In Cyprus, annual leave entitlements are designed to ensure employees receive adequate rest and maintain a healthy work-life balance. The standard leave entitlement is structured as follows:
To qualify for the full annual leave entitlement, an employee must have completed at least 48 weeks of service within the year. If an employee has worked less than 48 weeks, their leave entitlement is adjusted proportionally. Importantly, periods of temporary absence due to accidents, sickness, maternity, parental leave, or leave on grounds of force majeure are considered as part of the working period and do not reduce the annual leave entitlement.
Employers have the discretion to determine when employees can take their annual leave, but they cannot reduce the statutory leave period. Additionally, by mutual agreement, annual leave can be accumulated over a period of two years. In such cases, employees are paid their leave simultaneously for both years from the Central Holiday Fund.
During the annual leave period, employees receive their regular wages, which can be paid directly by the employer or through the Central Holiday Fund, to which employers contribute 8% of the employee’s total earnings. This system ensures that employees are financially supported during their time off.
It’s important to note that public holidays, maternity or parental leave, absences due to accidents or illness, and periods of strike or lockout are not counted as part of the annual leave. Furthermore, payment in lieu of leave is only permissible upon termination of employment, ensuring that employees have the opportunity to utilize their entitled rest periods during their tenure.
