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Protection of Wages Convention, 1949 (No. 95) - Cyprus (Ratification: 1960)

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Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Article 4(2) of the Convention. Partial payment of wages in kind. In its previous comments, the Committee requested the Government to indicate whether any regulations had been issued under the Protection of Wages Act (thereafter the Act) in order to define the fair and reasonable valuation of allowances in kind which are authorized under section 4 of the Act, or specify the maximum amount of the cash wages which may be paid in kind. The Committee notes the Government’s indication in its report that no measures have been adopted in this regard. It also notes the Government’s indication that no such practices have been detected and there is no industry or occupation where payment of allowances in kind is customary. In this context, the Committee requests the Government to ensure that, should the need to regulate this matter arise in the future, it would take the necessary measures to ensure full compliance with Article 4(2). The Committee requests the Government to provide information on any developments in this regard.

Articles 8(1) and 10(1). Deductions from wages. Assignment of wages. The Committee notes that section 10 of the Act, which enumerates the authorized deductions, allows deductions to be made with the consent of the employee. The Committee also notes that sections 10(4) and 11 of the Act provide respectively that deductions and assignments shall be limited to the extent necessary for the maintenance of employees and their families. Noting that these provisions do not establish a clear limit to deductions and assignment of wages, the Committee recalls the importance of establishing such limits for the full application of Articles 8 and 10. The Committee therefore requests the Government to indicate the measures taken or envisaged to ensure full compliance with these Articles.

Article 12(1). Payment of wages at regular intervals. In its previous comments, the Committee requested clarifications on the possibility provided for in section 9 of the Act for the payment of wages to be made at intervals other than those established in the law, if so arranged in practice. The Committee takes note of the Government’s reply indicating that the term “practice” refers to arrangements that have a similar effect and equal standing in a court of law as a collective agreement and that practices leading to less regular intervals for the payment of wages do not exist in Cyprus. The Government also refers to the legal remedies which would be available if such cases arose in the future.

Article 12(2). Final settlement upon termination. The Committee notes that in response to its previous comments regarding the absence of provisions regulating the final settlement of wages upon termination of the employment contract, the Government indicates that: (i) in the event of outstanding payments, the employee concerned can submit a complaint to the Department of Labour Relations, which will examine the case; (ii) in the case of an employer’s refusal to comply with the directives of the Department of Labour Relations to settle the outstanding payments, the Department would initiate criminal proceedings against the employer; and (iii) the burden of proof for the payment of wages is placed upon the employer.

Article 14(b). Wage statements. The Committee notes that in response to its previous comments on this matter, the Government indicates that despite the lack of specific legal provisions providing for the issuance of wage statements at the time of each payment of wages, issuing wage statements remains common practice in the country.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Article 4 of the Convention. Partial payment of wages in kind. The Committee notes that under section 4 of the Protection of Wages Act No. 35(I)/2007, the partial payment of wages in the form of allowances in kind is permitted provided that the value given to such allowances is reasonable and fair. The Committee recalls, in this respect, that Article 4(2) of the Convention imposes an obligation as to the result to be achieved and therefore requires the adoption of practical measures to ensure that any allowances in kind which may be provided in partial settlement of the wages due are attributed a fair and reasonable value (for instance, by reference to ordinary market value or cost price). The Committee therefore requests the Government to indicate whether any regulations have been issued under section 21 of the Act in order to define the fair and reasonable valuation of allowances in kind or specify the maximum amount of the cash wages which may be paid in kind, and if so, to transmit a copy.

Article 11. Wages as privileged debts. The Committee recalls that, in its 2006 report, the Government indicated that following the adoption of Act No. 25(I) of 2001 concerning the protection of employees’ rights in the event of the employer’s insolvency and the establishment of the Insolvency Fund, it was considering the ratification of the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173). The Committee requests the Government to keep the Office informed of any decision taken with respect to the ratification of Convention No. 173.

Article 12(1). Payment of wages at regular intervals. The Committee notes that under section 9 of the Protection of Wages Act, the frequency of payments may be differentiated if so arranged in practice. Recalling that the Convention requires the intervals for the payment of wages to be prescribed by national laws or regulations or fixed by collective agreement or arbitration award, the Committee requests the Government to provide further clarifications on this point.

Article 12(2). Final settlement of wages upon termination of contract. The Committee notes that the Government’s report is silent on any legal provisions giving effect to this Article of the Convention. The Committee therefore asks the Government to specify any provisions in the national legislation that require the prompt settlement of any outstanding payments upon the termination of a contract of employment, as prescribed by this Article of the Convention.

