Hiring guide in Cyprus

What should I know about hiring in Cyprus?

Many companies have begun looking at Cyprus as their primary choice for establishing a presence there. Those who choose to work in Cyprus will find an atmosphere similar to other developed European countries, with the added benefit of significantly lower personal taxation.

In addition, every worker has the right to a formal written employment agreement outlining their job responsibilities, compensation, and duration of employment. Finally, it is essential to note that employees in Cyprus are protected by several regulations that ensure they have access to a secure and healthy workplace, receive reasonable compensation for their time and effort, and can organise if they want.

Why is Cyprus a good choice for finding remote employees?

Modern, service-based, and free-market, Cyprus’s economy offers international and domestic investors and businesses a wide range of opportunities for development, expansion, and profit maximisation. 

Cyprus’s convenient tax structure and economic stability make it an excellent location for international operations. In addition, many Cypriots have completed postsecondary education, creating a highly educated and talented labour force. 

Therefore, companies looking to establish themselves or expand their operations would consider this country. Furthermore, the government's openness to international investment offers many financial and other benefits to companies that relocate to Cyprus.

How can Native Teams help you hire in Cyprus?

Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Cyprus. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved. 

 Hire your first employee in Cyprus with Native Teams.

Legal requirements for hiring in Cyprus

When hiring new team members in Cyprus, follow the labour laws outlined below.

Legal framework

Cyprus employment law is based on a combination of statutory legislation, common law principles and contractual agreements. Employment relationships are primarily governed by individual employment contracts, while statutory provisions establish minimum rights and obligations covering areas such as termination, working hours, annual leave and social insurance.

Where employment matters are not specifically regulated by legislation, general contract law principles apply.

Key employment legislation in Cyprus includes:

• Termination of Employment Law of 1967 (as amended): Regulates employment termination and related rights.
• Social Insurance Law of 1980 (as amended): Governs social insurance contributions and benefits.
• Annual Paid Leave Law of 1967 (as amended): Establishes employees' annual leave entitlements.
• Protection of Maternity Law of 1997: Provides maternity-related employment protections.
• Minimum Salaries Law (as amended): Regulates minimum wage requirements.
• Equal Treatment at Work and Employment Law of 2004 (as amended): Establishes protections against discrimination in employment.
• Health and Safety at Work Law of 1996 (as amended): Sets workplace health and safety obligations.
• Law 100(I)/2000: Requires employers to inform employees about the terms and conditions of their employment.
• Collective Redundancies Law of 2001: Regulates collective redundancy procedures.

Types of employment contracts

Cyprus employment law recognises different types of employment contracts depending on the nature and duration of the role. The two main types are indefinite duration and fixed-term contracts.

Indefinite duration contracts

Indefinite duration contracts have no specified end date and are typically used for permanent positions. Employees are entitled to statutory benefits and protections, including annual leave, applicable sick leave provisions and social insurance coverage.

Termination is governed by the Termination of Employment Law of 1967 (as amended), which sets out the requirements for lawful dismissal, including notice periods and applicable redundancy payments.

Fixed-term contracts

Fixed-term contracts have a specified start and end date and are commonly used for temporary positions, seasonal work or project-based employment.

These contracts generally end when the agreed term expires, unless both parties agree to renew or extend them. Under the Fixed-Term Work Law of 2003, fixed-term employees are entitled to comparable employment conditions to permanent employees.

Successive fixed-term contracts may be treated as indefinite employment unless their renewal is objectively justified.

Probation periods are generally limited to six months, with three months commonly recommended as a practical starting point.

Content of an employment contract

Employment contracts in Cyprus must clearly outline the terms and conditions of employment, including the rights and responsibilities of both the employer and the employee.

An employment contract should include the following information:

• Employer and employee details: Full legal names and addresses of both parties.
• Place of work: The employee's primary work location and the employer's registered business address.
• Job title and responsibilities: The employee's position, role or area of specialisation.
• Start date and duration: The employment commencement date and, for fixed-term contracts, the agreed duration.
• Notice periods: The notice required for termination by either party, in line with applicable law.
• Annual leave: The employee's annual leave entitlement and any relevant conditions.
• Compensation: Salary, bonuses, additional benefits and payment frequency.
• Working hours: Standard daily or weekly working hours and applicable overtime arrangements.
• Collective agreements: Any collective bargaining agreements that apply to the employment relationship.

 Download a free employment contract for Cyprus through Native Teams.

Oral, written or electronic employment contracts

Written employment contracts are the most common form of employment agreement in Cyprus. However, an employment relationship can still be legally valid without a formal written contract.

