Companies & Businesses | Cyprus Passport | Licenses & Permits
Cyprus Employment Law: Different Contract Types
Cyprus Employment Law makes a clear distinction between an employment contract for service and a contract for multiple services. The current system in Cyprus is effective, fair and companies generally aim to follow the legislation carefully, like most countries in Europe.
The law identifies two types of employment contracts for Cyprus companies:
- Long-term Fixed Contact.
- Or a Provision of Multiple Services Contract.
There are substantial differences as to how the two different contract types are taxed. Labour relations that require occasional work, such as contractor or building projects are regulated by a contract of employment in Cyprus; work is provided for using a labour agreement which include probation periods and termination of contracts. Terms for other types of agreements are excluded.
Generally, Cyprus caters for working permanently or on a temporary basis. Officially, the termination of employment under a fixed-term employment contract occurs when terms in the employment contract expire with both parties not offering a proposal of extension. However, in the event that the contract does not specify the working end date, however after a certain period of time disputes arise, the Cyprus Labour Relations Court may consider that de jure work is deemed complete – if there is evidence to support this.
When entering into a fixed-term employment contract in Cyprus, the agreement will always specify all the necessary terms and conditions for the probation period, annual leave and termination of contract procedures. Cyprus employment law currently limits the maximum duration of probation period at 6 months and recommends a 3 month probation period for all companies on average.
If you would like more information on hiring individuals with different contractual types, contact us we can help you effectively structure your departments according to Cyprus employment legislation.