Cyprus Fact-File Part 6:
Individual Business Employment Issues

6.1 Cyprus Individual Business Employer Responsibilities

The duties and responsibilities of individuals in business as regards employing people

When a new employee starts work, they must be provided with a contract of employment and a letter of appointment within one month of their commencement date. A number of things must be documented and given to the employee, notably:

The identities of the contracting parties;
Place and address of business;
The employee’s job title and duties;
Employment start date;
Duration of employment (if fixed term);
Details of the employee’s remuneration;
Working hours;
Any other information relating to their employment.

Employment contracts can be fixed term or open-ended, and fixed-term contracts must not be used to artificially deprive a worker of benefits and rights that would be afforded to them after a certain period.

Unfair dismissal protections will generally not apply where a person has been employed for less than 26 weeks (or is still in their probationary period), and the required notice period after this threshold varies according to length of service, from one week where the employee has been employed for between 26 weeks and one year, to up to eight weeks, where the employee has been continuously employed for more than 6 years.

In addition to withholding and remitting income tax on behalf of their employees, employers must pay Social Contributions for all employees equal to 8.5% of an employee's gross salary (up to a ceiling of EUR48,048) in addition to the 2% payable to the social cohesion fund.