As of July 2000, the rights of the employees in Cyprus in cases of transfer of undertakings, businesses or part thereof, are safeguarded and regulated by ‘the Safeguarding and Protection of Employees Rights in the Event of the Transfer of Undertakings, Businesses or Parts Thereof Law (104(I)/2000)’ (the «Law»).
The Law applies to the transfer of undertakings, businesses or parts thereof from one employer to another, as a result of a legal transfer of a business or merger and covers both public and private businesses engaged in economic activities, irrespective of whether they are operating for profit or non-profit purposes.
According to the Law, the rights and obligations of the Transferor (person who ceases to be the employer) arising from the contract of employment or the employment relationship which exists on the date of transfer, are transferred to the Transferee (person who becomes the employer) who must continue to observe the terms and conditions agreed in any collective agreement until this agreement either terminates, expires or is replaced with another agreement.
One of the main obligations of the Transferor and the Transferee which is provided in the Law, is to give sufficient notice, in advance, to the employees who will be affected by the transfer or their representatives. The information that should be shared with the notice are specified in the Law and include the reasons for the transfer, the date this will take place and the implications it will have for the employees.
In the event either the Transferor or the Transferee intend to change the working conditions of the employees, they have an additional obligation to consult in advance with these employees or their representatives with a view to reach agreement.
It is worth mentioning that the transfer of an undertaking, business or part thereof, cannot itself constitute a valid reason for dismissal of an employee. A dismissal however due to economic, technical or organizational reasons is justified.
The Labour Disputes Court has primary jurisdiction over a dispute arising as a result of the application of the above Law.
Should you require further information, contact our team at info@paraschou.com.cy.
