Employment Law and Work Permit Criteria in Cyprus
The procedure and rules for the approval of work permits are based on the arrangements agreed by the Social Partners and approved by the Council of Ministers on 6 December 1991.
One of the main conditions for approving the Cyprus Company with employment of foreign workers is that the employer must show that the specific staffing needs of the business cannot be covered by the local labour market, meaning Cypriot citizens or citizens of other European Union Member States.
Our Firm, Simon Zenios & Co LLC, will assist with the submission of the notification of vacancy. The vacancy will then be examined by the competent department of the Ministry of Labour and Social Insurance, which will confirm whether the position can be filled locally or whether the employment of a foreign worker may be justified.
More specifically, the criteria for the approval of a work permit, which have remained in force since 1991, are the following:
- There must be no suitable-qualified local personnel available to satisfy the specific needs of the employer.
- The local labour force must be protected and utilised in the most effective way.
- The working conditions at the place of employment should be improved where necessary.
- The terms and conditions of employment offered to foreign workers must be the same as those offered to Cypriot employees.
- In cases where work permits are recommended for foreign workers with specialised skills, experience, or knowledge that are not available among Cypriot employees, the employer must appoint a Cypriot employee to be trained during the period of employment of the foreign worker.
As part of the wider strategic planning for the employment of foreign in Cyprus, efforts have been made to introduce more practical, fair, and objective criteria. These criteria are connected with the actual development needs of the economy and take into account the broader framework created by Cyprus’ accession to the European Union.
Terms and Conditions of Employment
The Republic of Cyprus protects the principle of equal treatment between foreign workers and local employees through its Constitution, which safeguards human rights without discrimination on the basis of race, religion, ethnic origin, or other personal characteristics.
In particular, Article 28(2) of the Constitution provides that:
“Every person shall enjoy all the rights and liberties provided for in this Constitution, without any direct or indirect discrimination against any person on the ground of his community, race, religion, language, sex, political or other convictions, national or social descent, birth, colour, wealth, social class or any other ground whatsoever.”
In addition, the Government of Cyprus has ratified, among others, the following international conventions:
• The ILO Migration for Employment (Revised) Convention, 1949, No. 97
• The Migrant Workers (Supplementary Provisions) Convention, 1975, No. 143
• The Discrimination (Employment and Occupation) Convention, 1958, No. 111
Furthermore, Cyprus has accepted Article 19 of the Revised European Social Charter, which concerns the right of migrant workers and their families to protection and assistance. These legal instruments provide that migrant workers must be treated no less favourably than nationals.
Decisions of the Council of Ministers, together with various administrative procedures and arrangements, have also been introduced in order to promote and secure equal treatment between migrant workers and Cypriot nationals, particularly in relation to employment terms and working conditions.
The Ministry of Labour, Welfare and Social Insurance further ensures equal treatment through written employment contracts signed by both the employer and the foreign employee. These contracts set out the main employment terms, including working hours, salary, benefits, holidays, overtime pay, duties, and other related matters. These conditions should correspond to those applicable to Cypriot employees, mainly on the basis of collective agreements.
Applications by Employers
Our Firm, Simon Zenios & Co LLC, will provide support from the very beginning of the procedure, including the preparation, completion, and submission of the relevant application.
Under the current policy, the Department of Labour examines applications submitted by employers for the employment of foreign workers, provided that the criteria and procedures agreed by the Social Partners are satisfied.
The main categories of companies for which applications may be examined are the following:
- Local enterprises
- Local companies with foreign investment
A. Local Enterprises
Applications by local enterprises for the employment of foreign workers are submitted to the District Labour Offices. The District Labour Offices are responsible for examining and confirming whether the relevant criteria are satisfied.
In particular, they must confirm that:
- There are no suitably qualified local personnel, either Cypriot or European citizens, available to cover the employer’s specific needs.
- The local labour force is protected and used in a more effective way.
- Working conditions at the workplace are improved where required.
- The terms and conditions of employment offered to foreign workers are equal to those offered to Cypriot employees.
Once a Cypriot employer receives initial approval from the Department of Labour for the employment of a specific number of foreign workers, the employer may then proceed with an application to the Department of Civil Registry and Migration for the employment of specific foreign nationals.
The work permits are issued by the Director of the Department of Civil Registry and Migration.
