Private Employment Agency-License Issue
The establishment and operation of private employment agencies is regulated by the Private Employment Agency Laws 2012-2023.
Any legal or natural person who acts as a mediator for employment of persons available for work, for the purpose of either direct or indirect pay / fee / material gain / other charges or without charge, need to obtain a License for the operation of such an establishment from the competent authority which is the Director of the Department of Labour of the Ministry of Labour and Social Insurance. The Law also applies to any legal or natural person carrying out procedures related to the legalization of the entry, residence & employment of third-country nationals entering the Republic for employment.
Eligibility Criteria
According to the above law, in order to obtain a License to operate a Private Employment Agency the following conditions must be fulfilled by the applicant:
(a) Citizenship
· In the case where the agency is managed by a natural person, the person must be a citizen of the Republic of Cyprus or a Member State of the European Union.
· The person responsible for the operation of the Agency must be a citizen of the Republic of Cyprus or a Member State of the European Union.
(b) Legal Status
In the case where the agency is managed by a legal person, the person must be incorporated according to the relevant legislation of the Republic, must have registered offices in Cyprus and must not have been under compulsory liquidation or winding-up order.
(c) Criminal situation / other criteria
The person responsible for the operation of the Agency, the Directors in case of Company or the partners in case of Partnership,
· Must not have been sentenced for a serious offence as mentioned in the article 6 of the Law including an offence in violation of the provisions of the Aliens and Immigrations Laws and Regulations.
· Must not have been employed in certain Governmental Departments in Cyprus the last two (2) years according to the article 6 of the Law.
· Must not perform the parallel activities described in article 20 of the Law.
(d) Qualifications and relevant experience
The person responsible for the operation of the Agency must hold one of the following:
a) A recognized diploma, degree or university title in one of the subjects mentioned in the article 8 of the Law.
b) A recognized diploma, degree or university title in subject other than those mentioned in the article 8 of the Law and Master degree in one of the subjects mentioned in the article 8.
c) A recognized diploma, degree, university title or master degree in subject other than those mentioned in the article 8 and has attended a training program related to employment / labour law organized by the competent authority.
d) A secondary education certificate and Certificates of Participation & Achievement to the training program related to employment / labour law organized by the competent authority. It is noted that the Certificate of Success in the written exam is valid for a period of two (2) years from the date of its issuance.
When the Agency is dealing with the recruitment of managerial / professional personnel then the person responsible for the operation of the Agency must hold a university degree as mentioned in a-c above or in case of (d) have three (3) years of relevant experience in the placement of managerial / professional personnel.
Payable Fees
According to the Private Employment Agencies Regulations of 2012, the payable fees are:
- For the application for the first issue of a license €100
- For the first issue of the license €300
- For the renewal of the license €300
- For a copy of a license €100
The authorization procedure is carried out within three (3) months. The period starts from the time of submission of all documents.
Obligations and Supervision
The operation of a Private Employment Agency without a relevant license issued from the Director of the Labour Department, of the Ministry of Labour and Social Insurance, is prohibited and is punishable by Law.
Within six (6) months from the date of issue of the initial license, Private Employment Agency must have the necessary building infrastructure consisting of professional offices of at least 30m2 as well as the necessary technical equipment.
The license of the private Employment Agency is valid for a three-year period, from the date of issue, and is renewed automatically with the payment of the fee specified in the Regulations.
The license’s holder must notify in writing (within one month) the competent authority for any substantial change in the information provided (i.e. change of address, change of the person responsible for the operation of the Agency).
The license to operate as a Private Employment Agency must be posted in a conspicuous place in the establishment.
A sign with the Private Employment Agency’s name and license number must be posted in a conspicuous place outside the building.
The Private Employment Agency’s license number must be posted in case the agency maintains a website on the internet.
Record Keeping
Private Employment Agency must keep for at least five (5) years proper records (document & electronic records) according to Regulation 13.
Provision of Quality Services
Private employment agencies must take all the necessary actions in order to provide quality services as follows:
· evaluate the qualifications and abilities of the prospective employee;
· evaluate the job position to be filled and inform the prospective employee, accurately, about the subject of the work he will be asked to perform as well as the required qualifications.
· fully inform the prospective employee of the exact content and terms of the employment contract he is about to enter into.
· provide all information to the prospective employee regarding job search according to his specialty and work experience;
· fully and accurately inform the prospective employer of the qualifications, abilities and work experience of the prospective employee;
· inform the prospective employee, as well as the prospective employer, of their rights and obligations in accordance with the basic provisions of labour legislation.
Restrictions in the activities of the Private Employment Agency
The Private Employment Agency is not allowed to:
a) Promote applicants without written instructions of good faith from the employer
b) Provide wrong information as regards the terms and conditions of employment and the qualifications of the applicant
c) Promote the employment of a person in a workplace in which its current employees are on strike.
d) Promote the employment of young persons (under 18 years of age)
e) Retain travel documents or any other personal documents related to the legalization of employment of persons.
Protections of Wages
The Private Employment Agency shall not impose any direct or indirect charge/fee on the employee for the purpose of job search, placement and maintenance of employment. Moreover, the private employment agency is not allowed to receive the remuneration of the employee on his behalf even if the employee gives such consent.
Administrative and Criminal Sanctions
Any person who violates or disobeys specific provisions of the Law according to article 29, is guilty of a criminal offence and is liable to imprisonment not exceeding (1) year or to a fine not exceeding €10.000 or both penalties.
Moreover when the competent authority finds that the Agency violates or disobeys the provisions of the Law, it may impose an administrative fine not exceeding €2.500 and/or suspend the operation of the agency.
Revocation of the License
The competent authority may revoke a private employment agency license in case:
· the person responsible for the operation of the office or any of the Directors in case of company or any of the Partners in case of partnership, has been convicted for an offense as mentioned in the article 6.
· the owner of the license is declared bankrupt
· the owner of the license has prepared a forged document
· the owner of the license has died
· during inspection is found that the provisions of the license are violated and the owner of the license cannot or refuses to comply with the suggestions of the competent authority.
· The owner of the license refuses to submit the documents requested by the Inspectors.
· The owner of the license has violated any provision of applicable legislation, regulations, ordinances or directives issued relating to aliens and immigration.
WEBSITE PREAS-EN-2024