Transparent and Predictable Working Conditions Law in Cyprus : What Employers Must Do

Many Cyprus companies have recently received official communication from the Department of Labour Relations requesting submission of employee employment terms.

This is part of the enforcement of the Transparent and Predictable Working Conditions Laws of 2023–2024, which apply to all employers in Cyprus.

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What is this law about?

The legislation implements an EU Directive aiming to ensure that all employees:

• Clearly understand their employment terms
• Receive essential information in writing
• Are protected from unclear or informal arrangements

In practice, this means that employers must formally document and communicate employment conditions.

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Why is this happening now?

Although the law has already been enacted, authorities in Cyprus have now moved into an active enforcement phase.

This development is driven by:

EU compliance requirements

Cyprus is aligning with European standards on transparency and employee protection.

Increased scrutiny

Authorities are requesting evidence, not just confirmation, that employees have been properly informed.

Legal protection framework

In case of disputes, the burden of proof increasingly falls on the employer. Proper documentation reduces risk.

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What are employers required to provide?

Employers must ensure that each employee receives written information covering:

✔ Basic terms (within 7 days of employment)

• Employer and employee details
• Job title or role
• Start date
• Place of work
• Salary and payment details
• Working hours

✔ Additional terms (within 1 month)

• Leave entitlements
• Notice periods
• Probation terms
• Training (if applicable)
• Collective agreements (if applicable)

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What about company policies?

Many employers ask whether internal policies or employee handbooks are sufficient.

Policies can be used, provided that:

• They are accessible to employees
• They can be stored and printed
• They clearly describe relevant terms

However:

Policies alone are usually not enough, because certain terms must be specific to each employee, such as:

• Salary
• Job role
• Start date
• Working hours

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Practical compliance approach

A compliant structure typically includes:

1. Individual employee information

This can be provided through:

• Employment contracts, or
• A Statement of Employment Terms

👉 In some cases, a list of employees with key details (e.g. salary, role, working hours) may support documentation, but it is not sufficient on its own without proper communication to each employee.

2. Supporting company policies

Policies can complement the above by covering:

• Leave
• Procedures
• Internal rules

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Example: Statement of Employment Terms

Employers may use a simplified document such as:

Statement of Employment Terms

Employer: [Company Name]
Employee: [Employee Name]
Position: [Job Title]
Start Date: [Date]
Place of Work: [Location]

Salary: [Amount] payable [frequency]
Working Hours: [e.g. 40 hours per week]

Probation Period: [if applicable]
Notice Period: [e.g. 1 month]

Additional terms are governed by company policies, which are available to the employee.

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Deadline and submission

Employers who received the official request must submit the relevant documentation by 31 July 2026 to the Department of Labour Relations.

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Risks of non-compliance

Failure to comply may result in:

• Administrative penalties
• Increased inspection risk
• Exposure in employment disputes

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How we can assist

At Rightax, we support Cyprus businesses with:

• Preparation of compliant employment documentation
• Review of existing contracts and policies
• Drafting Statements of Employment Terms
• Guidance on labour law compliance

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Need assistance?

Contact us at to ensure your business is fully compliant with the latest employment law requirements in Cyprus.

Reach out for expert help with tax, accounting, audit, or company setup in Cyprus.

+357 99 108 510

[email protected]