The Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023) (the “Law“) constitutes a key reform of Cypriot employment law, implementing Directive (EU) 2019/1152 and introducing enhanced transparency, predictability, and minimum rights for employees. Its primary objective is to ensure that employees are fully informed of the essential terms of their employment relationship and that such information is provided in a clear and verifiable manner.
In recent years, enforcement of the Law has intensified, with the Ministry of Labour and Social Insurance conducting targeted compliance checks and requiring employers to submit documentary evidence demonstrating that employees have been properly informed of their employment terms.
Obligation to inform employees
Under Article 11(3) of the Law, employers are required to provide employees with clear and comprehensive written information regarding the essential terms of employment. This information must include, at a minimum the following information:
- the identity of the parties to the employment relationship
- the place of work or, where no fixed location exists, a statement to that effect and the employer’s address
- the job title, nature, or description of the work
- the date of commencement of employment
- the duration or end date (for fixed-term contracts)
- the duration and conditions of any probationary period
- annual leave entitlements and procedures
- termination procedures and notice periods
- remuneration, including salary, benefits, and payment method
- working hours and arrangements
- overtime conditions
- the organisation of working time (especially where unpredictable)
- training entitlements
- applicable collective agreements
- social security information
Timeframes for compliance
The Law establishes specific deadlines for the provision of employment information. The key employment terms must be provided within a short period following the commencement of employment and more detailed or supplementary information must be provided within a maximum period of one month.
As part of ongoing enforcement efforts, employers who have received a formal communication from the Department of Labour Relations must submit the required documentation by 31 July 2026.
Practical compliance requirements
To comply effectively with the Law, employers must:
- provide individualised employment terms to each employee
- ensure that the terms are provided in written or electronic form
- ensure that the employee has received and acknowledged the information
- maintain documentary proof of transmission and receipt
- formally update and communicate any changes to employment terms with proof of employee acknowledgment
- retain documentation in a format that can be presented during inspections
In practice, compliance is assessed not merely based on whether the information was provided, but on whether the employer can produce acceptable documentary evidence confirming that the employee has received and acknowledged the terms of employment.
The authorities have clarified that: (i) standard/template contracts without personalisation and (ii) employee handbooks submitted without proof of individual acknowledgment the following are not sufficient evidence on their own
Inspections and Sanctions
The Ministry of Labour exercises its enforcement powers under Law through a range of inspection and compliance mechanisms, including requests for documentation and employment-related information, on-site inspections and investigations at business. Employers are required to provide all necessary information, documents and access to facilitate such inspections and to ensure compliance with the Law.
In case of conviction, in addition to the financial penalty, non-compliance with Law constitutes a criminal offence and may result in the initiation of legal proceedings against the employer. Employers are also under a statutory obligation to cooperate with competent authorities during inspections, and failure to do so may lead to further enforcement action.
Implementation
The implementation of the Law has shifted from a purely regulatory framework to an actively enforced compliance regime. The emphasis is no longer solely on providing information, but on demonstrating through verifiable evidence that employees have been properly informed and have acknowledged their employment terms.
The 31st of July 2026 deadline highlights the urgency with which authorities are pursuing compliance across all sectors. Employers are therefore strongly advised to review their internal processes, ensure full documentation of employment terms and establish robust systems of record-keeping.
Our team can provide comprehensive support to ensure full compliance with Law by assisting in the review and updating of existing employment contracts, preparing tailored and compliant documentation aligned with your organisation’s specific needs and supporting you in effectively responding to requests from the authorities.