Every employment relationship in Cyprus rests on a contract, whether or not it is written down. Where terms are not recorded, they are inferred from law, collective agreements and practice, which is a frequent source of dispute. Since 2023, the law has gone considerably further than before in requiring employers to set out the essential terms of employment in writing, making a clear, compliant contract both a legal obligation and the employer’s best protection.
The Duty to Provide Written Terms
Under the Transparent and Predictable Working Conditions Law of 2023, which transposed EU Directive 2019/1152, employers must provide employees with an extensive set of information about their employment. The core information must be given before the employment begins or, at the latest, within seven days of commencement, with the remaining items following within one month. The information may take the form of a written contract or a separate statement, and must be retained.
The essential terms of employment must also be registered with the State through the ERGANI information system, so an accurate, up-to-date contract now feeds directly into a compliance obligation, not just the private relationship between the parties.
What a Contract Should Contain
A well-drafted contract of employment in Cyprus should, as a minimum, address:
- the identity of the employer and employee, and the place of work;
- the job title and a description of the nature of the work;
- the date employment begins and, for a fixed-term contract, its end date or expected duration;
- the duration and conditions of any probationary period;
- remuneration — the basic salary and any separate components — and the frequency of payment;
- normal working hours and arrangements for any overtime or variable scheduling;
- annual leave and other leave entitlements;
- the notice periods or the procedure to be observed on termination;
- any training entitlement; and
- the social-security institutions receiving contributions.
Depending on the role, a contract will often also deal with confidentiality, restrictive covenants, intellectual property, and data protection.
Probationary Periods
Since 2023, a probationary period may no longer exceed six months, save in limited cases (for example, members of the board of directors of legal entities, or where a collective agreement provides otherwise). For fixed-term contracts, any probationary period must be proportionate to the expected duration of the contract. This is a significant change from the previous position, and contracts and recruitment processes should be aligned with the shorter window. The interaction with dismissal protection is explained in our guide to termination of employment and redundancy.
Fixed-Term and Part-Time Contracts
Employment may be for an indefinite or a fixed term. Cypriot law contains safeguards against the abuse of successive fixed-term contracts: where fixed-term employment continues beyond the period permitted by law without objective justification, it may be treated as employment of indefinite duration. Part-time and fixed-term employees are also protected against less favourable treatment than comparable full-time or permanent staff unless a difference is objectively justified. Employers relying on fixed-term or part-time arrangements should ensure the basis for them is genuine and documented.
Practical Guidance for Employers
Use written contracts, and keep them current. A contract that predates April 2023 is very likely to be missing information the law now requires. Review your templates and update them.
Match the contract to ERGANI. Ensure the essential terms recorded in the contract are accurately reflected in the ERGANI registration, and update both when terms change.
Mind the probation cap. Check that no contract provides for probation beyond six months outside the limited exceptions, and that fixed-term probation is proportionate.
Tailor, don’t copy. Generic templates frequently omit role-specific protections (confidentiality, restrictive covenants) or misstate entitlements. A contract should reflect the actual role and the parties’ intentions.
How We Can Help
Our employment law team drafts and reviews contracts of employment, written statements of terms, and the full range of employment documentation for employers across Cyprus, and advises employees on the terms they are offered or asked to sign.
This article is provided for general information purposes only and does not constitute legal advice. It reflects the position as at the time of writing; readers should seek specific advice on their circumstances.
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law.
For advice tailored to your circumstances, please contact us using [email protected] to arrange a consultation with our employment law team.
