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Employment in Cyprus - Termination of Employment

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Information on Cyprus employment termination law

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Ending employment

Employment can be terminated by the employer or the employee. The first 26 weeks constitute a probationary period. During this period the employer or the employee may terminate the employment without notice.

The employee is entitled to compensation if the employer dismisses him after the probationary period has expired. The amount of compensation depends on the employee's length of service.

An employee, who has been with the same employer for more than 104 weeks and is dismissed before reaching the pension period because he is surplus to requirements, is entitled to a payment from the redundancy fund. The employment of a seasonal worker totalling more than 15 weeks per year with one employer is treated as continuous.

The following conditions apply with regard to group dismissals:

the dismissal of 10 individuals together by an organisation employing 21-99 individuals or of 10% of the employees of an organisation employing 100-299 individuals or of 30 individuals together by an organisation employing more than 300 individuals is treated as a group dismissal;

the employer must consult the representatives of the employees in good time and give them sufficient information about the decision and the amount of compensation, etc.;

the employer must inform the Ministry of Labour and Social Insurance.

The following information is relevant with regard to pensions:

the social insurance contribution is 6.8 % for employees, 6.8% for the employer and 4% for the State;

social insurance contributions are paid by all persons who earn a living as employees;

self-employed people also pay social insurance contributions, the level of which is based on income, profession and the place of the employment;

all insured persons (salaried persons, self-employed persons and insured persons who have paid contributions voluntarily) are entitled to the old-age pension.  The old-age pension is payable at 63 years of age or at 65 years of age if the insured person does not meet the conditions to receive it at the age of 63;

widows of insured persons are entitled to the survivor's pension in accordance with the relevant conditions.

Allowances for bodily injury sustained at work and disability and death benefits are also paid on the basis of the Social Insurance Department legislation.

Information about the above matters can be obtained from the Social Insurance Department 
Social Insurance Services
7 Vyronos Avenue
1465 Nicosia  

Central Offices of Social Insurance Services:(00357) 22401600 Fax: (00357) 22672984

Source European Union

Last Updated 05 October 2016

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