​​Unfair Dismissal

1. When a dismissal of an employee is lawful and justifiable?  

Pursuant to article 6 of the Termination of Employment Law, L.24/1967 as amended, the dismissal of an employee is lawful and justifiable only if the employer demonstrates, on the balance of probabilities, that the dismissal was based on any of the grounds listed in article 5 of the Law. Article 5 of the Law sets out the following list of the lawful grounds for termination of employment:  

1. where the employee does not perform the required duties in a reasonably satisfactory manner (excluding temporary incapacity for work due to illness, injury or childbirth);  
2. where the employee has been made redundant in accordance with the law;  
3. where the termination is due to force majeure, act of war, civil commotion, act of God, destruction, etc.;  
4. where the employment is terminated at the end of a fixed term; or  
5. where the employee displays such conduct as to render himself subject to summary dismissal without notice and it is clear that the relationship between employer and employee cannot be reasonably expected to continue, for example if the employee has committed a serious disciplinary or criminal offence during the performance of his duties, has behaved indecently during the performance of his duties or has repeatedly violated or ignored the rules of his employment.  

It is clear that a dismissal for any reason which cannot be justified under any of the grounds stated above it is highly probable to be held unlawful and unfair by the Courts. 

2. When a termination notice is required? 

If an employer wishes to terminate an employment contract of an employee who has been employed for a continuous period of at least 26 weeks, then a termination notice may be needed to be served to the employee. Specifically, the Law provides that: 

1. the grounds listed in par. 1(i)-(v)  above, clearly require written notice (statutory or contractual) to be given to the employee; whilst 
2. the ground listed in par. 1(v) above renders the employee liable to summary dismissal without notice. 

For the avoidance of any doubt, no termination notice is required to be given to an employee on probation, unless the probation period last longer than 104 weeks. 

Further, the employer may prefer to make a payment in lieu of notice instead of allowing the employee to work out his or her notice period. Payment- in- lieu- of- notice is money paid to an employee by the employer on termination of employment as an alternative to him or her being given and serving out the full notice for which the sum paid is equivalent to the applicable notice period.  

Finally, it should be noted that the period of notice depends on the duration of the employment as explained in the below table, unless it is agreed otherwise:  

More than 26 weeks but less than 52 weeks	1 week
More than 52 weeks but less than 104 weeks	2 weeks
More than 104 weeks but less than 156 weeks	4 weeks
More than 156 weeks but less than 208 weeks	5 weeks
More than 208 weeks but less than 260 weeks	6 weeks
More than 260 weeks but less than 312 weeks	7 weeks
312 weeks or more	8 weeks

3. What unfair dismissal is? 

Unfair dismissal of an employee is any dismissal based upon a reason which cannot be justified under any of the grounds stated in article 5 of the Law (see par.1 above).  

However, it is of utmost importance to note that, the Law offers no protection in the event of a dismissal which is effected the first 26 weeks of employment or during an agreed probation period, which can be up to 104 weeks or where the employee has attained the pensionable age before terminating his/her employment. Such employment will only be governed by general contract law, and any rights and obligations of either party will be contractual in nature.  

4. Shall I apply for compensation? 

It is advisable to seek advice from an employment law expert. It is noted however that any dismissal for a reason which cannot be justified under any one or more of the reasons stated in par. 1(i)-(v) above will be held unlawful by the court and give rise to a right of compensation.  

The most common remedy available for unlawful dismissal is damages, which in the Industrial Disputes Tribunal cannot exceed two years’ wages nor  be lower than the redundancy payment to which the employee would receive in case his/her employment was terminated as a result of redundancy.  

For the determination of the compensation, the Court takes into account the following criteria: 

1. The remuneration of the employee; 
2. The period of employment; 
3. The loss and restriction of career prospects; 
4. The age of the employee; and 
5. The conditions of employee’s dismissal. 

5. Where shall I apply for compensation? 

An employee who is dismissed may bring a complaint of unfair dismissal to an employment tribunal. The employment tribunals have exclusive jurisdiction to determine matters arising from the termination of employment such as the payment of compensation (except where the amount claimed exceeds the equivalent of two years’ salary, in which case the applicant has to apply to the District Court against the employer for breach of contract), payment in lieu of notice, compensation arising out of redundancy and any other claim for any payment arising out of the contract of employment. If any party wishes to appeal the first instance decision, it shall do so before the Supreme Court of Cyprus. 

6. Time Frame 

An application requesting damages for unfair dismissal shall be filed by the applicant within twelve months from the date the termination notice was served to the employee or within nine months from the response of the Provident Fund for redundancy. 

7. Fees  

Our fees for representing a client in all legal proceedings in connection with an employment dispute depends on the complexity of the matter.