10.6092/issn.1561-8048/10955
The Cypriot government has enforced a strict lockdown with a wide restriction on the freedom of movement of individuals, school closures and the suspension of all non-essential business operations. Extraordinary measures were adopted to deal with the emergency challenges on the economy and the labour market, including the protection of jobs by compensating the costs of wages and the provision of special allowances to self-employed persons and working parents.
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1561-8048
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Christiana Cleridou
Italian Labour Law e-Journal
Job retention
COVID-19 and Labour Law: Cyprus
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National Reports
2020-05-11
2020-05-09
2020-04-15
2020-09-15
ILLeJ
Christiana Cleridou
2020/05/11
10.6092/issn.1561-8048/10955
University of Cyprus
1561-8048
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Job retention
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COVID-19 and Labour Law: Cyprus
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COVID-19 and Labour Law: Cyprus                                                     Italian Labour Law e-Journal
Christiana Cleridou                                                                Special Issue 1, Vol. 13 (2020)
christiana.cleridou@gmail.com                                        Covid-19 and Labour Law. A Global Review
                                                                                                 ISSN 1561-8048
                                                                  https://doi.org/10.6092/issn.1561-8048/10955




                  COVID-19 and Labour Law: Cyprus
                       Christiana Cleridou*
                                                  Abstract
     The Cypriot government has enforced a strict lockdown with a wide restriction on the
     freedom of movement of individuals, school closures and the suspension of all non-essential
     business operations. Extraordinary measures were adopted to deal with the emergency
     challenges on the economy and the labour market, including the protection of jobs by
     compensating the costs of wages and the provision of special allowances to self-employed
     persons and working parents.
     Keywords: Covid-19; Labour Law; Child-care; Remote work; Sickness allowance; Health and
     Safety; Unemployment benefits; Job retention.




 1. General Framework

    The Cypriot government, upon consultation with an expert epidemiological committee,
 and based on the Quarantine Law1 started adopting restrictive measures at the beginning of
 March 2020. These measures have been enforced through decrees issued by the Minister of
 Health2 , have been re-evaluated and have gradually become stricter and more restrictive.
    The first measures which were adopted at an early stage of the COVID-19 spread
 imposed social distancing and included the prohibition of gathering of more than 75
 people in closed areas, the cancellation of events, the organization sporting events without
 spectators3 and the closure of borders to all non-Cypriot citizens and non-resident
 foreigners4. From 15th of March5 all non-essential business operations have been
 suspended6.
    With the increase on the number of the confirmed coronavirus infection cases
 nationally, new more restrictive measures were introduced. All unnecessary movement was



 *
   LLB, LLM, MA, PhD, Barrister at Law in Cyprus, Special Academic Staff- Department of Law, University
 of Cyprus.
 1 The Quarantine Law Cap.260, as amended in 2003 and 2020.
 2 20 Quarantine (Establishing Measures for preventing the spread of coronavirus COVID-19) Decrees were

 issued by the Minister of Health from 11th March up until 30th April 2020.
 3 Quarantine Decree […] (No.1) of 2020 dated 11th March 2020 (ΚΔΠ 90/2020).
 4 According to Quarantine Decree […] (No.3) of 2020 dated 15th March 2020 individuals who are authorized

 to enter Cyprus must submit a medical certificate from a doctor of the country of origin to prove that they do
 not have COVID-19 and must be placed under mandatory 14-day quarantine at accommodation facilities
 provided by the government.
 5 Ibid.
 6 Only supermarkets, pharmacies, private health services, bakeries, kiosks and gas stations remained open.
 Christiana Cleridou                                                               Italian Labour Law e-Journal
                                                                                  Special Issue 1, Vol. 13 (2020)
                                                                     Covid-19 and Labour Law. A Global Review
                                                                                       Section: National Reports




banned. except for eight7 specific reasons, night-time curfew was enforced 8, schools and
universities were closed and sporting events were cancelled. These draconian measures
severely restricted the freedom of movement of persons to one essential daily trip outside
their residence, which needed to be approved via a mobile text message and also affected
the freedom to conduct business.
   The impact of the two-month shutdown on the economy and labour market remains to
be seen as the 4th May 2020 marks the first stage on the relaxation of the measures by
opening up the economy 9and lifting restrictions on free movement10.


