The Cypriot Employment Law makes a clear distinction between an employment contract for service and a contract for multiple services. The difference is important when it comes to applicable taxes according to the Cypriot taxation system.
For contracts of services the Cypriot Contract Law is usually enabled but for employment contracts there are provisions such as the probation period or termination that apply.
The Cypriot employment contract can be temporary or permanent. The fixed term or temporary contract in Cyprus will be considered finished at the specified termination term but even so, the Industrial Disputes Court can decide if the contract is for an indefinite period of time if there is evidence that leads to such conclusion.
In order to conclude an employment contract the Labor Law in Cyprus makes clear specifications about the trial period, the notice period and the paid vacation an employee is entitled to. The Cypriot Employment Law states that the minimum trial period can be up to six month but allows the employer to set the probation period for an increased amount of time. However, in this case the law governing unlawful dismissal does not apply.
The Law is very clear about the obligation of the employer to bring to the employee’s attention detailed information about the employment contract within one month from the commencement of the collaboration. The information can be delivered by employment contract or by letter of appointment.
The indefinite employment contract, which is usually the most common type of labor contract, must contain the following data:
The annual leave an employee is entitled to in Cyprus is 20 days for a 5-day working week and 24 days for a 6-day working week.
In case of dismissal the notice period to be given varies depending on the amount of time the employee has been with a Cypriot company and is set at a minimum of one week for employees that do not exceed 52 working weeks. In case of employees with 104 working weeks the notice period has been set at two weeks and reaches the maximum of eight weeks ‘notice in case of employees with 312 working weeks.
If the employee is the one deciding to leave the notice period starts with one week for a 52 employment weeks, two weeks for 260 working weeks and three weeks for work periods exceeding 260 weeks.
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