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Cyprus
 


Source and scope of regulations - 2012    

References
  • Termination of employment Act No. 24 of 1967, as amended up to Act 111(1) 2003 [TEA] (in Greek only)
    Date: 25 Jul 2003; view website » (view in NATLEX »)
  • Collective Dismissals Act, No. 28(I) of 2001 [CDA] (in Greek only)
    Date: 09 Mar 2001; view website » (view in NATLEX »)
  • Protection against Maternity Act, No. 200(I) of 1997, as amended up to Act 70(I) of 2011, published on 29 April 2011 (in Greek only)
    Date: 29 Apr 2011; view website »
Scope
Size of enterprises excluded (≤): 20
Remarks:
  • Exclusion only applicable to Collective Dismissals Act (sec. 2 CDA). No exclusion under the TEA, therefore the rules on individual dismissal apply to all enterprises.

Workers' categories excluded: civil/public servants; police; army
Remarks:
  • Employment of the public servants, police and armed force personnel is regulated by the Public Service Law (No. 1/90) and Municipal Corporations Law (No. 111/85).

Types of employment contracts - 2012    

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Maximum probationary (trial) period: 24 month(s)

Remarks:
  • Sec. 3 and 9 TEA.
    The requirement on notice period and on compensation for unfair dismissals do not apply for the first 26 weeks (6 months) of the contract. This period can be extended to 104 weeks (24 months) if this was agreed in writing by both parties at the time the contract of employment was concluded.

Fixed term contract (FTC):
  • FTC regulated: Yes
  • Valid reasons for FTC use: no limitation
    Remarks:
    • Subject to correct interpretation of the 98(I)/2003 Act (available only in original language) that transposes the Council Directive 1999/70/EC of 25 June 1999 concerning the framework agreement on fixed-term work.


  • Maximum number of successive FTCs: no limitation
    Remarks:
    • Subject to correct interpretation of the 98(I)/2003 Act (available only in original language) that transposes the Council Directive 1999/70/EC of 25 June 1999 concerning the framework agreement on fixed-term work.
  • Maximum cumulative duration of successive FTCs: no limitation
    Remarks:
    • Subject to correct interpretation of the 98(I)/2003 Act (available only in original language) that transposes the Council Directive 1999/70/EC of 25 June 1999 concerning the framework agreement on fixed-term work.
  • % of workforce under FTC: 15.3 %
    Remarks:
    • Source: Eurostat, as of second trimester 2012.
      The figure refers to the percentage of employee with a contract of limited duration (= temporary job) of total number of employee aged 15-74 years.
      Eurostat data are based on the following definition:
      "A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Substantive requirements for dismissals (justified and prohibited grounds) - 2012    

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Obligation to provide reasons to the employee: No
Remarks:
  • Only for collective dismissals is justification explicitly requested in the legislation.
    (sec. 21 TEA (notification to the labour administration) and sec.4-5 CDA (consultation with the trade union representatives).
    No such provision exists with regard to individual dismissals based on the worker's conduct or capacity.


Valid grounds (justified dismissal): economic reasons; worker's conduct; worker's capacity
Remarks:
  • Sec. 5 TEA. As a general rule, dismissal is deemed unfair unless the employer proves the existence of one of the reasons exhaustively listed in the legislation.
    "These are:
    - the employee fails to carry out his or her work in a reasonably efficent manner,
    - the employee becomes redundant,
    - termination is due to an act of god or force majeure,
    - the contract is for a fixed-term and has expired or the employee has reached the normal age of retirement,
    - the employment relationship cannot be expected to continue (the employee is guilty of gross misconduct, a criminal offence or immoral behaviour in the course of his or her duties, the employee repeatedly disregards his or her work and duties)"
    (see European Commission, Termination of Employment Relationship - Legal situation in the following Member States of the European Union: Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia, 2007, p. 51.)


Prohibited grounds: marital status; pregnancy; maternity leave; filing a complaint against the employer; race; colour; sex; religion; political opinion; social origin; nationality/national origin; trade union membership and activities; disabilities; parental leave; participation in a lawful strike
Remarks:
  • Sec. 6 TEA
    See also, European Commission Study, TER, 2007, p.56.


Workers enjoying special protection: pregnant women and/or women on maternity leave; workers with family responsibilities
Remarks:
  • See: Maternity Protection Act (No. 100(I)/97, as amended in 2011), sec. 4:
    Prohibition to give notice for termination to pregnant women after the announcement of pregnancy and up until 3 months after the expiry of the maternity leave and to women on adoption leave. However, this does not apply when the employed woman is found guilty of a serious offence or behaviour justifying termination of the employment relationship, when the undertaking ceases its activities, or when the contract period has come to an end (sec. 4B)


Procedural requirements for individual dismissals - 2012    

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Notification to the worker to be dismissed: written

Remarks:
  • Sec. 9(5) TEA.

