Labor unions report illegal employee leasing in construction and tourism sectors

Labor unions in Cyprus, including SEK, PEO, and DEOK, have formally complained about the illegal practice of 'employee leasing' in the construction and tourism industries. Adamos Katalanos, Secretary General of the PEO Builders' Union, stated that the phenomenon, which violates labor laws and collective agreements, was brought to the attention of the Minister of Labor on June 24. Unions argue that this practice creates two tiers of workers, undermines social security contributions, and contributes to broader market deregulation. There are concerns that this tension is linked to recent unrest in Xylofagou. In response, the Ministry of Labor has rejected the practice and committed to intensifying inspections to uphold legal standards. The unions have warned that they will take dynamic measures if the issue is not resolved by September. Other pending issues include the expansion of collective agreements, the implementation of the minimum wage, and the rise of undeclared work.