The Law on Transparent and Predictable Employment Terms of 2023 (Law No. 25(I)/2023)

With the aim of harmonizing Cypriot labor legislation with Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union, on 13 April 2023, the Law on Transparent and Predictable Employment Terms of 2023 (Law No. 25(I)/2023) came into effect, by which the Law on Information of the Employee by the Employer about the Terms Governing the Contract or Employment Relationship (Law No. 100(I)/2000) was abolished.

The main changes introduced by the aforementioned law in labor law, aimed at improving employment terms, are summarized below:

1) In employment relationships that provide for a probationary period, such period cannot exceed six (6) months, regardless of any regulations that were in force before the commencement of the Law. In the case of fixed-term employment relationships, the duration of the probationary period corresponds to the expected duration of the contract or employment relationship and the nature of the work. Furthermore, it is also provided that in the case of renewal of a fixed-term contract or employment relationship for the same position and the same duties, a new probationary period is not required for the employment relationship.

2) The employer cannot prohibit an employee from taking up work with other employers, outside the working hours specified in the contract or employment relationship with the respective employer, or subject the employee to unfavorable treatment for this reason. As an exception, during recruitment, the employer may restrict concurrent employment by specifying in writing specific objective reasons for such restriction, relating to matters of safety and health, protection of business confidentiality, integrity of the public sector, and avoidance of conflicts of interest.

3) Every employer is obliged to inform their employees about the essential terms of the contract or employment relationship in accordance with the Law, while maintaining documentary evidence of the transmission and receipt of the relevant correspondence. The provided information includes at least the following:

(a) The identity details of the parties to the contract or employment relationship.

(b) The place of work provision and the registered office of the company or the employer’s residential address.

(c) The name, title, nature, or category of the employee’s work; or a concise characterization or description of the employee’s work.

(d) The commencement date of the contract or employment relationship.

(e) In the case of a fixed-term contract or employment relationship, the expiration date or the envisaged duration.

(f) If the employee is in temporary employment, the identity of the business to which the employee is assigned, as soon as it becomes known.

(g) The duration and terms of the probationary period, if such period is provided for in the contract or employment relationship.

(h) The training entitlement provided by the employer, if specified in the contract or employment relationship.

(i) The duration of paid leave to which the employee is entitled, or if this is not possible at the time of information provision, the details of granting and specifying such leave.

(j) The termination procedure followed by the employer and the employee, including the typical conditions and the duration of notice periods. If the duration of notice periods is not determined at the time of information provision, the method of determining these notice periods.

(ja) The remuneration, including the basic salary, any other components of the remuneration, listed separately, as well as the frequency and method of payment of the remuneration due to the employee.

(jb) The duration of the standard working day or week of the employee, if the working time schedule is entirely or largely predictable, the regulations concerning remuneration for overtime work, and any provisions regarding shift changes.

(jc) In cases where the working time schedule is entirely or largely unpredictable, the employer informs the employee about:

(i) the principle that the working hours are variable, the number of guaranteed paid hours, and the remuneration for work performed in addition to these guaranteed hours;

(ii) the reference hours and days within which the employee may be required to work;

(iii) the minimum advance notice period that the employee receives before the assignment of work, and, where applicable, the deadline for canceling the work assignment, as provided in paragraph (3) of Article 17.

(jd) Any collective agreements governing the terms of the employee’s work or, in the case of collective agreements concluded outside the company by special collective bodies or entities, the name of the competent body or entity under whose auspices these agreements were concluded.

(je) The identity details of the entity collecting contributions for social security purposes, provided by the employer, as well as any protection related to the said social security.

4) In cases where the working time schedule is entirely or largely unpredictable, the employee is not obliged by the employer to work if the following conditions are not met:

(a) The work takes place within predefined hours and reference days.

(b) The employee has been informed by the relevant employer about the work assignment within a reasonable time period before the start time of the work.

5) An employee who has completed at least six (6) months of service with the same employer and has successfully completed their probationary period, if provided for by the contract or employment relationship, has the right to request a transition to a form of employment with more predictable and secure terms of work, provided that such form of employment is available. The employee is entitled to receive a reasoned written response from the employer within one (1) month from the submission of the request.

6) In cases where the employer is obligated by the provisions of any relevant legislation in the Republic or collective agreements to provide training to the employee for the performance of the assigned work, such training is provided free of charge to the employee, is considered as working time, and if feasible, takes place during the normal working hours. However, it is provided that the above obligation does not cover training for the acquisition or renewal of professional qualifications if such training is not provided for by legislation or collective agreements.

Violation by the employer of any of the provisions of the aforementioned law renders them guilty of an offense, and upon conviction, they are subject to a monetary penalty not exceeding €5,500.

It is understood that the above-mentioned Law is applied subject to the rights of the employee provided by legislative, regulatory, or administrative provisions, as well as collective agreements. It does not affect any provisions that are more favorable to the employee.

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