Notice period:
Remarks:
  • Sec. 9 TEA.
    Notice to be given to the employee (except in cases giving rise to summary dismissal) is established according to the length of service, as follows:
    * 1 week's notice from 1 to less than 52 weeks of service;
    * 2 week's notice from 52 to less than 104 weeks of service;
    * 4 weeks' notice from 104 to less than 156 weeks of service;
    * 5 weeks' notice from 156 to less than 208 weeks of service;
    * 7 weeks' notice from 260 to less than 312 weeks of service;
    * 8 weeks' notice from 312 and more weeks of service.
    • tenure ≥ 6 months
      • 1 week(s).
    • tenure ≥ 9 months
      • 1 week(s).
    • tenure ≥ 2 years
      • 4 week(s).
    • tenure ≥ 4 years
      • 6 week(s).
    • tenure ≥ 5 years
      • 7 week(s).
    • tenure ≥ 10 years
      • 8 week(s).
    • tenure ≥ 20 years
      • 8 week(s).

    Pay in lieu of notice: Yes

    Remarks:
    • Sec. 11 TEA.

    Notification to the public administration: No

    Notification to workers' representatives: No

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Procedural requirements for collective dismissals for economic reasons (redundancy, retrenchment) - 2012    

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    Definition of collective dismissal (number of employees concerned):
    At least, over a period of 30 days:
    1) 10 employees in undertakings with 20 to 99 employees;
    2) 10 % of the employees in undertakings with 100 to 299 employees;
    3) 30 employees in undertakings with at least 300 employees.

    Remarks:
    • Sec. 2 CDA

    Prior consultations with trade unions (workers' representatives): Yes

    Remarks:
    • Sec. 4 & 5 CDA

    Notification to the public administration: Yes

    Remarks:
    • Sec. 6 CDA.
      Sec. 21 TEA.

    Notification to workers' representatives: Yes

    Remarks:
    • Sec. 4 & 5 CDA

    Approval by public administration or judicial bodies: No

    Approval by workers' representatives: No

    Priority rules for collective dismissals (social considerations, age, job tenure): No

    Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

    Remarks:
    • Sec. 4 CDA

    Priority rules for re-employment: Yes

    Remarks:
    • Sec. 22 TEA (within 8 months following redundancy and subject to the operational needs of the enterprise)

    Severance pay and redundancy payment - 2012    

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    Redundancy payment:
    Remarks:
    • Provided he has completed 104 weeks of continuous service, an employee who is dismissed on economic grounds is entitled to redundancy payments from the Redundancy Fund which is wholly financed by contributions from employers under the social insurance scheme. According to sec. 18 and the first schedule of the TEA, redundancy payment is calculated as follows:
      * 2 weeks' wages for each year of service up to four year;
      * 2,5 weeks' wages for each year of service from 5 to 10;
      * 3 weeks' wages for each year of service from 11 to 15;
      * 3,5 weeks' wages for each year of service from 16 to 20;
      * 4 weeks' wages for each year of service beyond 20 years.
      Redundancy payment is limited to 75,5 weeks' wages.
    • tenure ≥ 6 months: 0 week(s)
    • tenure ≥ 9 months: 0 week(s)
    • tenure ≥ 1 year: 0 week(s)
    • tenure ≥ 2 years: 4 week(s)
    • tenure ≥ 4 years: 8 week(s)
    • tenure ≥ 5 years: 10.5 week(s)
    • tenure ≥ 10 years: 23 week(s)
    • tenure ≥ 20 years: 55.5 week(s)

    Notes / Remarks
    1) Dismissal based on the employee's conduct or capacity: no statutory severance pay.
    2) Economic dismissal: redundancy payment.

    Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - 2012    

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    Compensation for unfair dismissal - free determination by court: No

    Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
    Statutory compensation for unfair dismissal is calculated following the scheme of redundancy payment. It varies according to the length of service and is limited to 24 months.

    Remarks:
    • (Note that an employee is entitled to compensation for unfair dismissal provided he or she has been employed for more than 26 weeks (extended to 104 weeks if agreed by the parties at the conclusion of the contract) and he has not reached the age of 65)

      Pursuant to schedule 4 of the TEA, statutory compensation is established as follows:
      * Max. 2 weeks' wages for each year of service up to 4 years;
      * max. 2.5 weeks' wages for each year of service from 5 to10;
      * max. 3 weeks' wages for each year of service from 11 to 15 years;
      * max. 3.5 weeks' wages for each year of service from 16 to 20 years
      * max. 4 weeks' wages for each year of service from 21 to 25 years.
      Compensation is limited to 24 months' wages.

      The Industrial Disputes Court may take into account additional factors.


    Reinstatement available: Yes

    Preliminary mandatory conciliation: No

    Remarks:
    • No statutory provision in the legislation reviewed / no information in the secondary sources.

    Competent court(s) / tribunal(s): ordinary courts; labour court

    Remarks:
    • Sec. 2 and 3 TEA.
      The Industrial Dispute Court has jurisdiction over cases of unfair dismissals (Proceedings must be initiated within 1 year from the date of dismissal).
      Alternatively, the employee may institute proceedings before the civil courts for breach of the employment contract (wrongful dismissal). They must be initiated within six years following the date of termination of employment.

    Existing arbitration: No

    Remarks:
    • No statutory provision in the legislation reviewed / no information in the secondary sources.

    Source of additional information - 2012    

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    Links

    ILO Committee of Experts on the Application of Conventions and Recommendations - Comments on the ILO Termination of Employment Convention, 1982, No. 158 »