Remote Work & Telework Law in Cyprus: Employer Obligations & Employee Rights
Comprehensive guide to Cyprus Law 120(I)/2023 governing telework: employment contract mandatory clauses, reimbursement of home-office expenses, health & safety, and the Right to Disconnect.
Sign a formal telework agreement or amendment
Under Law 120(I)/2023, telework is voluntary and requires mutual written agreement (either incorporated in the initial contract or added as an addendum). Refusal by an existing employee to switch to remote working cannot justify termination.
Reimburse mandatory home-office and telecommunication expenses
Employers are legally obligated to cover operational costs: providing and maintaining hardware, IT technical support, and monthly cost allowances for home internet and electricity utilized during working hours. Such statutory reimbursements are non-taxable.
Implement the statutory 'Right to Disconnect'
Employees have an absolute statutory right to disconnect outside agreed working hours. Employers must not penalize employees for refusing to respond to emails, calls, or Slack messages outside their contracted schedule. Electronic surveillance must strictly comply with GDPR.
FAQ
Can a Cyprus company employ fully remote staff residing outside Cyprus?
Yes, but cross-border remote work creates potential Permanent Establishment (PE) corporate tax exposure and payroll tax/social security liabilities in the employee's country of residence. Consult international tax counsel to structure contracts via Employer of Record (EOR) or independent contractor agreements.