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.