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Govt to crackdown on undeclared construction workers

Cyprus Mail · 2026-09-25

AI SUMMARY

• What happened: The Labour Inspection Service in Cyprus will launch a campaign next month to target undeclared workers in the construction industry, conducting checks to ensure compliance with labour laws and basic employment conditions. • Why it matters: This initiative aims to raise awareness about the consequences of undeclared employment and protect workers' rights, as violations can lead to significant penalties for employers. • What to watch next: The effectiveness of the inspections and the potential for regulatory changes in response to the findings will be crucial in addressing exploitation and improving working conditions in the construction sector.

**Govt to Crackdown on Undeclared Construction Workers**

The Labour Inspection Service in Cyprus is set to launch a comprehensive campaign next month aimed at addressing the issue of undeclared workers within the construction industry. This initiative is designed to raise awareness among both employers and employees regarding the serious implications of undeclared employment and noncompliance with existing labour laws.

As part of the campaign, inspectors will conduct thorough checks to ensure that employers are adhering to basic employment conditions, including regulations related to working hours and weekly rest periods. The Labour Inspection Service emphasized that the inspections are not only punitive but also educational, aiming to foster a better understanding of the legal obligations surrounding employment.

Under current legislation, employers who are found to have undeclared workers registered with the social insurance fund face significant penalties. Initially, a fine of €1,000 is imposed for each undeclared employee for the month in which the violation is detected. This fine increases by €500 for every six-month period that the violation continues. For employers with a second offence within two years, the fine escalates to €2,000, and for a third or subsequent offence, the penalty can reach €3,000. However, employers may appeal for reduced fines if they can demonstrate that the period of violation was shorter than reported.

To facilitate reporting of undeclared work or breaches of employment terms, the Labour Ministry has established a hotline (77778577) that allows for both anonymous and named reports. This measure aims to encourage individuals to come forward with information regarding noncompliance in the industry.

Concerns about the treatment of workers in the construction and tourism sectors have been highlighted by various officials. House Labour Committee Chairman and Akel MP Giorgos Koukoumas recently raised alarms about the use of temporary employment agencies that supply workers to these industries, describing the practice as akin to "slave trade and human trafficking." He pointed out that such arrangements contribute to a "two-tier workforce," where workers are often subjected to degrading conditions and low wages. Koukoumas noted instances where workers are transported to job sites in buses or vans and left to work under poor conditions.

The Labour Ministry has acknowledged the existence of these troubling practices, and the Labour Committee is currently awaiting data on whether any sanctions or criminal proceedings have been initiated in response to these complaints. Koukoumas also expressed frustration over the delay in advancing a bill that would address the liability of main contractors in the construction sector, arguing that such legislation is essential to close loopholes that allow for exploitation.

In response to these concerns, Disy MP Andreas Constantinou emphasized the need for inspections to clearly differentiate between legitimate service contracts and the unlawful supply of labour through agencies. He indicated that if the inspections reveal gaps in the existing legal framework, there would be a readiness to explore necessary regulatory changes to ensure effective implementation and prevent exploitative practices.

The upcoming inspections and the broader campaign reflect the government's commitment to enforcing labour laws and protecting the rights of workers in Cyprus. As the construction industry continues to evolve, the focus on compliance and ethical employment practices is expected to play a crucial role in shaping a fairer working environment for all.

As the Labour Inspection Service prepares for this initiative, it remains to be seen how effective the campaign will be in curbing undeclared employment and improving conditions for workers in the construction sector. The collaboration between government officials, labour representatives, and the community will be vital in addressing these pressing issues and fostering a more equitable labour market in Cyprus.

Source: Cyprus Mail
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