Article 14(b). Wage statements. The Committee notes that no provision is made in the Protection of Wages Act for the issuance of wage statements at the time of each payment of wages. The Committee therefore requests the Government to indicate how effect is given to this requirement of the Convention.

Part V of the report form. Application in practice. The Committee requests the Government to provide general information on the manner in which the Convention is applied in practice, including, for example, information concerning the number of workers covered by the relevant legislation, extracts from reports of the inspection services indicating the number and nature of violations reported and penalties imposed and any difficulties experienced in the application of the Convention.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Article 15 of the Convention. Implementing legislation. The Committee recalls that for a number of years it has been drawing the Government’s attention to the absence of legislative provisions giving effect to most of the provisions of the Convention and it has been urging the tripartite Labour Advisory Board and successive technical committees to complete the drafting of new legislation. The Committee notes with satisfaction the adoption of the Protection of Wages Act No. 35(I)/2007 which transposes into domestic law all the key principles of the Convention and complies with most of its requirements.

The Committee is raising other points in a request addressed directly to the Government.

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee has been following for a number of years the Government’s efforts to draft and adopt new legislation on the protection of wages with a view to ensuring full legislative conformity with the Convention. In its last report, the Government indicates that the Law Office of the Republic has completed the legal vetting of a new draft law, which was originally prepared in May 2003 by a Tripartite Technical Committee of the Labour Advisory Board, and that the finalized text would now be submitted to the Council of Ministers for approval. While noting the Government’s renewed assurances that all the requirements of the Convention have been duly taken into account, the Committee requests the Government to transmit a copy of the new legislation as soon as it is enacted.

In addition, the Committee notes with interest the information provided by the Government on the financing, administration and payment procedure of the Insolvency Fund which was set up under Act No. 25(I) of 2001 concerning the protection of employees’ rights in the event of the employer's insolvency. The Insolvency Fund is administered by a Board with a tripartite composition consisting of members of the Social Insurance Council. It is financed each month with a transfer of 16.6 per cent of the contributions paid by employers to the Redundancy Fund and covers service-related claims of all employees, including trainees, on condition that they have been continuously employed by the insolvent employer for not less than 26 weeks prior to the insolvency. Beneficiaries are entitled to payment of outstanding wages for the last 13 weeks of employment up to a maximum weekly wage not exceeding four times the amount of the basic insurable earnings which is determined each year under the Social Insurance Law (maximum amount set at £329,60 for 2006). An application must be submitted within three months from the date of the insolvency and payments are made by cheque to be cashed within six months from the date of issue. The Committee avails itself of this opportunity to draw once again the Government’s attention to the provisions of the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173) which was designed as a modern and flexible instrument offering a wide range of options to ratifying member States. Noting the Government’s indication that the ratification of Convention No. 173 is currently under consideration by the Social Insurance Services, the Committee asks the Government to keep the Office informed of any decision taken in this regard.

Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

Further to its previous observation, the Committee notes the Government’s statement that in May 2003 the Tripartite Technical Committee of the Labour Advisory Board completed the drafting of a new law on the protection of wages which will ensure full legislative conformity with the Convention. The Government adds that the draft text will be transmitted to the full Board for consideration and approval before being submitted to the Council of Ministers. The Committee notes the Government’s assurances that the new legislation takes satisfactorily into account all the requirements of the Convention and the Committee’s past comments. The Committee requests the Government to keep it informed of any further progress made towards the adoption of the new legislation and to provide a copy as soon as it is enacted.

In addition, the Committee notes with interest the adoption of Act No. 25(I) of 2001 concerning the protection of employees’ rights in the event of the employer’s insolvency which provides for the establishment of a wage guarantee fund. The wage guarantee fund covers unpaid wages for the last 13 weeks of work as well as claims for holiday pay and end-of-year bonuses, up to a weekly ceiling equivalent to four times the basic weekly wage used for the assessment of social security contributions. In this connection, the Committee wishes to draw the Government’s attention to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173), which marks a clear improvement over the standards set out in Article 11 of Convention No. 95 and which provides for a distinct set of principles for the protection of workers’ claims by means of a privilege or through the intervention of an independent guarantee institution or both in combination. Hoping that the Government will give favourable consideration to the ratification of the above instrument, the Committee would appreciate receiving additional information on the operation of the wage guarantee fund including copies of any regulations which may have been issued under section 8(2) of Act 25(I)/2001 regarding its financing, administration and payment procedure.

