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COVID-19 EU PolicyWatch

Database of national-level responses

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

Factsheet for case CY-2020-12/330 – measures in Cyprus

Special scheme for partial suspension of business

Ειδικό σχέδιο μερικής αναστολής εργασιών επιχείρισης

Country Cyprus , applies nationwide
Time period Temporary, 16 March 2020 – 12 June 2020
Type Legislations or other statutory regulations
Category Employment protection and retention
– Income support for people in employment (e.g. short-time work)
Author Loucas Antoniou (INEK) and Eurofound
Case created 07 April 2020 (updated 06 May 2020)

Background information

The Scheme addresses businesses who have partially suspended their operation, whose turnover declined more than 25% in March 2020 due to the Coronavirus Pandemic and are projecting a corresponding drop for April 2020, as compared to the corresponding months of the previous year. For business that were not active in the previous year, the basis of comparison will be the months proceeding March 2020. The Scheme is in accordance with Decree 131 of the Quarantine Law, Chapter 260 of the Ministry of Health.

On Wednesday 8 April, the President of the Republic announced the decision of the Cabinet to extent the measure up until 12 June 2020. Currently, the Ministry of Labour undertakes a legal and technical processing of the measure.

Content of measure

The basic requirement for participation in the Scheme is that no employee has been fired. Business participating, in addition, should not dismiss any employee during the participating period, during an additional month equal to the period of participation and plus one additional month.

Businesses up to 50 employees may join the Scheme by declaring the 75% of their total number of employees to receive the special unemployment benefit. Similarly, businesses employing more than 50 employees may declare 60% of their total number of employees.

The maximum amount for a period of a month may not exceed 1,214 euros.

On the 23 April 2020, the Cabinet amended the calculation of the payable amount to the beneficiaries in order to support as many employees as possible. The insurable earnings of the year 2018 will be taken into account, but in addition, a comparison will be made based on the declared salary of January 2020. The payable amount will be the highest amount that results from this comparison.

Additionally, a minimum payable amount of €356 has been defined for beneficiaries. Also, a special plan will be implemented for employees who first started work in February and March 2020.

An additional amendment to the Scheme is the inclusion of persons over 65 years of age who do not receive statutory pension and continue to work.

Use of measure

Currently, there is not an estimation for the beneficiaries of the scheme. The amount corresponding to the Scheme is 182 million euros covering also the scheme for the complete suspension of business, Decree 130 of the Quarantine Law, Chapter 260.

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
Social partners jointly
Trade unions
Company / Companies
Social insurance
National funds

Social partners

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

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Direct consultation outside a formal body Direct consultation outside a formal body

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

  • N/A
  • Main level of involvement: Peak or cross-sectoral level

Involvement

N/A

Views and reactions

The government has consulted the social partners - trade unions, employers' organizations and political parties - and the outcome emerged is on an agreed base.

Sources

  • 07 April 2020: Special scheme for the partial suspension of business (www.coronavirus.mlsi.gov.cy)
  • 23 April 2020: Τη λήψη επιπρόσθετων μέτρων στήριξης των εργαζομένων αποφάσισε το Υπουργικό Συμβούλιο (www.pio.gov.cy)

Citation

Eurofound (2020), Special scheme for partial suspension of business , case CY-2020-12/330 (measures in Cyprus), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

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