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Termination of Employment Law in Cyprus: A 2025 Guide

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Understanding employment termination in Cyprus helps both employers and employees reduce risks. This guide explains notice periods, grounds for dismissal, severance, and what to do in an unfair dismissal scenario.


Notice Periods: What the Law Requires

Under the Termination of Employment Law (Law 24/1967, amended), the required notice depends on length of service:

  • Less than 26 weeks: no notice
  • 26–51 weeks: 1 week
  • 52–103 weeks: 2 weeks
  • 104–155 weeks: 4 weeks
  • 156–207 weeks: 5 weeks
  • 208–259 weeks: 6 weeks
  • 260–311 weeks: 7 weeks
  • 312 weeks and above: 8 weeks

Employers and employees must give written notice. However, during probation, employers can terminate without notice. Continuing uncertainty? Employers may pay wages in lieu of notice.


Grounds for Immediate Dismissal

Cypriot law allows immediate dismissal without notice only for “gross misconduct,” such as:

  • Criminal acts
  • Serious breaches of contract
  • Immoral or illegal behaviour during employment

Still, legal guidance typically expects at least a hearing before termination.


Redundancy and Severance

When employers make dismissals for economic or operational reasons (i.e., redundancy), they must follow a specific procedure. These include:

  • Notification to authorities at least one month prior
  • Priority in re-employment for laid-off staff within 8 months
  • Severance pay may also apply, depending on collective agreements.

Protection from Unfair Dismissal

Employees may claim unfair dismissal in the Labour Disputes Court:

  • They must act within 12 months of termination
  • Or within 9 months of redundancy notice
  • Remedies can include reinstatement or damages up to two years’ salary.

Constructive Dismissal

Constructive dismissal occurs when an employer makes working conditions so intolerable that an employee feels forced to quit. Under such conditions, the court may treat it as wrongful termination, leading to compensation claims in Cyprus.


Key Takeaways

TopicSummary
Notice periodsBased on service length; written notice always required
Immediate dismissalOnly valid for serious misconduct; follow hearing steps
RedundancyRequires authority notice, severance, and rehire rights
Unfair dismissalEmployees can challenge termination in court
Constructive dismissalCan lead to wrongful-dismissal claims

Why It Matters

Both employers and employees must understand their rights and duties. Employers can avoid costly legal disputes, and employees can protect their livelihoods.

For more legal insights and guidance, visit Soneverse and explore our comprehensive Law Guide Page.

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