Cyprus Employment Contract Law: Required Terms and the 2023 Transparent Working Conditions Law

For any business hiring in Cyprus, whether a startup founder, a fund manager building a local team, or an HR manager onboarding staff, the written statement of terms is now the single most scrutinised compliance document. This guide sets out exactly what a compliant contract must contain, the deadlines that apply, and the penalties for getting it wrong, written from the perspective of a Cyprus-Bar-regulated practice rather than a generic HR summary.

What law governs employment contracts in Cyprus in 2026?

Employment contracts in Cyprus are governed principally by the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023), read together with the Termination of Employment Law (Law 24/1967) and the various social insurance and health statutes. There is no single consolidated labour code, so a compliant contract must reflect several overlapping instruments at once.

The Transparent and Predictable Working Conditions Law of 2023 (25(I)/2023)

Law 25(I)/2023 is the cornerstone. It entered into force on 13 April 2023, repealing the earlier 2000 employment-notification law, and it reshaped what employers must tell their staff, how quickly, and in what form. The statute is not merely procedural. It creates substantive rights around probation, parallel employment and predictability of work that a written contract cannot lawfully override.

How Directive 2019/1152 changed the old 2000 notification law

The 2023 Law transposes EU Directive 2019/1152 on transparent and predictable working conditions. The previous 2000 regime obliged employers to notify certain terms but was thin on employee protections. The Directive, and now the Cyprus Law, expanded the list of mandatory information, shortened the delivery deadlines, capped probation, and introduced enforceable rights such as the right to request more secure work. In short, the duty shifted from a light notification obligation to a detailed, deadline-driven information duty backed by criminal enforcement.

Who is covered and the sub-3-hours-per-week exception

The Law covers employees generally, but it carves out workers whose predetermined total working time does not exceed an average of three hours per week measured over a reference period of four consecutive weeks. This narrow exception is designed for genuinely marginal engagements. Almost every ordinary employment relationship, full-time or meaningful part-time, falls squarely within scope, and employers should not assume casual or short-hours staff are automatically excluded.

Does an employment contract in Cyprus have to be in writing?

An oral employment contract is legally valid in Cyprus, but in practice a written document is unavoidable. Law 25(I)/2023 obliges every employer to provide the employee with written particulars of the essential terms, so while the contract itself may be verbal, the information duty can only be discharged on paper (or in a durable electronic form the employee can store and print).

Verbal contracts versus the written statement of terms

It is important to separate two concepts. The contract of employment is the agreement between the parties, which can exist verbally. The written statement of terms is the employer's statutory obligation to record and hand over the essential particulars. An employer who relies on a handshake and never issues the written statement has a valid contract but is nonetheless in breach of the Law and exposed to prosecution.

The employer's duty to inform, not just to contract

The statutory framing is a duty to inform. The employer must proactively deliver the particulars within the deadlines, keep proof that they were delivered and received, and update them when terms change. This is a one-way obligation on the employer. An employee who never signs a form does not relieve the employer of the duty, which is why most Cyprus employers now issue a signed contract that doubles as the written statement.

What terms must a compliant Cyprus employment contract contain?

A compliant Cyprus employment contract must contain the 15 mandatory information items set out in Law 25(I)/2023. These range from the basic identities of the parties to the social security bodies receiving contributions, and together they form the checklist against which a labour inspector will measure the document.

The 15 mandatory information items

The 15 items an employer must communicate are:

1. The identity of the parties (employer and employee).
2. The place of work, or a statement that the employee works at various places or is free to determine the place of work.
3. The job title, grade, nature or category of work, or a short job description.
4. The date on which employment begins.
5. For a fixed-term relationship, the expected end date or duration.
6. The duration and conditions of any probationary period.
7. The remuneration, including the initial basic amount, any other components, and the frequency and method of payment.
8. The normal daily or weekly working hours, and arrangements for overtime and its pay.
9. Where the work pattern is unpredictable, the details of the variable schedule and the minimum notice before an assignment.
10. Any entitlement to training provided by the employer.
11. The amount of paid leave, in particular annual leave.
12. The notice periods to be observed by employer and employee on termination.
13. The procedure to be followed on termination.
14. Any collective agreements governing the employee's conditions.
15. The social security institutions receiving contributions and any protection relating to social security provided by the employer.

Remuneration, working hours and probation particulars

Among these, remuneration, working hours and probation attract the most attention. The pay clause must state the initial basic salary, not merely a range, together with how and when it is paid. Working hours must reflect the normal schedule and the treatment of overtime. The probation clause must state both its duration and its conditions, because a vague or excessive probation term is one of the most common grounds on which a contract is challenged.

