ARTICLE
12 August 2016

Employment | Unlawful Deduction Of Benefits

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AGPLAW | A.G. Paphitis & Co. LLC

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Established in 2006, AGP & Co is a highly reputable, dynamic, award winning and excellence driven Law Firm based in Cyprus with a strong international presence. It provides full service Legal, Corporate, FS Advisory & Regulatory Compliance/AML, Tax, Immigration and Real Estate services.
According to the Cyprus legislation, an employer cannot proceed to the deduction of an employee's benefits without the prior explicit consent of the latter.
Cyprus Employment and HR

According to the Cyprus legislation, an employer cannot proceed to the deduction of an employee's benefits without the prior explicit consent of the latter.

Benefits include the following:

  • monthly salary;
  • 13th salary;
  • bonus;
  • annual leave.

If the employee decides to resign of his own accord due to a deduction of a part or of all of his benefits, then he/she may be able to claim compensation for Constructive Dismissal.

What is a constructive dismissal?

In the case of Constructive Dismissal, the employee resigns from his employment of his own accord due to the employer's unlawful decisions and/or conduct.

A constructive dismissal is treated as unfair termination of employment at the employer's initiative and the employee may claim compensation at a Labour Disputes Court.

For further information on the unfair dismissal, please click here.

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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