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes the information provided by the Government in its report.

The Committee notes the Government’s indication that it intended to give effect to the provisions of the Convention through the law transposing Council Directive 91/533/EEC on an employer’s obligation to inform employees of the conditions applicable to the contract or employment relationship, but this has not been achieved. The Committee wishes to note in this respect that the objective of the above Directive is limited to the obligation of employers to inform workers and that it would not therefore, even if transposed into domestic law, provide a basis for complying with all the provisions of the Convention. Such a transposition would only give partial effect to Article 14(a) of the Convention.

The Committee also notes the Government’s statement acknowledging the importance of adopting the necessary legislative measures to give effect to the Convention and that it considers them to be one of its priorities. In this respect, the Committee notes that a tripartite technical committee of the Labour Advisory Board is currently examining draft legislation to give effect to the provisions of the Convention and that the above committee is expected to submit a proposal to the Board by the end of this year. The Committee recalls in this respect that the Government had already indicated in its report in 1973 that a similar approach had been initiated. The Committee feels bound to express its continued regret that the work of such a technical committee has not, since that time, resulted in the adoption of a legislative text giving effect to the provisions of the Convention.

The Committee therefore hopes that the Government will take the necessary measures without more ado to give full effect to the provisions of Article 3 (payment of wages in legal tender), Article 4 (restrictions on the partial payment of wages in kind), Article 6 (freedom of workers to dispose of their wages), Article 8 (restrictions on deductions from wages), Article 10 (restrictions on the attachment or assignment of wages), Article 13 (time and place of the payment of wages) and Article 15(d) (maintenance of wage records) of the Convention.

[The Government is asked to reply in detail to the present comments in 2003.]

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the Government’s report as well as the adoption of the Law on Private Employment Agencies No. 8(I) of 1997, Law No. 134(I) of 1999 amending the Civil Procedure Act, and the Law on the Employer’s Obligation to Inform the Employee on the Conditions Applicable to the Employment Contract or Relationship No. 100(I) of 2000, which contain provisions giving effect to certain requirements of the Convention.

The Committee nevertheless regrets that, despite its repeated comments in the last 40 years, specific legislation has still to be enacted for the application of Articles 3 (wage payment in legal tender), 4 (restrictions on partial payment of wages in kind), 6 (free disposal of wages), 8 (restrictions on wage deductions), 10 (restrictions on attachment and assignment of wages), 13 (time and place of payment) and 15(d) (maintenance of payroll records) of the Convention. It also notes with concern that the Government continues to rely principally on practice for the implementation of the Convention. While noting the Government’s statement that the effort to take additional measures, legislative or other, that are necessary to implement the Convention will be resumed in the near future, the Committee is bound to recall that the principal obligation for a government arising out of the ratification of an international labour Convention is to take such action as may be necessary to incorporate the requirements of the ratified Convention into the national legal order. The fact that, as indicated in the Government’s report, the application of wage protection legislation has not so far given rise to any complaints does not absolve the Government from its obligation to give legislative expression to the standards laid down in the Convention.

The Committee hopes that the Government will take, without further delay, whatever steps may be necessary to ensure full legislative conformity with the Convention.

[The Government is asked to report in detail in 2002.]

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee recalls that it requested in its earlier comments the adoption of measures necessary to give effect to Articles 8, 9, 10 and 15(d) of the Convention dealing respectively with deductions from wages, the attachment or assignment of wages, and wage records.

The Committee notes the Government's indication in its report that the Ministry of Labour and Social Insurance has collected information from the ILO and other sources, concerning legislation on protection of wages in other countries, and that the issue is currently under study with a view to updating, if necessary, the existing legislation and/or codes of conduct.

Recalling that the above measures had been requested for many years, the Committee hopes that the Government will soon be able to indicate the progress made in this regard.

Observation (CEACR) - adopted 1987, published 74th ILC session (1987)

The Committee notes with regret from the Government's report that there has been no progress in the adoption of measures necessary to give effect to Articles 8, 9, 10 and 15(d) of the Convention. It recalls that such measures have been requested for many years. It again expresses the hope that appropriate measures will soon be adopted to this end, and that the Government will be able to indicate in its next report, that progress has been made towards ensuring the full application of the Convention.