New Law Mandates Electronic Registration for Cyprus Employees
Statements From the Minister of Labor Yiannis Panayiotou and the Chairman of the Labor Committee Andreas Kavkalias.
The bills submitted by the Ministry of Labor, aimed at combating undeclared work, are just one step away from being brought before the plenary session for a vote. Following today's meeting of the Parliamentary Labor Committee regarding the final decision on these bills, Minister of Labor Yiannis Panayiotou expressed that "it is important that the Parliament recognizes the need identified by the government to enhance the tools necessary for the Ministry to more effectively address undeclared and illegal work."
Minister of Labor Yiannis Panayiotou explained that the bills had been submitted since June, and discussions began in the Committee. Some minor adjustments were made to gain broader acceptance. According to the information he received, the members of the Parliamentary Labor Committee have a positive stance, and he expects the bills to be brought to the plenary for a vote as soon as possible.
The Minister clarified that there are two bills aimed at combating undeclared work. One concerns the mandatory registration of employment terms for all workers in the Ministry of Labor's electronic system, which will allow for better monitoring of compliance with employment terms and wage payments.
The second bill, according to the Minister, involves increasing penalties, specifically the fines imposed on employers who are found employing undeclared or illegal workers.
The Chairman of the Parliamentary Labor Committee and AKEL MP, Andreas Kavkalias, explained the changes made to the final drafts of the two bills. The government accepted the proposal to make the obligation for electronic registration part of the law itself, rather than regulated by decree. In other words, the electronic registration of employees will be a mandatory legal requirement.
Another significant change involves the doubling of fines through the imposition of administrative penalties. Kavkalias noted that this adjustment was recognized as necessary after a legal review, allowing penalties to be imposed more effectively through administrative fines rather than relying on court orders.
In summary, the key changes are the mandatory electronic registration of employees as a legal obligation and the doubling of fines for violations through administrative penalties. These changes are seen as strengthening the government’s tools to combat undeclared work more decisively.