Employers must provide employees with written information about their terms and conditions of employment. This can take the form of:

• Written employment contract: A formal agreement outlining the terms, rights and obligations of both parties.
• Letter of engagement: A document setting out the essential terms and conditions of employment.
• Other recognised documents: Any legally accepted document containing the required employment information.

Under the requirements outlined in the source, employers must provide this information within one month of the employee's start date. Any changes to employment terms must also be communicated in writing within one month of taking effect.

Even without a written contract, the employment relationship remains legally enforceable, with rights and obligations arising from verbal agreements, implied terms and the conduct of both parties.

Working hours

The standard full-time working week in Cyprus is generally 40 hours, unless otherwise specified by law, a collective agreement or an employment contract.

Where working hours are not explicitly defined, a 40-hour working week is generally assumed.

Part-time employees work fewer hours than full-time employees and are entitled to comparable employment rights and protections, including those relating to working hours and overtime.

Night work

Night work in Cyprus generally refers to work performed between 8 pm and 6 am.

Employees working night shifts may be entitled to additional compensation or benefits under applicable laws, employment contracts or collective agreements. These may include higher pay rates, night shift allowances or additional time off.

Certain employees, including pregnant women, nursing mothers and young workers, may also be entitled to additional protections. For example, pregnant employees may be exempt from night work if it poses a risk to their health or their baby's health.

Breaks and types of leave

Employees in Cyprus are entitled to daily and weekly rest periods, as well as paid and unpaid leave under certain conditions.

• Rest breaks: Employees working at least six hours a day are entitled to a break of at least 15 minutes. The break cannot be taken at the beginning or end of the working day.
• Daily rest: Employees are entitled to at least 11 consecutive hours of rest within every 24-hour period.
• Weekly rest: Employees are entitled to at least 24 consecutive hours of rest each week.

Employers may also arrange weekly rest over a 14-day period, providing either:

• Two separate rest periods of at least 24 hours each.
• One continuous rest period of at least 48 hours.

Annual leave

Employees in Cyprus are entitled to at least four weeks of paid annual leave per year, equivalent to:

• 20 working days for employees working five days a week.
• 24 working days for employees working six days a week.

These are the statutory minimum entitlements. Employers may offer additional annual leave through employment contracts, collective agreements or workplace policies.

Salary

Cyprus has a government-set national minimum wage that establishes the minimum salary employers must pay eligible employees.

Employers must ensure that salaries meet the applicable minimum wage requirements.

To calculate the salary and taxes in Cyprus, click here.

Sick leave

Employees in Cyprus are entitled to sick leave, with specific conditions depending on their employment contract or collective agreement. Eligible employees may receive sickness benefits for up to 156 days.

Sick leave must be supported by a medical certificate confirming the employee's inability to work, generally from the first day of illness.

Sickness benefits are subject to applicable social insurance rules, while any additional employer-paid sick leave depends on the employment contract or collective agreement.

Parental leave

Employees in Cyprus are entitled to up to 18 weeks of parental leave per child, which can be taken until the child reaches eight years of age.

Employees must generally have completed six months of continuous employment with the same employer to qualify.

Parental leave can be taken flexibly, subject to the employer's operational needs, with the following conditions:

• Leave can be taken in periods of at least one day.
• Employees can generally take up to five weeks of parental leave per calendar year.
• Eligible insured parents may receive parental leave benefits through the social insurance system.

Paternity and maternity leave

Employees in Cyprus are entitled to maternity and paternity leave, with financial support available to eligible parents through the social insurance system.

Paternity leave

Fathers are entitled to two consecutive weeks of paternity leave, which can be taken within 16 weeks of the child's birth.

Adoptive fathers are also entitled to two consecutive weeks of leave within 16 weeks of the adoption.

Eligible fathers may receive paternity benefits of approximately 72% of their insurable earnings, subject to social insurance conditions. Benefits may be reduced or withheld if the employer continues to pay their salary during leave.

Maternity leave

Employed and self-employed mothers in Cyprus are entitled to maternity leave, with the duration depending on the number of children:

• First child: 18 weeks.
• Second child: 22 weeks.
• Third and subsequent children: 26 weeks.

Maternity leave generally begins between two and nine weeks before the expected birth.

Employees adopting a child under the age of 12 may also qualify for 16 weeks of maternity leave, subject to applicable conditions.

Financial support during maternity leave

Eligible mothers may receive maternity benefits of approximately 72% of their insurable earnings, subject to social insurance requirements.