Notice, leave and collective agreements

Notice, leave and any applicable collective agreement complete the picture. The notice clause should mirror the statutory ladder under the Termination of Employment Law rather than attempt to undercut it. Paid annual leave must be stated. Where a sectoral or company collective agreement applies, it must be identified, because its terms can supplement or improve on the statutory floor.

What are the deadlines to give employees their written terms?

The written terms must be delivered in two tranches: the core terms within seven calendar days of the start of work, and the remaining terms within one month of commencement. Missing either deadline is a breach in its own right, regardless of whether the information is eventually supplied.

Core terms within seven calendar days

The core terms, meaning the parties, the place of work, the job title, the start date and any fixed end date, the probationary period, the remuneration, the working hours and any variable-schedule details, must be provided before employment starts or, at the latest, within seven calendar days. Because seven days is short, the practical solution most employers adopt is to have the signed contract ready on or before day one.

Remaining terms within one month

The remaining items, including training entitlements, paid leave, the notice periods and termination procedure, the applicable collective agreements and the social security bodies, must be delivered within one month of the employee starting. Where all 15 items are captured in a single contract signed at the outset, both deadlines are met at once, which is why a consolidated written contract is the safest approach.

How long can a probationary period be in Cyprus?

A probationary period in Cyprus cannot exceed six months under Law 25(I)/2023. This is a significant reduction from the previous position, under which probation could run for as long as two years, and it means older template contracts carrying a 24-month probation clause are now unlawful and must be revised.

The six-month cap and the director exception

The six-month cap is the general rule, but it does not apply to employees who are directors of the employer. For that limited category, a longer probationary arrangement can be justified. Because the exception is narrow and its precise wording matters, employers should confirm the director or senior-officer carve-out against the statute before relying on it for a specific individual rather than assuming a general management exemption.

Probation on fixed-term contracts

Where the contract is fixed-term, the probationary period must be proportionate to the expected duration of the contract. A six-month probation attached to a nine-month engagement, for example, would be difficult to defend as proportionate. The safer course on short fixed-term contracts is to scale probation down so that it is a modest fraction of the overall term.

Can an employer stop an employee working a second job?

Generally, no. Law 25(I)/2023 gives employees a right to parallel employment: an employer may not prohibit a worker from taking up employment with another employer outside the agreed working schedule, nor treat the employee adversely for doing so.

The parallel-employment right

The parallel-employment right reverses the old assumption that an employer could freely insert a blanket exclusivity clause. A clause purporting to ban all outside work, without more, is now unenforceable. Employees are free to hold a second job in their own time, and any detriment imposed because of it (for example, denial of a promotion) can itself be challenged.

When a restriction is lawful (objective grounds)

A restriction is only lawful where it is proportionate and based on objective grounds. Recognised grounds include health and safety, the protection of business confidentiality and trade secrets, the avoidance of conflicts of interest, and the integrity of the public service. An employer wanting to limit outside work must therefore tie the restriction to a specific, justifiable interest rather than rely on a general prohibition.

What rules apply to on-demand and unpredictable work?

On-demand and unpredictable work is subject to minimum predictability safeguards. Where the work pattern is unpredictable, the employer must specify the reference hours and days within which the employee may be required to work and the minimum notice before an assignment, and the volume of genuinely on-demand work is limited.

Minimum predictability of work

For genuinely on-demand arrangements, the Law imposes ceilings so that the model cannot be used to keep staff permanently on call. On-demand work is restricted to no more than eight weeks per calendar year, with a maximum continuous period of three weeks, or alternatively not more than five hours per week. Beyond those limits the relationship is treated as ordinary employment with the corresponding predictability.

Requesting a more predictable form of employment after six months

After six months of employment and a completed probation, an employee may request a form of employment with more predictable and secure conditions, for example a move from variable hours to a fixed schedule. The employer is not obliged to grant the request, but it must give a justified written reply within the statutory timeframe. A silent refusal is itself a breach.

Is mandatory training free for the employee?

Yes. Where training is required by law or by a collective agreement for the employee to perform the work, the employer must provide it free of charge, and the time spent counts as working time.

Training as working time

Because mandatory training is working time, it should as far as possible take place during normal hours and cannot be charged back to the employee or treated as unpaid. This matters for onboarding, compliance and safety training in regulated sectors, where the cost and the time must sit with the employer rather than the worker.

