Employment Contracts in Cyprus: What Every Employer Must Include

Why Your Employment Contract Is Your First Line of Legal Defence

An employment contract is not just paperwork. Under Cyprus Law 25(I)/2023 (Transparent and Predictable Working Conditions Law), every employer in Cyprus must provide employees with written terms of employment. Failure to comply exposes your business to labour disputes, fines from the Department of Labour, and costly litigation.

Since December 2024, Cyprus employers are also required to register employee terms electronically through the ERGANI information system — making compliance both a legal and administrative obligation.

Here is exactly what your employment contract must contain.

The 11 Mandatory Clauses Under Cyprus Law

1. Identification of Both Parties

Full legal name, address, and registration details of the employer. Employee's full name and ID details. This sounds basic — but errors here can invalidate clauses in a dispute.

2. Job Title and Description

Avoid vague job descriptions. If the role changes significantly without a contract amendment, you may face claims of unilateral contract variation.

3. Place of Work

State the primary workplace address. If remote or hybrid work is permitted, this must be stated explicitly. With remote work now standard across many industries, this clause is increasingly scrutinised in disputes.

4. Commencement Date and Duration

Fixed-term contracts that are repeatedly renewed without justification can be treated as permanent contracts under Cyprus law.

5. Probationary Period

Cyprus law permits probationary periods but they must be explicitly written into the contract. Industry norms typically range from 1 to 6 months. During probation, shorter notice periods generally apply.

6. Working Hours

The standard legal working week in Cyprus is 38-40 hours. Overtime must be documented and compensated according to applicable collective agreements or statutory minimums.

7. Salary and Benefits

The contract must clearly state:

Never agree verbally on bonuses without writing them into the contract. Verbal commitments create enforceable obligations under Cyprus law.

8. Annual Leave and Public Holidays

Cyprus employees are entitled to a minimum of 20 days paid annual leave per year (under the Annual Paid Leave Law). The contract must confirm:

9. Notice Period

Both employer and employee notice periods must be stated. Statutory minimums apply based on length of service, but contractual notice can exceed these. Common practice is 1 month notice for professional roles.

10. Social Security and Collective Agreements

The contract must reference applicable social insurance contributions and any collective bargaining agreements that apply to the role or sector.

11. Confidentiality and Restrictive Covenants

For most professional roles you should also include:

Note: Restrictive covenants must be reasonable in scope, duration, and geography to be enforceable in Cyprus courts. A 2-year, worldwide non-compete for a junior employee will not hold up.

The ERGANI Requirement (Since January 2025)

Under Decree KΔΠ 455/2024, all Cyprus employers must register employee essential terms through the ERGANI platform. This is administered by the Ministry of Labour and Social Insurance.

If you hired employees before January 2025 and have not registered their terms, you were required to do so by 28 February 2025. Outstanding registrations should be completed immediately to avoid penalties.

The Most Common (and Costly) Contract Mistakes

Mistake 1 — No written contract at all

Some employers still rely on verbal agreements. This is legal exposure. Without a written contract, disputes default to statutory minimums — which may far exceed what you intended to offer.

Mistake 2 — Using a generic online template

A template downloaded from a UK or US website does not reflect Cyprus law. Minimum leave entitlements, social insurance references, and termination rules differ significantly.

Mistake 3 — No clause for remote or hybrid work

Post-pandemic, many employees work remotely without this being documented. If an employee is injured while working from home and the contract is silent on remote work, liability questions become complex.

Mistake 4 — Vague salary clauses

"Salary to be agreed" or "competitive compensation" has no legal standing. Always state the gross monthly figure.

Mistake 5 — Unenforceable non-compete clauses

Broad non-compete clauses are frequently struck down by Cyprus courts. They must be narrowly tailored to protect a legitimate business interest.

What Happens If You Get It Wrong

Protect Your Business Before You Hire

Getting employment contracts right from the start is significantly cheaper than fixing them after a dispute. A professionally drafted Cyprus-compliant employment contract typically covers all mandatory clauses, protects your confidential information, and includes enforceable restrictive covenants tailored to your industry.

Need a Cyprus-compliant employment contract? Our legal experts draft employment agreements customised to your business, your industry, and your team — delivered in 24–72 hours.