisions made by the Industrial Disputes Tribunal. However, the scope of this right is limited to points of law only, meaning that an appeal cannot be based on the tribunal’s findings of fact, but rather on perceived errors in the interpretation or application of the law.

The process of appeal must be initiated within 42 days of the tribunal’s decision.

Extending the Scope of Employment Law

Beyond the protection against unilateral termination provided by Law N. 24/1967, employees in Cyprus are entitled to additional rights under other legal principles and contractual agreements. It’s important to remember that the law doesn’t curtail any rights conferred upon employees under contract law or other legal principles. This offers a broader spectrum of protection, ensuring fair treatment and justice in the workplace.

Drafting Employment Contracts

Crafting a well-structured employment contract is a vital aspect of maintaining a healthy employer-employee relationship. It serves as the foundation for defining the terms, expectations, and responsibilities of both parties. Here are the essential components that should be included in an employment contract:

• Employee and Employer Information: Full names and contact details of the employee and employer.
• Job Details: Detailed description of the job, including the job title, duties, and any performance expectations.
• Employment Duration: The contract should specify if employment is for a fixed term or of indefinite duration. If it’s for a fixed term, the start and end dates should be clearly stated.
• Compensation and Benefits: Clearly outline the wage or salary rate, the payment schedule, and any other benefits, including vacation pay, health benefits, retirement plans, etc.
• Work Schedule: Information about the working hours, overtime policy, and work location should be included(including working from hope iptions).
• Notice Period: The contract may stipulate the notice period for termination by either party, aligning with the minimum notice period defined by Law N. 24/67.
• Non-Disclosure and Confidentiality Agreements: If relevant, the contract should define the information considered confidential and the repercussions of breaching confidentiality.
• Termination Conditions: The contract should describe the circumstances under which the employment relationship can be terminated.
• Applicable Law: The contract should state that it’s governed by the laws of Cyprus.

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• Employment contract drafting and review
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The content of this article is valid as at the date of its first publication. It is intended to provide a general guide and does not constitute legal advice. We recommend that you seek professional advice on a specific matter before acting on any information provided.