Benefits may be reduced or withheld where the employer continues to pay the employee's salary during maternity leave.

Methods of employment termination

Employment termination in Cyprus is governed by the Termination of Employment Law (24/1967), as amended, alongside common law principles.

Employment contracts may be terminated in the following circumstances:

• Employee resignation: Employees may terminate their employment by resigning, subject to applicable notice requirements.
• Employer dismissal: Employers may terminate employment for legally permitted reasons, provided they comply with applicable notice periods and other statutory requirements.
• Expiry of a fixed-term contract: Employment ends when the agreed contract period expires, unless the parties agree to renew or extend it.
• Mutual agreement: Employers and employees may agree to end the employment relationship, preferably documenting the terms in writing.
• Retirement: Employment may end upon retirement, subject to the employment contract and applicable legal requirements.
• Death of the employee: The employment contract ends automatically upon the employee's death.
• Death of the employer: Where the employer is an individual, their death may result in termination unless the employment relationship continues under a successor.
• Court decision: Employment may also be affected by a binding decision of the competent court.

Ordinary dismissal by the employer

Employers in Cyprus may terminate an indefinite-term employment contract, provided they have lawful grounds for dismissal and comply with applicable notice requirements.

Dismissal should be communicated to the employee in writing, with the reasons for termination clearly explained where required.

Redundancies

Employers may terminate employment for business-related reasons, including:

• Economic changes: Financial difficulties or reduced business activity.
• Technical changes: The introduction of new technologies or changes to production processes.
• Organisational changes: Restructuring or the elimination of certain positions.

Employees dismissed due to redundancy may be entitled to compensation under the Termination of Employment Law, subject to the applicable eligibility requirements.

Notice period and challenging the dismissal

In Cyprus, statutory notice periods depend on the employee's length of continuous service and whether the employment is terminated by the employer or the employee.

Notice period for dismissal by the employer

Employers must provide written notice to employees who have completed at least 26 weeks of continuous employment.

The minimum notice periods are:

• 26-51 weeks of service: 1 week's notice.
• 52-103 weeks: 2 weeks' notice.
• 104-155 weeks: 4 weeks' notice.
• 156-207 weeks: 5 weeks' notice.
• 208-259 weeks: 6 weeks' notice.
• 260-311 weeks: 7 weeks' notice.
• 312 weeks or more: 8 weeks' notice.

Dismissal without notice

Employers may dismiss employees without notice in certain circumstances, such as serious misconduct, subject to applicable legal requirements.

Notice may also not be required during a valid probationary period, depending on the employment terms and applicable legislation.

Notice period for resignation

Employees must also provide notice when resigning, based on their length of continuous service:

• 26-51 weeks of service: 1 week's notice.
• 52-259 weeks: 2 weeks' notice.
• 260 weeks or more: 3 weeks' notice.

Employers may choose to make a payment in lieu of notice rather than require the employee to work during the notice period.

Rights and obligations of unemployed persons

Unemployed individuals in Cyprus may be entitled to unemployment benefits if they meet the applicable social insurance contribution requirements.

Eligibility generally requires at least 26 weeks of insurable employment and sufficient social insurance contributions.

Unemployment benefits are available to eligible individuals aged 16 to 63. This age limit may be extended to 65 for individuals who are not entitled to a statutory pension.

These benefits provide temporary financial support while individuals seek new employment.

Severance pay

Employees in Cyprus may be entitled to compensation when their employment is terminated, provided they have completed at least 26 weeks of continuous service and meet the applicable legal requirements.

Compensation is generally not payable in the following circumstances:

• Redundancy: Employees may instead qualify for payments under the statutory redundancy scheme.
• Fixed-term contract expiry: Employment ends when the agreed contract period expires.
• Retirement: Employment ends upon reaching the applicable retirement age.
• Employee misconduct or poor performance: Dismissal results from the employee's conduct or failure to perform their duties adequately.
• Exceptional circumstances: Termination results from events beyond the employer's control, such as natural disasters, war or destruction of the workplace, subject to applicable legal conditions.

Employees who have reached the statutory pensionable age of 65 are generally not entitled to termination compensation.

Probationary period

The standard probationary period in Cyprus is up to six months.

The probationary period should be proportionate to the duration of the employment contract and the nature of the employee's role.

Employers may terminate employment during the probationary period if the employee fails to meet the requirements of the position, subject to applicable legal conditions.

Employees may also terminate their employment during the probationary period.

Intellectual property rights

In Cyprus, intellectual property (IP) rights arising from employment are governed by applicable legislation and the terms of the employment contract.

