Annual Leave in Cyprus: Legal Framework and Employee Rights

The right to annual paid leave is a cornerstone of employment protection in Cyprus. It is governed by the Annual Paid Leave Law of 1967 (Law 8/1967, as amended), harmonised with EU directives, and applies across the private and public sectors.

1. Scope of the Law

The Law covers almost all employees in Cyprus, including shareholder–employees of private companies, with the sole exception of clergy. Collective agreements or contracts may provide for more favourable terms, in which case the employee benefits from the more advantageous entitlement.

2. Duration of Leave

Employees who complete at least 48 weeks of continuous employment within a leave year are entitled to a minimum of four weeks of annual paid leave:

• 20 working days (for a five-day week), or

• 24 working days (for a six-day week).

Where collective agreements, custom or contracts provide more generous leave, those provisions prevail.

3. Excluded Periods

Certain periods do not count towards annual leave: public holidays, maternity/paternity/parental leave, sick leave, strikes or lockouts, notice periods, and care leave. If such periods arise during scheduled annual leave, the leave is considered interrupted and must, where possible, be completed within the same leave year.

4. Carry-Over of Leave

The general rule is that annual leave must be taken within the leave year to which it relates. However, in practice and under EU-aligned interpretation, unused leave may be carried over into the first quarter of the following year, provided there are valid reasons (such as illness, family leave, or employer refusal to grant leave). Courts and labour inspectors stress that leave cannot be indefinitely accumulated, as its purpose is to safeguard health and safety.

Upon termination of employment, any untaken leave must be paid in cash, ensuring the employee does not lose accrued rights.

5. Enforcement and Case Law

The Industrial Disputes Court enforces the law, holding that annual leave is an inalienable right which cannot be waived or replaced by money except upon termination. Following EU jurisprudence, Cypriot courts emphasise that the right to rest is a matter of public policy.

Conclusion

Annual leave in Cyprus guarantees workers 20 or 24 working days per year, depending on their work pattern. While the default rule is use-it-within-the-year, limited carry-over into the next year is permitted, particularly where leave could not reasonably be taken. This reflects the balance between legal certainty and the fundamental aim of protecting employees’ health and well-being.