2. Government measures taken for the protection of labour

   On 27th March 2020 new legislation (Law 27(I)/2020)11 was adopted authorizing the
Minister of Labour Welfare and Social Insurance to take extraordinary measures to deal
with the COVID-19 pandemic. Accordingly, the Minister of Labour with decisions12
published in the Official Gazette of the Republic, has set out the conditions, the amount
and the way of providing special sickness allowance13, special leave for the care of
children14 and special unemployment allowance15 and has issued special schemes aiming to
protect employees and which specify the beneficiaries, the manner and all the conditions
for the provision of the special schemes16.


a) Special sickness allowance

   In order to support employees in the private sector and self-employed persons who are
absent from work due to health reasons, a special sickness allowance is paid17 provided that


7 These reasons are: going to work, purchasing supplies, visiting doctor and pharmacy, going to a bank if an

online transaction is not possible, providing assistance to vulnerable groups, first degree relatives attending
funerals, weddings or baptisms provided that they do not exceed 10 people in total, exercising and walking a
dog for up to two people maximum and restricted to the area around their residence.
8 According to the provisions of Quarantine […] Decree (No.12 ) of 2020 dated 30th March 2020 (KΔΠ

135/2020)a prior permit issued by the police via its reply to the SMS application is obligatory to every person
under 65 years old while only one exit from one’s residence per day was allowed and none between 21.00-
6.00. In addition, everyone outside must carry their ID or passport and additional proof regarding their
business, whereas violators are fined on the spot.
9 The construction industry, retail shops and markets (no shopping malls) will reopen under strict social

distancing rules.
10 Three daily essential trips outside the residence.
11 The Extraordinary Measures taken by the Ministry of Labour, Welfare and Social Insurance Law to deal

with the pandemic of COVID-19 virus Law of 2020 (Law 27(I)/2020).
12 15 Decisions were issued by the Minister of Labour, Welfare and Social Insurance Health from the 28th

March until the 2nd May 2020.
13 Art.5 of Law 27(I)/2020.
14 Art.6 of Law 27(I)/2020.
15 Art.7 of Law 27(I)/2020.
16 Art.8 of Law 27(I)/2020.
17 Decision on the Special Sickness Allowance (No.10) of 2020 dated 2nd May 2020 (ΚΔΠ 185/2020).



https://doi.org/10.6092/issn.1561-8048/10955                                                                    2
     Christiana Cleridou                                                           Italian Labour Law e-Journal
                                                                                  Special Issue 1, Vol. 13 (2020)
                                                                     Covid-19 and Labour Law. A Global Review
                                                                                       Section: National Reports




the applicants have medical certificates18 and fall within specific categories19. For private
sector employees and self-employed persons, who qualify for insurance under the Social
Security Act, the allowance is at 60% of the value of the insurance units, whereas if they do
not qualify different calculations are made. In any case, the maximum amount that can be
paid as a special sickness allowance for private sector employees and self-employed persons
is € 1,214 for a period of one month.


b) Special leave for childcare

    An allowance for a special leave for child care is paid to applicants who are working
parents at the private sector and who are responsible for the care of children up to 15 years
old and/or children with disabilities, regardless of age, whom, due to the nature of their
work, cannot work either remotely or at home or with flexible working hours and where
there is no in-house help20.
    The application should only be submitted by employees who are insured with the Social
Insurance Services in January 2020 and have a gross monthly salary of up to €2,500,
whereas the period for the special leave for child-care cannot exceed a 4-week period in
total, for both parents. If one parent receives this special leave, the other cannot receive it
for the same period21.
    However, three points should be highlighted. Firstly, the consent of the employer is
needed to qualify for the special child-care allowance. Secondly, the initial Ministerial
decision on the special leave for child-care issued on 28th March had no restrictions in
relation to whether the parent is working in the private or public sector. But the revised
decision differentiates between employees in the private sector and employees in the public
sector. This becomes even more problematic in view of a recent circular of the Ministry of
Finance according to which working parents in the public sector who are responsible for
children up to 15 years old and cannot work remotely should apply for a leave of absence22.
With schools and childcare facilities closed working parents face serious challenges to
combine working from home with care responsibilities. In addition, the burden of child-
care seems to be disproportionate for women, because women are the majority of the


18 Issued by the Ministry of Health or their personal doctor
19 These categories include people who: belong to vulnerable groups as defined by a relevant list of the
Ministry of Health; or are subject to compulsory isolation (quarantine) and self-isolation based on instructions
from the Ministry of Health; or are infected with COVID 19; or are aged 63-65 years and who do not receive
a statutory pension and are included in above categories.
20 Decision on Special Leave for the care of Children (No.9) dated 2nd May (ΚΔΠ 184/2020).
21 If one parent is working and the other is not (either because he/she receives an unemployment allowance

or a special unemployment allowance or sickness allowance or sickness allowance, either because he/ she is
unemployed or for any other similar reasons), the working parent is not entitled to a child care leave at that
time, unless the non-working parent has himself/ herself been infected with COVID 19 or is hospitalized or
is a person with a disability or he/she is under mandatory quarantine.
22 Ministry of Finance circular No. 1613 dated 30th April 2020 and titled: ‘Instructions for the operation of

public service and the broader public sector from 4/5/2020, in the context of the gradual lifting of the
measures taken to address the coronavirus’.