What notice period applies when ending a Cyprus contract?

Statutory minimum notice on termination is set by the Termination of Employment Law and rises with length of service, from one week for the shortest qualifying employment to a maximum of eight weeks for the longest-serving staff. Pay in lieu of notice is permitted, and employees still on probation are generally not entitled to notice at all.

Statutory notice by length of service

The statutory ladder increases with completed weeks of continuous service:

These are minimums. A contract or collective agreement may provide for longer notice, and the notice interacts with separate statutory redundancy entitlements, which are addressed alongside the rules on redundancy and unfair dismissal in Cyprus.

Notice during probation

Employees who are still within their probationary period are generally not entitled to statutory notice, which is one of the main reasons probation is used. That said, dismissing during probation does not license arbitrary or discriminatory treatment, and the probation clause must itself be valid and within the six-month cap for the exemption to hold.

How do employers submit employment terms through ERGANI?

Employers submit and record employment information through the ERGANI information system operated by the Ministry of Labour and Social Insurance. For the transitional population of existing employees, employers were required to submit their essential employment terms through ERGANI between 2 January 2025 and 28 February 2025.

The submission window and record-keeping duty

Beyond that one-off window, the enduring obligation is to keep the written terms current and to retain proof that they were delivered to and received by each employee. Employers should confirm the ERGANI submission requirements in force for new 2026 hires under the applicable Ministerial Decree, as the electronic filing framework continues to evolve, and in all cases keep dated evidence of delivery, because in a later dispute that evidence is what protects the employer.

What are the penalties for a non-compliant contract?

Failure to comply with Law 25(I)/2023 is a criminal offence, exposing the employer to fines and, for certain conduct introduced by 2024 amendments, potential imprisonment. Enforcement sits with labour inspectors, and the burden of proof in related disputes lies on the employer.

Fines, criminal liability and inspector powers

On conviction, an employer that fails to provide the written terms can face a fine reported at up to around 5,500 euros. Amendments in 2024 added further offences, in particular obstructing inspectors, carrying heavier penalties reported at up to 10,000 euros and/or imprisonment of up to six months. Because secondary sources cite slightly different ceilings for different offences, the exact figure applicable to a specific breach should be confirmed against the consolidated statutory text before advising.

Burden of proof on the employer

In any later dispute over unfair treatment or dismissal connected to these rights, the burden of proof rests on the employer, not the employee. If an employee alleges, for example, that they were penalised for taking a second job or for requesting more predictable work, it is the employer who must prove the treatment had a lawful, objective basis. This reversal makes accurate contracts and contemporaneous records essential.

Employment contract compliance checklist for 2026

A 2026-ready Cyprus employment contract should capture all 15 mandatory items, respect the seven-day and one-month deadlines, cap probation at six months, and reflect the current minimum wage and social contribution position. Building the pay and deduction figures in correctly is as important as the drafting itself.

Minimum wage and social contributions to reflect

From 1 January 2026, following the Council of Ministers decision of 23 December 2025, the national minimum wage is 979 euros gross per month on recruitment, rising to 1,088 euros gross after six months of continuous employment with the same employer. Hotel, domestic, agricultural and maritime workers are excluded from this general minimum. Contracts should also reflect statutory deductions, including social insurance and General Healthcare System (GHS) contributions. To sense-check take-home pay against these figures, you can estimate net pay with the Cyprus salary calculator.

The minimum figures for a standard 2026 contract are:

Common drafting mistakes to avoid

The recurring errors we see are: retaining an old 24-month probation clause instead of the six-month cap; using a blanket exclusivity clause that breaches the parallel-employment right; stating a salary range rather than a fixed initial figure; omitting the social security and GHS bodies; and failing to keep dated proof of delivery. Cross-border hiring adds further layers, whether that means work permits for non-EU employees and long-term residency and the right to work in Cyprus, the tax treatment of employee share option plans and their 8% tax treatment, or the structural question of choosing between an employer of record, branch or subsidiary to hire in Cyprus.

How Philippou Law Firm can help

Our employment team drafts and reviews Cyprus employment contracts that satisfy Law 25(I)/2023 in full, from the 15 mandatory particulars and delivery deadlines to probation, parallel-employment and predictability clauses that will withstand inspection. We advise employers on ERGANI compliance, notice and termination strategy, and the payroll and social insurance figures that must feed into every 2026 contract, and we support HR teams building compliant onboarding templates at scale. If you are hiring in Cyprus or updating legacy contracts, contact us for a contract review tailored to your workforce.