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What are the new working rules for posted workers in Cyprus?

Cyprus
09.02.21
3
Written by
George Z. Georgiou & Associates LLC, recognised in Cyprus and abroad as a leader in employment and pensions law.
Posted workers in Cyprus are subject to new rules, since the Act came into force on 27 November 2020. This article provides details from employer’s point of view.

Long-term posting rules

For posted workers, the terms of employment apply in accordance with the principle of equal treatment, applicable in the country of posting and concern: remuneration (minimum wage and overtime compensation, excluding supplementary occupational pension schemes); annual leave; working hours; health and safety at work; protection of children, young people, and pregnant women; equality and non-discrimination; accommodation conditions for employees away from their usual place of work;
allowances and expenses.

In the event that the duration of the secondment exceeds 12 months, the undertaking continues to guarantee, the posted workers the terms and conditions set out above on the basis of equality of treatment, irrespective of which law applies to the employment relationship. It is noted that in the event of an 18-month extension, the service provider must submit a reasoned notification to the competent authority in Cyprus.

Calculating time periods

The duration of the secondment is calculated based on a reference period of one year after its commencement. For the calculation of the secondment period, any previous period during which the post was filled by another posted worker, if any, is taken into consideration.

In the event that a company replaces a secondee with another secondee who performs the same work at the same place, (taking into consideration the nature of the service provided, the work performed, and the address(es)), the duration of the secondment is the cumulative duration of the posting periods of the individual posted workers concerned.

Allowances and expenses

Allowances or reimbursement of expenses to cover travel, board and longing expenses for employees away from home for business purposes must be included in the terms of employment. These apply exclusively to travel, board and lodging incurred by posted employees where they are temporarily sent by their employer from their regular place of work to different place of work.

These allowances will be considered as part of the worker’s salary, unless they are paid as expenses incurred due to the posting, and the employer repays these expenses to the posted employee in accordance with the local legislation and/or practice applicable to the employment relationship.

Information requirements

The sending undertaking must, prior the commencement of the posting and regardless of its duration, submit to the competent government authority the documents listed below, either in Greek or in English.

Written statement with the following information: name of undertaking, head office, address and its legal form;
legal representative of the sending undertaking and representative of the receiving undertaking in Cyprus (if such exists), for the duration of the posting; address where the seconded employees will provide their services and name, address and legal status of the undertakings receiving the services, registered office, address, legal form; date of commencement of services and secondment and its possible duration nature of the activity carried out. List of details for each posted worker as determined by the competent governmental authority; information on the liaison person from the posting company for the purposes of communication with the competent authorities; information on the contact person from the posting company as a representative for collective bargaining reasons. It is noted that in the event of a change in the above data, companies must submit an additional statement within 15 days of the change.

Penalties

If the provisions of the Law are violated, an administrative fine may be imposed of up to EUR 10,000 and up to EUR 20,000 for a repeated offence. In the event of an infringement or failure to comply with the provisions of the applicable law, if convicted, an individual is liable to imprisonment not exceeding two years or to a fine not exceeding EUR 50,000 or both.

Authors
Anna Praxitelous
Senior Lawyer - Cyprus
George Z. Georgiou
& Associates LLC