https://doi.org/10.6092/issn.1561-8048/10955                                                                    3
     Christiana Cleridou                                                       Italian Labour Law e-Journal
                                                                              Special Issue 1, Vol. 13 (2020)
                                                                 Covid-19 and Labour Law. A Global Review
                                                                                   Section: National Reports




primary child careers23. Women also represent the majority of employees in the public
sector in Cyprus24. Therefore, the current provisions affect disproportionately female
public sector employees, who are in effect excluded from applying for the special leave for
child-care.
   Finally, as a result of the COVID-19 pandemic the employees and employers have been
forced to rapidly adopt to new arrangements, which were not familiar in Cyprus, such as
remote working and teleworking. It remains to be seen whether these changes will have a
long-term impact on the way the labour market operates in Cyprus.


c) Special unemployment allowance

   According to the scheme of special allowance to support the unemployed persons, any
person who is registered as a regular unemployed person in the Registry of the Public
Employment Service and who has exhausted the right to receive unemployment benefit
payment either in February, or in March, or in April 2020, may be included in the scheme
for special unemployment allowance. This allowance is equal to € 360 for a period of one
month25.


d) Special schemes for job retention

   Based on Law 17(I)/2020 the Minister of Labour, Welfare and Social Insurance has
published a number of Decrees setting out different special schemes to support job
retention.
   A scheme providing for special allowance for the self-employed persons has been
adopted and applies to self-employed persons who have fully suspended their work in
compliance with the restrictive measures adopted by the Government due to the
coronavirus pandemic or who have partially suspended their work (reduction of up to 25%
of their turnover)26. The amount of this allowance is minimum €300 and maximum €900,
for a period of four weeks, whereas provisions are included for the calculation of the
amount based on social insurance contributions.
   Similar schemes were adopted for businesses which have fully suspended their
operations (reduction of more than 80% of their turnover) or partially suspended their




23  Pilavaki A., Cyprus: Economic Crisis and the Impact on Gender Equality, Gender Equality Committee for
Employment and Vocational Training, 2015, 45.
24 Ibid.
25 Decision on the Scheme of Special Allowance to support the Unemployed dated 2nd May 2020 (No 14) of

2020- (ΚΔΠ 189/2020).
26 Certain professions related to medical profession and supplies (i.e. Pharmacists) and covered under

statutory pension are not included in this scheme.

https://doi.org/10.6092/issn.1561-8048/10955                                                                4
 Christiana Cleridou                                                             Italian Labour Law e-Journal
                                                                                Special Issue 1, Vol. 13 (2020)
                                                                   Covid-19 and Labour Law. A Global Review
                                                                                     Section: National Reports




operations in compliance with the restrictive measures of the government27. According to
these schemes, a special unemployment allowance is paid to private sector’s employees28,
provided that the businesses abide to certain terms and conditions, including a ban on the
dismissal of any employees29.


e) Vulnerable workers

   The support schemes as set out in the decisions of the Minister of Labour, Welfare and
Social Insurance are linked to declared work and the corresponding social security
contributions. Therefore, and as criticized by social partners, the support of workers with
precarious and informal forms of employment remains problematic30.


f) Other measures

   The deadline for the payment of contributions to the social insurance fund has been
extended and the payment of the increase in the contribution for the General Health
System has been suspended for a period of 3 months31.


g) Health and safety

   After incidences of confirmed coronavirus infected employees in essential businesses, a
Ministerial decree32 made mandatory the laboratory testing for COVID-19 of employees in
food and beverage retail companies33, who participate in the supply chain of these
companies, as well as of employees in nursing homes. The Ministry of Health provided a
number of free laboratory tests for these purposes. However, social partners have reported
that certain businesses do not comply with the Ministerial decree34.



