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Tackling Illegal Employment in Cyprus

employment cyprus

Cyprus is taking a strong stance against illegal employment with enhanced inspections, an electronic census of workers, and cracking down on misclassification of self-employment. Labour Minister Yiannis Panayiotou is leading the charge to address this issue and improve work conditions, support parents, and foster international labor cooperation to ensure a fair and regulated labor market.

How is Cyprus tackling illegal employment?

Cyprus is addressing illegal employment by strengthening inspections, introducing an electronic census of workers, cracking down on misclassification of self-employment, improving work conditions, supporting working parents, fostering international labor cooperation, and enhancing welfare with increased minimum wage and allowances.

Illegal employment has long plagued economies worldwide, and Cyprus is taking a firm stance against this issue. The Labour Minister of Cyprus, Yiannis Panayiotou, has put forth a strong message: the government will handle illegal employment with a robust and decisive approach.

A Year of Action and Future Plans

Reflecting on his first year in office, Panayiotou expressed his resolve to ramp up efforts against illegal work practices. The main strategy to combat this involves strengthening the institutional framework to conduct more thorough inspections of workplaces. By identifying and rectifying cases of illegal employment, the government aims to foster a fairer and more regulated labor market.

The plan includes increasing the frequency of routine inspections and introducing an innovative “electronic census” that encompasses all employees and self-employed individuals in Cyprus. This digital measure aims to enhance governmental oversight, ensuring that all workers in the country are correctly accounted for and contributing to social insurance where applicable.

Cracking Down on Misclassification

A particular area of concern that Panayiotou highlighted was the misdeclaration of self-employment. Some individuals may falsely claim self-employed status to avoid certain legal and financial obligations. This misclassification undermines fair competition and workers’ rights, as well as deprives the state of valuable revenue from taxes and social insurance contributions. The government’s clampdown will ensure that individuals are “correctly categorised,” aligning Cyprus more closely with European Union standards, including those pertaining to minimum wages.

Improving Work Conditions and Supporting Parents

Panayiotou also shed light on the government’s commitment to enhancing the overall quality of the work environment in Cyprus. This encompasses the establishment of a more robust framework for addressing workplace bullying and harassment. Moreover, a key focus will be on harmonizing local legislation with EU directives, particularly concerning minimum wages and labor relations.

Support for working parents has been earmarked as a priority for the coming year. The government plans to augment state benefits for both working and self-employed parents while ensuring that maternity pay is disbursed punctually. Additionally, efforts are being made to raise the employment rate of local workers and to launch targeted campaigns to attract workers from other EU and European Economic Area countries.

Fostering International Labor Cooperation

The government’s strategies extend beyond national boundaries as well. Panayiotou mentioned intentions to sign bilateral agreements with EU candidate countries and other third countries. These agreements aim to tap into the potential of medium and low-skilled workers, which could, in turn, provide more flexible staffing options for the Cypriot labor market.

Achievements in Enhancing Workers’ Welfare

Panayiotou proudly reflected on the strides made in his first year, particularly in increasing the cost-of-living allowance (CoLA), which has benefited approximately 180,000 workers in Cyprus. The minister also noted the positive impact of raising the minimum wage to €1,000 per month, which has improved the financial situation of 25,000 individuals.

The prompt payment of pensions and unemployment benefits has also been emphasized as a significant accomplishment, greatly aiding the elderly and those recently unemployed. In light of these successes and the outlined plans, the government’s commitment to a fair, efficient, and inclusive labor market in Cyprus remains steadfast.

What steps is Cyprus taking to address illegal employment?

Cyprus is strengthening inspections, introducing an electronic census of workers, cracking down on misclassification of self-employment, improving work conditions, supporting working parents, fostering international labor cooperation, and enhancing welfare with increased minimum wage and allowances.

How is Labour Minister Yiannis Panayiotou leading the charge against illegal employment in Cyprus?

Labour Minister Yiannis Panayiotou is spearheading efforts to combat illegal employment by implementing enhanced inspections, introducing an electronic census of workers, cracking down on misclassification of self-employment, and fostering international labor cooperation.

What are the future plans of Cyprus in tackling illegal employment?

Cyprus plans to increase the frequency of inspections, introduce an electronic census of workers, crack down on misclassification of self-employment, improve work conditions, support parents, foster international labor cooperation, and enhance welfare by increasing minimum wage and allowances.

What achievements has Cyprus made in enhancing workers’ welfare?

Cyprus has increased the cost-of-living allowance, raised the minimum wage, ensured prompt payment of pensions and unemployment benefits, and improved the financial situation of thousands of individuals. These measures have contributed to a fairer and more inclusive labor market in Cyprus.

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