News / Publications

POSTED WORKERS

Cyprus has enacted the Posted Worker Directive into by the enactment of the Posting of Workers for the provision of Services and Relevant Matters Law (law 63 (I)/ 2017, (“the Law”)

The Law defines a posted worker as a worker who is actually employed by one EU company, (“the Home Company”) and whose employer posts him/her temporality in another member state in order that he/she may perform work for a limited period of time.

The Law is applicable to enterprises which are established within the European Union, (whether in the same group of companies or otherwise) and who in the course of the provision of services need to post workers in another EU country, pursuant to the contractual obligations between the host company and the home company.

Competent authority is the Ministry of Labour, which includes the Department of Social Insurance.

PURPOSE OF THE LAW

The purposes of the Law is the adoption of suitable mechanisms for the protection of the posted workers.

Enterprises which post workers in the Republic of Cyprus are obliged to guarantee the following for their workers:

• The working hours
• Annual leave
• How the posted worker’s skills will be utilized
• Implementation of health and safety at work
• Equality and non-racial discrimination

IMPLEMENTATION AND COMPLIANCE

The home company must provide a letter to the Ministry of Labour confirming::
• Name of home and host companies explaining the contractual relationship of the two entities
• Duration of posting
• Address where the posted work will be posted
• Name of person who shall supervise the posted worker
• Description of exact duties
• Confirmation that the posted worker will remain the employee of the home company and will remain subject to social insurance contributions in the country of origin.

Proof that the posted worker remains subject to social insurance contributions in his country of origin, by way of the form A1 must be provided to the Department of Social Insurance.

MONITORING OF COMPLIANCE

The Ministry of Labour in the Republic of Cyprus is the competent authority that monitors the host company to ensure that the conditions of employment of the posted worker are in accordance with the law.

The Ministry of Labour may appoint inspectors to investigate any irregularities by entering premises or by conducting inquiries and has the authority to notify the competent authorities in the home country in the event of irregularities/ noncompliance with the law and the conditions of the employment fo the Posted Worker.

PENALTY FOR NON COMPLIANCE

Any person who obstructs the work of the competent authority may be subject to prosecution and if found guilty may be liable to imprisonment for up to three months or a monetary fine for up to EUR 3,000 or both penalties. Additionally any person who acts in a manner which is contrary to the Law, is subject to criminal prosecution and may be subject to prison up to two years or EUR 50,000 monetary fine or both penalties.

Noncompliance entrails cross border administrative penalties /sanctions which may be imposed by the competent authority of either the host or the home country.