Employer's Obligations in Cyprus
The employers in Cyprus are obliged to provide to their employees certain employment rights, which are enforceable by the legislation, in order to protect the employees.
INFORMATION TO BE PROVIDED UPON EMPLOYMENT
As an employer you are obliged to inform the employee in writing, within one month after commencement of the employment, of the essential conditions applicable to his contract of employment or employment relationship.
None of the above-mentioned conditions of employment can be less favourable to the employee concerned than those provided for by the respective Legislation:
- Employment Contract or Relationship Laws of 2000 and 2007
- Organisation of Working Time Laws of 2002 and 2007
- Protection of Wages Law of 2007
- The Fixed-Term Work Laws of 2003 and 2007
- The Part-time Work Laws of 2002 to 2007
- Maternity Protection Law
- Redundancy Law
- Termination of Employment Law
The minimum salary is fixed on 1 April each year by Order of the Council of Ministers for certain professions like shop assistants and clerks.
On 1st April 2012 the minimum monthly salary upon recruitment was revised to €870, while the minimum monthly wage for employees, who have completed a six month period of employment at the same employer, was revised to €924.
Any employer who pays less than the minimum wage to an employee belonging to any of the occupations covered, is guilty of an offense and is liable, on conviction, to a fine not exceeding €170 and to an additional fine not exceeding €42 for every day of contravention of the Order after conviction.
In case of conviction of the employer, the employee may claim payment of the difference between his wage and the minimum wage, for a period of up to two years before the date of complaint.
MAINTENANCE OF PROPER RECORDS
As an employer you should maintain certain documents regarding your employees such as their Employment Contract, Copy of their ID /Passport, Residential Address, Telephone No., Tax No., Social Insurance No. and Yellow/Pink slip for foreigners.
Furthermore you should keep their signed weekly/monthly Payslips, IR.59 forms and IR.63 forms and record absent time from work.
INCOME TAXES AND SOCIAL INSURANCE CONTRIBUTIONS
Employers are obliged to register to Social Insurances and pay Social Insurance Contributions for all their employees based on their Gross Salary (including bonuses and benefits in kind) on a monthly basis.
Additionally you must withhold Social Insurance Contributions, Income Tax (PAYE) and Special Contribution Tax from the gross salaries of your employees.
PAYE and Special Contribution Tax should be calculated in January every year by the employer using the employee's income declaration for IR.59.
HEALTH AND SAFETY AT WORKPLACE
It is important to consider the rights and obligations regarding the Health and Safety in the workplace. The relevant legislation can be found here.
A safe and healthy environment can add value to your business and will not only assist you to attract quality employees but also to increase their efficiency.