IP created by employees as part of their employment duties generally belongs to the employer, subject to the type of intellectual property and any applicable legal provisions.

Employment contracts may include specific clauses covering:

• Ownership: Who holds the rights to intellectual property created during employment.
• Use and licensing: How intellectual property can be used, licensed or commercialised.
• Assignment of rights: Whether employees must transfer certain intellectual property rights to the employer.

Employers should clearly define intellectual property ownership and related obligations in employment contracts to help prevent disputes.

Employee data privacy

Employee data privacy in Cyprus is governed by the EU General Data Protection Regulation (GDPR) and the Protection of Individuals with Regard to the Processing of Personal Data Law of 2018.

Employers must comply with the following requirements:

• Lawful processing: Personal data must be processed on a valid legal basis, such as contractual necessity, legal obligations or legitimate interests.
• Transparency: Employees must be informed about how and why their personal data is collected, used and stored, including any significant automated decision-making.
• Sensitive data: Special categories of personal data, such as health information or religious beliefs, require additional protection and a valid legal basis for processing.
• Data security: Employers must implement appropriate measures to protect employee data against unauthorised access, loss or misuse.

Prohibition of competition

In Cyprus, employment contracts may include non-compete clauses restricting employees from engaging in competing business activities during or after their employment.

Competition during employment

Employees are generally expected to avoid activities that conflict with their employer's business interests. This may include working for a competitor or operating a competing business without the employer's consent.

Employers may seek compensation if an employee's competing activities breach their contractual obligations and cause financial loss.

Non-compete clauses after employment

Employers may include clauses restricting competition after employment ends. However, their enforceability depends on applicable law and whether the restrictions are reasonable and necessary to protect legitimate business interests.

Remote working policy

Employees in Cyprus may work remotely on a permanent, temporary or occasional basis, subject to agreement with their employer.

Remote working arrangements must be suitable for the employee's role and comply with applicable occupational health and safety requirements.

Either the employer or the employee may propose a remote working arrangement or request changes to existing employment terms.

Employees may also request remote working to better balance their professional and personal responsibilities, although approval depends on the nature of their work and the employer's operational requirements.

Responsibilities within a remote work arrangement

Remote working arrangements in Cyprus should clearly define the rights and responsibilities of both employers and employees.

Employee rights and responsibilities

• Remote work requests: Employees may request to work remotely. Employers should respond to these requests and provide written reasons if they are rejected.
• Return to the workplace: Employees on temporary remote working arrangements may request to return to the employer's premises before the agreed period ends.

Employer rights and responsibilities

• Equal treatment: Remote employees should receive the same salary and employment benefits as employees performing comparable roles on-site.
• Working hours and leave: Employers must organise workloads and deadlines to ensure remote employees can take their statutory daily and weekly rest periods and annual leave.

Health and safety at home

In Cyprus, the Health and Safety at Work Law (Law No. 89(I)/1996) establishes health and safety obligations for employers and employees, including those working remotely.

Employer responsibilities

Employers must take appropriate measures to maintain a safe home working environment, including:

• Risk assessments: Identifying potential workplace hazards and taking steps to minimise risks.
• Equipment: Providing suitable work equipment and ensuring it can be used safely.
• Training: Informing employees about relevant health and safety procedures.
• Ongoing support: Addressing reported hazards and health and safety concerns.

Employee responsibilities

Remote employees must also contribute to a safe working environment by:

• Following the employer's health and safety guidelines.
• Using work equipment correctly and safely.
• Reporting hazards, unsafe conditions or faulty equipment promptly.

What are the advantages of hiring employees from Cyprus vs other countries?

Hiring employees from Cyprus offers several distinct advantages compared to other countries. Cyprus’s location at the crossroads of Europe, Asia, and Africa gives Cypriot employees a unique blend of cultural awareness and language proficiency, especially in English, which is widely used in business.

It also has a favourable time zone (EET/EEST) that aligns well with both European and Middle Eastern markets, facilitating smooth communication and collaboration for companies operating across multiple regions.

Finally, Cyprus offers a favourable legal and regulatory framework for employment. The country has well-established labour laws that balance employee rights with employer flexibility. This creates an environment where businesses can confidently hire employees, knowing they can structure employment terms effectively.

Why use Native Teams for hiring in Cyprus?

Native Teams helps you employ and pay your team in Cyprus directly through owned entities and infrastructure. 

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company setup: You can expand your business using our company entities.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Local expertise: We can help you navigate local regulatory environments and ensure you meet all relevant requirements.
• Dedicated support: We make sure your employees feel supported and cared for through the entire process.