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ARE EMPLOYMENT CONTRACTS A PREREQUISITE?

Are Employment Contracts a prerequisite?

I receive quite a few enquiries pertaining to the Employment Law and its application in Cyprus.
I have asked Despo Andreou to provide us with answers, in order to assist Organizations and Individuals understand their rights and obligations in an employment relationship.
Despo Andreou is a registered Cyprus Lawyer and Employment Law is among her main areas of expertise.

Muriel: “Is it required for every Employee to have an Employment Contract under Cyprus Employment Law?”

Despo: “As outlined in the Law no.100(I)/2000 the Employer is obliged to give a notification to the Employees with the essential terms of their employment. However, the Employer may not have this obligation, only when:

  • The whole employment period will last less than a month.
  • The Employee will be working less than 8 (eight) hours per week.
  • The employment will be occasional or peculiar and it is reasoned under the circumstances not to be given a notification.

The notification of the employment essential terms to the Employee may be effected either by a written Employment Contract, a Letter of Employment or by any other document which is signed by the Employer and contains at least the below:

  • Parties identification (who is the Employer and who is the Employee);
  • The place in which the Employee will offer his/her work;
  • The registered office of the Company or the address of the Employer;
  • The Employee’s position, his/her title, duties - subject of his/her work;
  • The commencement date of employment;
  • The duration of the employment in case the employment is for a specific period;
  • How many days the Employee is entitled to annual leave, the way and the manner the Employee takes the leave;
  • The length of the notice that should be given in case of termination of the employment by either party;
  • The earnings (salary, 13th salary, etc.)  the Employee is entitled to and the way he/she shall receive such remuneration;
  • The working hours daily or weekly.

The above said notification should be given within a month from the commencement date of employment.”

Muriel: “Why is an Employment Contract important between both parties?”

Despo: “In general, Employment Contracts protect both Employers and Employees against issues which may arise from the employment relation. Employment Contracts define the obligations and rights for both parties so as to avoid confusion or ambiguity and provide certainty to both parties. Employment Contracts also help to avoid disputes and litigation proceedings, or if disputes arise, to assist in easier settling of those disputes.”

Muriel: “Will Organizations be penalized if they do not provide Employment Contracts?”

Despo: “According to the same Law, an Employer who doesn’t comply without a reasonable cause with his/her obligations deriving from the said Law, among which is the obligation to notify his/her employees of the employment essential terms, is guilty of offence and in the case he/she is convicted by the Court, a monetary penalty up to €854,00 may be imposed on him/her.”

♦♦♦♦

Despo Andreou is a registered Cyprus Lawyer since 1999. She is one of the partners of the Law Firm Pyrgou Vakis and the Head of the Litigation Department.
Her main areas of expertise are Civil and Commercial Litigation, Banking Law, Contract Law, Family Law, Employment Law, Personal Injury Claims and Insurance Law.
She regularly advises clients on Employment Law, Family Law and the Administration of Estates issues. She performs private client work, including drafting of wills and Administration of Estate.
Her clientele includes among others, major Cyprus banks and foreign companies.
Despo Andreou is a Member of the Cyprus Bar Association.

© Muriel Matta 2017 

Muriel Matta (BSc, MSc, MPhil, Cert CTT Practitioner) is the Founder of Maravilhosa.
She is a multilingual Human Resources Management expert, with extensive cross-cultural experience, spanning 27 years in MENA, Europe and CIS.
Through her work with Organizations and Individuals, she helps solve the  toughest HR challenges by customizing unique training and coaching  solutions to inspire change, positive thinking and transformation.
Muriel can be contacted via email: Muriel@maravilhosa.net