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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-2024-5/3858 – measures in Cyprus

Framework for the employment of foreign workers 2025

Πλαίσιο εργοδότησης αλλοδαπών εργαζομένων 2025

Country Cyprus , applies nationwide
Time period Open ended, started on 01 February 2024
Context Labour Migration Management
Type Other initiatives or policies
Category Protection of workers, adaptation of workplace
– Labour market testing policies
Author Loucas Antoniou (INEK) and Eurofound
Measure added 30 April 2025 (updated 09 June 2025)

Background information

The aim of the Framework is the better regulation of the employment of Third Country Nationals (TCNs) in the labour market ensuring: (1) the equal treatment of workers, respect of working rights and improvement of labour relations, (2) the formulation of conditions for full employment and the covering of the additional staffing of the labour market, (3) the growth of the economy, improvement of the terms of employment and support of adequate wages, (4) the rational support of the production process in all sectors of the economy and (5) the respect of the Industrial Code provisions supporting the triparty collaboration. The Framework is regulated by the Aliens and Immigration Laws (Chapter 105 & L.7(I)2019) and the related regulations and decisions of the Council of Ministers, the Migration Ministerial Committee, the commitments of the Republic against the World Trade Organization (WTO) and the EU agreements contracted with third countries.

Content of measure

The criteria of the Framework are applied for the employment of TCNs in the Cypriot and EU enterprises and organisations excluding: (1) partners of Cypriot or EU citizens, (2) recognised refugees, beneficiaries of subsidiary protection or asylum seekers, (3) migrants ensured migration permit and long-term residency, (4) migrants with temporary work and residence permit including students, household workers, seasonal workers, athletes, workers in diplomatic missions and (5) migrants having any residence permit with the right to live and work in the Republic without any restrictions in the labour market.

The main criterion for the concession of approval of the employment of TCNs is the proved inability of employers to cover their needs of employment from the local, EU and legally residing labour force. The other criteria are related with the organisation and sustainability of enterprises, including: (1) the possession of active operating licence, employer’s liability insurance that are registered in the Social Insurances Services, (2) appropriately staffed with domestic or EU workforce or long-term residences, excluding enterprises in the agricultural sector, (3) obligations to the state in regards to social insurances and taxation are settled, (4) has not been convicted or subjected to administrative sanctions for the violation of the labour law or/and illegal employment of TCNs, (5) to apply a collective agreement or provide equivalent terms of employment with the domestic staff and (6) have not dismissed staff on grounds of redundancy in the last 8 months.

The Framework also provides quotas on the percentage of TCNs that an enterprise is allowed to employ, which is set to 30% of the mean of employment of the enterprise over the last 3 months. Exceptions from quotas are provided in 14 categories of enterprises that are allowed either to employ TCN by 100% (i.e. agricultural sector, waste collection and recycling) or 75% (i.e. abattoirs, car washing enterprises and food delivery).

Use of measure

The Framework is recently formulated and currently there are not assessments on the use of the measure.

Target groups

Workers Businesses Citizens
Migrants or refugees in employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
No special funding required

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 Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

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

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The process for the establishment of the Framework was led by the Minister of Labour, who invited the social partners – trade unions and the employers’ organisations – to participate in the dialogue. Many disagreements and different viewpoints have been expressed during the dialogue process for the establishment of the Framework by the social partners but the final outcome is a product of consensus among them. A Triparty Advisory Committee has been established for the monitoring of the implementation of the criteria of the framework. According to the provisions of the Framework, the members of the Committee shall be informed and express their opinions in an advisory capacity for the in-coming applications of employment of TCNs by enterprises and the submission and investigation of complains. The Director of the Department of Labour, of the Ministry of Labour and Social Insurances is responsible to inform the Committee with regular intervals for the total number of approvals of TCNs for every employer indicating the corresponding labour market sector and the district of operation of the enterprise.

Views and reactions

Despite the different viewpoints expressed during the process for the establishment of the Framework, trade unions and employers’ organisations appear more or less satisfied with the final agreement. However, critics have been expressed by trade unions after the agreement on the deduction of the salary of TCNs for the cases that housing is provided by employers, which is set to 25% and considered very high.

Sources

  • 01 February 2024: Πλαίσιο εργοδότησης αλλοδαπών εργαζομένων 2025 (www.mlsi.gov.cy)

Citation

Eurofound (2025), Framework for the employment of foreign workers 2025, measure CY-2024-5/3858 (measures in Cyprus), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CY-2024-5_3858.html

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