Cyprus implements EU posted worker directive

IMPACT – MEDIUM

What is the change? Cyprus has implemented the EU posted workers directive, imposing new notification requirements on companies sending workers to the country for temporary assignments.

What does the change mean? Effective immediately, employers must notify the Department of Labor before a posted worker begins an assignment. Host companies must keep copies of the posted worker’s service agreement and an A1 form as evidence that the posted worker is enrolled in social security in his or her home country.

• Implementation time frame: Immediate and ongoing.
• Visas/permits affected: Posted worker notifications.
• Who is affected: EU/EEA companies posting employees to work in Cyprus.
• Business impact: The changes add new administrative steps to the process of sending or receiving posted workers in Cyprus.

Background: Cyprus adopted the new rules to comply with the EU’s 2014 enforcement directive on posted workers.

Under the rules, notification must be submitted to the Labor Department before the posted worker’s assignment begins. The notification process includes providing a written statement with (1) the name of the sending company, (2) information about legal representatives for both the sending and host companies, (3) the address and name of the host company, (4) the date on which the posted worker will begin his or her assignment, (5) the nature of the assignment, and (6) the posted worker’s name, passport information, date of birth and job title. Companies also must provide a copy of the employment agreement between the sending and host companies, the worker’s service agreement and the A1 form showing that the posted worker is enrolled in social security in his or her home country. Host companies must keep copies of the service agreement and an A1 form and be prepared to produce them if requested by authorities.

Non-EU nationals who hold work permits in other EU countries may be posted to work in Cyprus, but in addition to the procedures listed above must also obtain an entry permit before coming to Cyprus and submit a work permit application upon arriving in Cyprus.

BAL Analysis: Affected companies should make sure they follow Cyprus’s new posted worker procedures and documentation requirements. Questions about individual cases should be directed to a BAL professional.

This alert has been provided by the BAL Global Practice group and our network provider located in Cyprus. For additional information, please contact your BAL attorney.

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