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Cyprus: Labour Regulation

Regulatory Environment

Before 2004, labour regulations in Cyprus were very light. Since then, with the implementation of the EU acquis communautaire, Cyprus has fallen in line with the other EU members and implemented substantial labour laws.

In the past, much pay-bargaining was carried out directly between employers and employees. However there has also been some collective bargaining between trade unions and employers' organizations, and the Government has been known to take part in tripartite resolution of disputes.

In the last decade, however, something has gone very wrong. The number of man-days lost in the previous decade was around 70 per 1,000 employees. During the financial crisis, this shot up, and reached a staggering 514 days lost in 2013, three times as high as the next highest country, France.

The austerity imposed on Cyprus and the lack of funds generally available have been large contributory factors in this situation. The building, banking and manufacturing sectors have been particularly hard-hit.



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