The Ministry of Labor expressed its intention to present the draft law on teleworking to the Ministerial Council on Thursday.

Speaking before the Parliamentary Committee on Labor on Tuesday, Minister of Labor Yiannis Panagiotou, stated that upon approval from the Ministerial Council, the draft law would be brought to the House of Representatives with the hope of being voted on before the parliamentary recess for the summer. He added that within the framework of the Recovery and Resilience Plan, the Republic of Cyprus has committed to regulating this issue in the first half of 2023.

However, as he mentioned, since there is also a commitment to regulating this issue at the European level, if a relevant directive is approved by the EU in the meantime, the draft law will be withdrawn. On the other hand, if a directive is issued after the law is passed, European law will take precedence.

As he stated, the intention of the Ministry is to regulate these matters in order to better exploit this flexible form of employment.

At the same time, the Minister was questioned by Members of Parliament regarding the issue of granting compensation for bodily harm in case of work-related accidents to employees over the age of 63 who choose not to retire. He mentioned that the Government intends to examine the matter. Andreas Zachariades, the Director-General of the Ministry, when asked by MPs, stated that the issue of compensation for bodily harm was inadvertently omitted from a previous draft law that was passed on this matter and covered the sickness allowance for this specific category of workers.

Regarding the issue of drivers on digital food delivery platforms, the Minister stated that dialogue with companies is ongoing, and he expressed the opinion that there is a positive disposition. He noted that there is a misuse of the term "self-employed" in this matter when, in reality, these individuals are employees.

As for the issue of allowances for self-employed individuals, the Minister stated that a plan is being developed to differentiate various benefits provided to them. However, he mentioned that things are more complex when it comes to unemployment benefits, and a more comprehensive discussion needs to take place within the framework of the Labor Advisory Body.

The Minister also addressed the issue of remuneration for new scientists, stating that discussions are underway regarding the compensation for young lawyers and engineers with their respective professional associations.

Regarding the remuneration for student interns, he stated that the goal is to connect academic institutions with the job market. However, the amount of remuneration should be balanced in order not to hinder students' access to the job market.

Regarding the topic of parental leave, the Minister acknowledged that while the relevant legislation has been passed, the necessary technological infrastructure for its effective implementation is still lacking. Although individuals are availing themselves of this leave, the payment processes have not yet been put into action. The Minister emphasized the Ministry's objective to optimize technology to ensure timely disbursement of benefits within a month.

The discussion on the new employment strategy for workers from third countries, slated to commence in September, touched upon the Minister's perspective. Given the current timing, just prior to the summer season, the Minister stressed the need for the legislation to be implemented in a manner that prevents misuse while safeguarding the smooth operation of the tourism industry.

Reiterating the Government's stance, the Minister highlighted the goal of establishing a stable and high-quality domestic workforce, complemented by foreign labor to address any unmet needs within the local workforce.

Pressure from both labor unions and employers' organizations was cited regarding the new strategy for workers from third countries, with the Minister suggesting that the truth lies somewhere in the middle.

In terms of numerical data related to the new strategy, the Minister disclosed that there has been a 28.5% decrease in applications submitted between March 1 and May 15, 2023, compared to the corresponding period last year. This year, 2,084 applications were received, in contrast to 2,915 in the previous year. Notably, applications have seen an increase in the restaurant, construction, and agriculture sectors, while experiencing a decline in the hotel sector.

Furthermore, the Minister emphasized the importance of considering and incorporating all available data during the autumn period to develop a comprehensive strategy well in advance of the next summer season.

During the discussion, the General Secretary of PEO, Sotiroulla Charalambous, underscored that the employment strategy for workers from third countries serves as another tool for employers to deregulate labor relations. She emphasized that the issue lies not in the mechanisms themselves but rather in the procedures followed and the necessity for corrective measures.

Andreas Matsas, the General Secretary of SEK, revealed information indicating a significant number of permits for employing individuals from third countries were issued between the week of the strategy's approval and the assumption of duties by the new Government. He further highlighted that the revision of this particular strategy was undertaken without conducting an analysis of market data, integrating it with the immigration policy, or making efforts to enhance Cyprus' tourism product.

The Director of the Labor Department, Alexandros Alexandrou, highlighted that there has been no widespread approval of applications since the adoption of the strategy on February 22nd.

Stelios Christodoulou, Deputy President of DEOK, mentioned that there was a lack of public dialogue regarding this specific matter. Furthermore, he stated that anyone interested can pursue employment in Cyprus and emphasized the need for a fresh round of constructive dialogue to address the necessary adjustments to the existing strategy.

Polyvios Polyviou, representing OEB, expressed the view that the new strategy has undergone extensive consultation and dialogue over the years. He also stressed that the shortage of human resources is a numerical problem, as there is a scarcity of available unemployed individuals to fill the job vacancies. He called for support in the ambitious endeavors to fill these positions and expand companies through product exports on an international scale.