Purpose of the Law
The purpose of the Law No 63(I) of 2017 on the posting of workers in the framework of the provision of services is (a) the enactment of appropriate measures, provisions and monitoring mechanisms for the posting of workers in the framework of the provision of services including the imposing of sanctions and (b) to guarantee respect for an appropriate level of protection of the rights of posted workers for the cross-border provision of services in particular the enforcement of the terms and conditions of employment which provided in the section 7 of the relevant Law.
Situations Constituting a Posting
According to section 4 of the Law No 63(I) of 2017 on the posting of workers in the framework of the provision of services in the EU, the Law applies to undertakings which take one of the following transnational measures:
i. | Post a worker, on their account and under their direction, in the territory of Cyprus, under a contract concluded between the undertaking making the posting and the receiver of the services operating in Cyprus, provided there is an employment relationship between the sending undertaking and the worker, during the period of posting. |
ii. | Post a worker, in the territory of Cyprus, to an establishment or to an undertaking owned by the group to which the undertaking making the posting is a member, provided there is an employment relationship between the sending undertaking and the worker, during the period of posting. |
iii. | Act as a Temporary Employment Undertaking or placement agency to hire out a worker to a user undertaking established or operating in the territory of Cyprus provided there is an employment relationship between the temporary employment undertaking or the placement agency and the worker, during the period of posting. In case of chain posting the worker is considered as being posted by the temporary agency with which the worker has the employment relationship and the temporary agency must therefore comply with all the provisions of the said Law. |
The Law does not apply to merchant shipping companies in respect of workers on seagoing vessels.
Cumulative Duration of the Posting Periods of the Individual Posted Workers
Where an undertaking as referred to section 4 of the Law replaces a posted worker by another posted worker performing the same task at the same place (is examined taking into consideration, inter alia, the nature of the service to be provided, the work to be performed and the address(es) of the workplace) , the duration of the posting shall, be cumulative duration of the posting periods of the individual posted workers concerned.
Posted Workers - Terms of Employment
The Undertakings which are referred to section 4 of the relevant law guarantee workers posted in the territory of Cyprus the terms of employment which are provided by Cyprus law and/ or by collective agreement. Regarding collective agreement insofar as they concern the activities referred to in the Annex of the Law.
The terms of employment which the undertakings must provide to the posted workers according to the section 7, refer to:
• | Remuneration (including minimum wage and overtime rates) this point does not apply to supplementary occupational retirement pension schemes; |
• | Annual Leaves |
• | Work periods |
• | Health, safety and hygiene at work |
• | Protection of children, young persons and pregnant women at work |
• | Equality and non- discrimination |
• | The conditions of workers’ accommodation where provided by the employer to workers away from their regular place of work |
• | Allowances or reimbursement of expenditure to cover travel, board and lodging expenses for workers away from home for professional reasons. This shall apply exclusively to travel, board and lodging expenditure incurred by posted workers where they are required to travel to and from their regular place of work in the territory of Cyprus to whose territory they are posted, or where they are temporarily sent by their employer from that regular place of work to another place of work |
Long Term Posting
Where the effective duration of a posting exceeds 12 months in the territory of Cyprus, the undertakings provided for in section 4 of the Law continue to guarantee to the posted workers in the territory of the Republic all the applicable working and employment conditions laid down in the territory of the Republic in which the work is provided/performed as provided for in subsection (1) of section 7, irrespective of which law applies to the employment relationship and according to principle of equal treatment.
This does not apply to the following matters:
(a) | procedures, formalities and conditions of the conclusion and termination of the employment contract, including non-competition clauses; |
(b) | supplementary occupational retirement pension schemes. |
Where the service provider extends the effective duration of a posting to 18 months shall submit to the competent authority a motivated notification.
Legal Basis
More info:
European Commission
☉ Administrative Measures to Monitor the Application of the Law |
☉ Appointment of Inspectors for Monitoring the Application of the Relevant Law |
☉ Administrative and Criminal Sanctions |
☉ Mutual Assistance Through the IMI System |