B. Companies with Foreign Investment
In the case of companies with foreign investment, the request is submitted directly to the central offices of the Department of Labour.
The application form for foreign employment must be completed and submitted together with all required supporting documents, as listed in the relevant application form.
Examination Procedure
The examination procedure for applications submitted by local enterprises is generally as follows:
1. New Applications
At the initial stage, applications are submitted to the District Labour Offices by our Firm. The District Labour Offices examine the application and assess whether the criteria for the employment of foreign workers are met.
The main issue examined is whether the employer’s needs can be satisfied through the local labour force, meaning Cypriot or European citizens.
In addition, the interested company or employer is required to advertise the available position in daily newspapers through the Employment Services of the District Labour Offices.
If no Cypriot or European citizens are available, suitable, and capable of filling the specific position, the employer may then submit the special application form for the employment of foreign workers. The form must be duly completed and accompanied by all required supporting documents listed in the application form.
2. Applications for Additional Foreign Workers or Renewal of the Labour Department’s Recommendation Letter
Where an employer applies for the employment of additional foreign workers, or for the renewal or replacement of foreign workers already employed, evidence of medical insurance must be provided for the existing foreign employees. The insurance must cover both hospital and non-hospital medical expenses.
The completed application form, together with all necessary supporting documents, is then forwarded to the headquarters of the Department of Labour for a final decision.
The employer, through our Firm, will be informed in writing about the result of the application.
Where the Labour Department issues a positive recommendation for the employment of a specific number of foreign workers in particular professions, the employer must then proceed with the next stage.
Through our Firm, the stamped employment contracts, together with the recommendation letter, will be submitted to the Civil Registry and Migration Department of the Ministry of Interior. This Department is the competent authority for issuing the relevant work permits.
Procedure for Stamping
A. For All Cases
- We will prepare and complete one employment contract for each foreign employee and make five photocopies. The contracts must be properly completed and signed by the parties and the witnesses. If the foreign employee is not in Cyprus, his or her signature is not required at this stage.
- Each copy of the contract should bear €2 stamp duty, except for the original. The stamps must be cancelled with initials and the date.
- We will submit to the District Labour Office the initial approval letter from the Ministry of Labour and Social Insurance, together with the employment contracts for stamping.
- We will also submit the Social Insurance Contribution Report and Receipt for the last 12 months. The same requirement applies in relation to self-employed personnel.
B. In Cases of Renewal or Replacement of Foreign Employees
- In the case of replacement of a foreign employee who leaves Cyprus, the word “Replacement” must be written on the upper part of the first page of the employment contracts. The name and MP number of the foreign employee who is leaving must also be included.
- In the case of renewal of an employment contract, the word “Renewal” must be written on the upper part of the first page of the employment contract, together with the MP number of the foreign employee. This number appears on the Temporary Residence and Employment Permit, commonly known as the pink slip.
- Health insurance must be submitted, covering medical expenses for both hospital and non-hospital treatment.
- A deposit booklet from a bank in the name of the foreign employee applying for renewal of the work permit must also be submitted. This should show the deposit of the employee’s monthly salary.
C. For the Tourist Industry Generally
In addition to the documents and steps mentioned above under points 1 to 8, the following documents must also be submitted for businesses operating in the tourist industry:
• The Operation Permit from the Cyprus Tourism Organisation
• The renewed Alcohol Permit, bearing a recent date
• A completed report on the distribution of the service charge of 10%
The employment contracts must then be submitted to the Collection Stamps Officer for stamping.
Finally, the stamped employment contracts must be submitted to the Aliens Section of the District Police Headquarters for the issue of the work permit.
Conclusion
Our Firm, Simon Zenios & Co LLC, assists companies/employers throughout the full procedure, from the preparation of the relevant documents and employment contracts to the submission of the application and communication with the competent authorities.
We guide companies through each stage of the process and ensure that the required documents are properly completed and submitted in accordance with the applicable requirements.
Contact Information:
Simon Zenios & Co LLC
Phone: 00357–24 02 33 70
Email: [email protected]
Visit Our Website: Simon Zenios & Co LLC
Disclaimer: This press release is for informational purposes only and does not constitute legal advice. Companies are encouraged to seek professional legal and tax advice to understand the specific implications of the Employment of Non-EU Citizen for Cyprus Company with Foreign Investments for their business.