27Decision  on the Special Scheme for businesses fully suspending their operations (No.12) of 2020 (ΚΔΠ
187/2020) and27 Decision on the Special Scheme for businesses partly suspending their operations (No.13) of
2020 (ΚΔΠ 187/2020). Both decisions are dated 2nd May 2020.
28 The allowance is calculated at 60% of the value of the insurance units in accordance with the Social

Insurance Act.
29 Decision on the Special Scheme for businesses fully suspending their operations (No.12) of 2020 (ΚΔΠ

187/2020) and29 Decision on the Special Scheme for businesses partly suspending their operations (No.13) of
2020 (ΚΔΠ 187/2020). Both decisions are dated 2nd May 2020.
30 SEK on the restart of the Cypriot economy, https://www.sek.org.cy/index.php/blog/item/1183-sek-gia-

tin-epanadrastiriopoiisi-tis-kypriakis-oikonomias, accessed 1/5/2020.
31 Decision on extending the deadline for the payment of contributions to the Social Insurance Fund (No. 15)

of 2020 dated 2nd May 2020 (ΚΔΠ 190/2020).
32 Quarantine Decree […] (No.16) of 2020 dated 15th April 2020 (ΚΔΠ 169/2020).
33 such as bakeries, supermarkets, kiosks, butchers, fish markets, etc.
34 Announcement by PEO dated 22/4/2020 and titled“ Employers refuse to arrange laboratory tests for

their employees”, https://www.peo.org.cy/el/anakoinoseis?start=10, accessed 30/4/2020.

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 Christiana Cleridou                                                            Italian Labour Law e-Journal
                                                                               Special Issue 1, Vol. 13 (2020)
                                                                  Covid-19 and Labour Law. A Global Review
                                                                                    Section: National Reports




   Moreover, in preparation for the reopening of business on 4th May 2020 and in
consultation with the social partners35 , the Ministry of Labour, Welfare and Social
Insurance has issued Guidelines on preventive and protective measures for employees and
businesses, which complement the decrees of the Minister of Health36.


3. Social partners

   Social partners have been participating in the decision-making processes leading to the
adoption of the measures aiming to support the employees during the COVID-19
pandemic37.
   Furthermore, the social partners have highlighted gaps in the measures adopted and the
government has revised them accordingly. For example, the initial measures on the special
unemployment allowance and the special sickness allowance didn’t include minimum
amounts. This has been revised in subsequent decrees38.


4. Other issues

    It is noteworthy that on the 10th April 2020 and during the lockdown, the Supreme
Court of Cyprus39 ruled that cuts imposed on the pay and pensions of public servants in
2013 during the economic crisis were legal. In this decision, the full bench upheld by
majority an appeal submitted by the Attorney General against a ruling of the
Administrative Court. This decision sent shocking waves to employees of the public sector
firstly because the cuts on their salaries will not be reimbursed and secondly, because the
government, if necessary, could in principle impose again cuts on their salaries as a
response to the devastating impact of the COVID-19 pandemic lockdown on the
economy. The decision has been also criticized by academics, who have argued that the
Court’s decision was based more on economic considerations rather than legal ones40.



35 Cyprus- Minister of Health: All the details on the operation of working places dated 30/4/2020,
https://gr.euronews.com/2020/04/30/kypros-covid-19-ypourgeio-ergasias-oles-oi-leptomereies-gia-to-pos-
tha-leitourgoun-xwroi, accessed 1/5/2020.
36 https://www.coronavirus.mlsi.gov.cy/safety, accessed 1/5/2020.
37 https://www.sek.org.cy/index.php/blog/item/1174-ystati-ekklisi-sek-pros-tis-ergodotikes-organoseis-oev-

kai-keve
38 PEO-Information on the changes to the schemes of the Ministry of Labour,

https://www.peo.org.cy/el/anakoinoseis/enimerotiko-simeioma-gia-tis-allages-sta-sxedia-tou-ypourgeiou-
ergasias?tmpl=component&print=1&layout=default, accessed 28/4/2020.
39 Κυπριακή Δηµοκρατία ν. Αυγουστή κ.α., Εφέσεις κατά απόφασης Διοικητικού Δικαστηρίου Αρ. 177/18,

75/19, 76/19, 77/19, 79/19, 80/19, 84/19 και 85/19, 10/4/2020
40 Professor Achilles Emilianides, Right to property and cuts of pay and pensions of public servants dated

12/4/2020,
 https://dikaiosyni.com/katigories/arthra/dikaioma-stin-idioktisia-kai-perikopes-misthwn-kai-syntaxewn-
dimosiwn-ypallilwn/https://dikaiosyni.com/katigories/arthra/dikaioma-stin-idioktisia-kai-perikopes-
misthwn-kai-syntaxewn-dimosiwn-ypallilwn/, accessed 13/4/2020.

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 Christiana Cleridou                                                 Italian Labour Law e-Journal
                                                                    Special Issue 1, Vol. 13 (2020)
                                                       Covid-19 and Labour Law. A Global Review
                                                                         Section: National Reports




Copyright © 2020 Christiana Cleridou. This article is released under a Creative Commons
Attribution 4.0 International License




https://doi.org/10.6092/issn.1561-8048/10955                                                      7
