A fresh confrontation is brewing between trade unions and Labour Minister Yiannis Panayiotou, this time over the newly proposed employment strategy for third-country nationals outlined in a draft bill.

The draft criteria for the updated strategy, obtained by Brief, have been circulated among social partners in recent days for comments, clarifications, and observations. However, trade unions have expressed strong objections to several provisions in the bill. These objections will be presented to the Minister today in a detailed joint letter signed by the General Secretaries of SEK, PEO, and DEOK.

According to Brief, union objections are focused on:

• Housing Criteria: The new strategy increases the permissible salary deduction for worker housing costs from 10% to 25%. Unions argue this constitutes an indirect salary reduction for foreign workers.

• Worker Autonomy: The draft fails to guarantee that affected workers can independently choose their accommodation.

• Employer Flexibility: The bill allows employers to transfer foreign workers between establishments within the same company, raising union concerns over worker rights.

• Technical Committee Issues: The unions believe the technical committee responsible for overseeing foreign workers' employment lacks transparency and meritocracy.

The primary aim of the updated strategy is to modernize and regulate the process for examining employer applications to hire third-country nationals. It seeks to address labor market needs while ensuring equal treatment for employers and workers regarding labor rights.

Under existing legislation:

• Employers must obtain approval from the Labour Department before hiring third-country nationals.

• Approved employers apply to the Migration Department for entry, residence, and work permits for the foreign worker.

• Employing third-country nationals without proper permits is a criminal offense, punishable by fines and/or imprisonment.

• Temporary residence permits for employment specify the nature and duration of work.

The Ministry of Labour defines policies for hiring third-country nationals in Cypriot and EU-interest businesses, while the Migration Department handles permits and enforcement.

The following conditions must be met:

1. Documented shortage of Cypriot, EU, or legally residing third-country workers for specific positions.

2. Employer compliance with labor laws and applicable collective agreements.

3. Employer adherence to all legal obligations, including settling debts to the state.

Key provisions for employing third-country nationals include:

• Employment termination for foreign workers must precede redundancies or business suspensions affecting Cypriots or EU workers.

• Employers must provide acceptable housing and may deduct up to 25% of gross earnings for housing costs, provided they meet specified standards.

• If employers do not offer meals, housing must include kitchen facilities. Where meals are provided, an additional 15% salary deduction is allowed.

• Foreign workers may join a union of their choice.

The updated strategy will be presented to the Council of Ministers for approval after incorporating feedback from social partners. Parliamentary approval is not required, as the matter falls under executive authority. Employers’ organizations will also submit their comments and clarifications to the Minister of Labour.