Employer’s Duty to Inform Employees of Key Terms of Employment in Cyprus

In today’s regulatory environment, employers cannot afford to overlook the statutory duty to inform employees of the essential terms of their employment. The obligation is not merely a matter of best practice; it is a legal requirement under the Ο περί Διαφανών και Προβλέψιμων Όρων Εργασίας Νόμος του 2023 – 25(I)/2023, which transposes the EU Directive (2019/1152).

The General Rule

Article 11(1) of Law 25(I)/2023 expressly provides that “every employer shall inform their employees of the essential terms of the contract or employment relationship in accordance with this Law.” This information must be communicated in writing, either in paper form or electronically, and the employer must be able to demonstrate proof of such notification (Article 11(2)).

What Must Be Disclosed

The statute sets out, with precision, the minimum information to be provided (Article 11(3)). Employers must disclose, inter alia:

• the identity of the parties to the contract;

• the place of work and registered seat of the undertaking;

• the employee’s job title or a description of duties;

• the commencement date and, where applicable, the duration of a fixed-term contract;

• the terms of any probationary period;

• rights to training provided by the employer;

• the duration of paid leave;

• the procedure and notice periods applicable to termination;

• the components of remuneration, including frequency and method of payment;

• the normal working day or week, overtime rules, and shift arrangements;

• in the case of unpredictable working schedules, minimum guaranteed hours, reference hours and days, and notice requirements;

• applicable collective agreements; and

• the identity of the social insurance body collecting contributions.

This list is deliberately exhaustive, ensuring employees have a clear understanding of the rights and obligations inherent in their employment.

Timing and Amendments

Employers are permitted a short grace period but must provide the required information no later than seven calendar days from the commencement of employment (Article 12(1)).

Where there is a change to any of the essential terms, Article 13 mandates that the employer must issue a written statement reflecting the variation and deliver it to the employee “as soon as possible and not later than the date on which the change takes effect.” The only exception concerns changes resulting from legislative or collective bargaining provisions, in which case a new statement is unnecessary.

Employees Working Abroad

Special rules apply where an employee is required to work outside the Republic of Cyprus for more than four consecutive weeks. Under Article 14(4), the employer must furnish additional details, such as the country of work, currency of remuneration, and conditions for repatriation.

Practical Implications for Employers

Failure to comply with these obligations may expose employers to disputes, complaints before the Labour Department, or litigation. Courts and tribunals are likely to take a strict approach where the employer cannot produce written evidence of compliance. From a risk management perspective, employers should:

• adopt standardised employment contract templates incorporating all mandatory particulars;

• implement onboarding checklists to ensure timely delivery of information;

• maintain verifiable records of written notifications, whether electronic or hard copy; and

• review contracts periodically to ensure compliance with evolving legislation.

Conclusion

The statutory duty to inform employees of their terms of employment is not a formality; it is a cornerstone of modern employment law, designed to ensure transparency, predictability, and legal certainty. For employers operating in Cyprus, compliance with Law 25(I)/2023 is both a legal necessity and a prudent safeguard against liability. Proactive adherence to these requirements will enhance employee relations, reduce the risk of litigation, and demonstrate the employer’s commitment to fair and lawful workplace practices.