European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure CY-1962-1/2735 – measures in Cyprus

Department of Labour Relations

Τμήμα Εργασιακών Σχέσεων

Country Cyprus , applies nationwide
Time period Open ended, started on 02 January 1962
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Protection of workers, adaptation of workplace
– Changes in work organisation
Author Loucas Antoniou (INEK) and Eurofound
Measure added 11 July 2022 (updated 17 November 2022)

Background information

The Department of Labour Relations is the sole governmental authority entrusted with the prevention and settlement of industrial disputes, including the provision of assistance to enterprises for the development and effective functioning of mechanisms for collective bargaining, mutual agreements, and the settlement of personal complaints. The Department covers all economic activities of the private sector, as well as activities of state-owned enterprises and organisations. The services of the department can be requested jointly or separately by employers and employees, independently of the size of the enterprise.

Content of measure

The principal mission of the department of labour relations is to safeguard industrial peace and ensure the preservation of healthy and balanced industrial relations structures. Within its mission, the department undertakes mediation tasks in the event of industrial disputes, including redundancies if the involved parties failed to reach an agreement. In this respect the department may:

  • facilitate the conclusion of an agreement leading to reduced redundancies as initially pursued by the employer;

  • facilitate the conclusion of additional redundancy compensation to affected employees (over and above the provisions of the Termination of Employment Law for redundancy compensations payable by the redundancy fund).

Use of measure

The Department of Labour Relations is an effective mediating instrument, as it is annually mediating in hundreds of industrial disputes. In 2018, for example, the department was called to mediate 273 disputes affecting 28,669 employees and in 2020 in 341 disputes affecting 32201 employees. However, the department does not produce diversified statistics, as to whether the disputes concerned are redundancies or other industrial relations issues.

The mediation by the Department in redundancy disputes may result in additional payments to be made by the employer to the redundant employee(s), beyond those payable by the Redundancy Fund. The involvement of the department may also lead to a reduction of the number of redundancies.

Target groups

Workers Businesses Citizens
Employees in standard employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Unknown


Social partners had no involvement in the design and do not have any engagement in the monitoring of the measure, but they are involved in the implementation of the measure. The measure is part of the mediation services of the Department of Labour Relations, which is a governmental institution and as such is not subjected to any designing or monitoring processes involving social partners. Social partners may request jointly or separately the mediation of the Department in redundancies related disputes and thereafter participate in a mediation procedure in good faith. Social partners are only involved in the implementation of the measure.

Views and reactions



  • 02 January 1962: Ministry of Labour, Welfare and Social Insurance - Department of Labour Relations (
  • 15 November 2022: Labour Disputes and Work Stoppages (2002 – 2021 (


Eurofound (2022), Department of Labour Relations, measure CY-1962-1/2735 (measures in Cyprus), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.