Cyprus trade unions protest against illegal worker leasing in hospitality sector

On August 18, 2026, major Cypriot trade unions SEK and PEO issued a formal protest against the growing practice of "renting" staff in hotels and leisure centers. The unions claim that establishments are bypassing collective agreements and labor laws by utilizing intermediary staffing agencies to hire third-country nationals, who are originally recruited for other sectors like building or office cleaning.

According to SEK General Secretary Michalis Frangou and PEO official Neophytos Timinis, this practice is no longer limited to housekeeping or cleaning staff but has expanded to include waiters, bartenders, kitchen workers, and chefs. The unions characterize this trend as the creation of a "two-tier" or "two-speed" workforce, where employees lack the protections and terms established by sector-wide collective agreements. Frangou described the current hiring methods as reminiscent of a "slave market.

The unions have requested urgent intervention from the Labour Ministry and are demanding intensive inspections of both hotels and staffing agencies. Having already met with the labour department and sent formal letters to the labour relations department, the unions warned that if substantive regulatory action is not taken by September, they will initiate industrial action to curb the practice.