In an effort to enhance transparency and ensure compliance with legislative provisions, two significant changes have recently come into effect in Cyprus.
On December 20th, 2024, The Transparent and Predictable Terms of Employment (Essential Terms of Employment for Registration in an Electronic System) Decree of 2024 was published, under the Transparent and Predictable Working Conditions Law of 2023 (Law 25(I)/2023). According to this decree, employers in the private sector are required to submit the essential employment terms for their employees in the ‘ERGANI’ information system of the Social Insurance Department. Registration must be completed between January 2nd, 2025 and February 28th, 2025. The information to be registered includes, inter alia, employee and employer details, employer’s registered office, employee job descriptions, remuneration, working hours, annual leave etc.
Additionally, following the publication of the Social Insurance (Amendment)(No.3) Law of 2024 on the 15th of November 2024, stricter penalties have been introduced regarding undeclared work. Specifically, if an inspector detects a case of undeclared employment, the employer will be subject to an administrative fine of €1,000 per employee, doubling the previous €500 fine. Moreover, for each month or part thereof preceding the detection of undeclared work, an additional fine of €500 will be imposed.
A second violation by the same employer within two years of the first offense will result in an increased fine of €2,000. For third and subsequent violations, the fine will further increase to €3,000.
At Christys & Co LLC, Advocates and Legal Consultants, our employment law team can assist employers in complying with the new requirements and preparing the necessary information for registration in the ERGANI portal within the designated deadline.
