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How to hire remote employees in
No matter where you’re based out of, we can tell you one thing: Cyprus has different labor laws than your home country (well, unless your home country is Cyprus, of course). If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard.
If you want to successfully hire in
Cyprus
, you have two options:
Laws about hiring contractors are significantly more simple in
Cyprus
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Cyprus
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Cyprus
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Cyprus
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Cyprus
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Cyprus than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Cyprus
PTO is calculated by the:
There are 14 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Female employees are entitled to 18 weeks of maternity leave and are extended to 22 weeks when there are twins, and 26 weeks when there are at least 3 births.
During this time the employee receives 72% of their salary and it is paid by the government.
Fathers are entitled to a total of 16 weeks of paternity leave, where 2 consecutive weeks can be taken with 16 weeks of the birth of a child.
Parents are entitled to unpaid parental leave of up to 18 weeks for childcare purposes until the child reaches 8 years of age.
None.
None.
None.
The termination process should be specified in the employment agreement.
The notice period in Cyprus is:
The only time a notice is not required is when the employee has committed a serious offense. The notice period must be given in writing.
The severance pay varies based on length of employment:
The common practice is 6 months – 2 years and must be outlined in the employment agreement.
A full-time workweek is 44 hours or 8 hours per day.
Overtime should be outlined in the employment contract as there are no applicable laws in Cyprus.
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