Eurofast's Expertise In EOR Services And Cyprus Legislation



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Discover how Employer of Record (EOR) services facilitate global expansion by managing complex employment laws and regulations. Learn about Eurofast's expertise...
Cyprus Employment and HR
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Discover how Employer of Record (EOR) services facilitate global expansion by managing complex employment laws and regulations. Learn about Eurofast's expertise in EOR and payroll services and explore the benefits and Cyprus-specific distinctions in this comprehensive article.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party entity that assumes the role of the official employer for administrative purposes, particularly regarding taxes and payroll. By taking on this responsibility, an EOR simplifies the hiring and management processes for businesses.

Key Benefits of an EOR:


Key Points in Cyprus Employment Legislation

As an Employer of Record (EOR) operating in Cyprus, it is crucial to have a comprehensive understanding of the local employment laws [1, 2]. Let's explore the key provisions that are relevant to EORs in Cyprus.


Employment Agreement

In Cyprus, it is highly recommended to have a written contract.An employment agreement should be signed by the employer and employee alike. The terms and conditions of employment should be clearly stated. They should include essential details such as: identities of the employer and employee, work location (or mobility details if no fixed location), a job title, nature, or description, a salary, and a start date.

Types of Employment Agreements

Two common types of contracts are Indefinite duration and Fixed-Period.

A fixed-period contract is signed for a term not exceeding 30 months. If the employee continues beyond 30 months, it automatically converts into an indefinite contract. A probation period of up to six months is allowed, but it cannot exceed two years without a written agreement between the employer and employee.

Standard Working Hours

The Organization of Working Time Law governs working hours, rest periods, breaks, and annual leave. Employees typically work from 38,5 hours to 40 hours (maximum) distributed across five working days per week. Weekly working hours cannot exceed 48 hours, including overtime. A minimum rest period of 11 consecutive hours within every 24-hour period is mandatory.

Annual Leave

In Cyprus, employees have 21 days of annual leave. The amount of annual leave days may increase based on the specific benefit policy established by the employer.

Termination of Employment Agreements

Cyprus labor laws regulate termination, including notice periods, severance pay, and procedures for redundancy or dismissal.


Significant Updates to Employment in Cyprus

In response to arising workplace needs, Cyprus has implemented significant updates to its labor law:

  • Effective January 1, 2024, Cyprus increased monthly minimum wage to 1,000 EUR, with a reduced rate of 900 EUR for the initial six months of employment. However, certain worker categories remain exempt from this adjustment.
  • Cyprus has embraced the EU Directive on work-life balance. It grants employees the immediate right to annual leave and introduces regulations for remote work arrangements.
  • New legislation focuses on workplace safety and wellbeing with measures aimed at preventing violence and harassment.
  • Enforcement of equal treatment legislation falls under the oversight of the Ombudsman's Office.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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