Trade unions protest against illegal worker leasing in Cypriot hotels

Trade unions SEK and PEO have formally accused the Cypriot hotel industry of violating labor laws and collective agreements by outsourcing staff through third-party agencies. According to union officials, including SEK General Secretary Michalis Frangou and PEO Secretary-General Neophytos Timinis, hotels are increasingly hiring third-country nationals originally recruited for other sectors such as cleaning or construction. This practice bypasses standard employment protections and creates a two-tier workforce, with some officials characterizing the working conditions as a "slave market.

In response to these allegations, Labor Minister Marinos Moushouttas held a meeting in Nicosia on August 19, 2026, stating that the government would not tolerate such practices. The Minister pledged that the Ministry of Labour and the Department of Labour will conduct intensive inspections to investigate the claims and ensure that employment rights are upheld regardless of a worker's origin or background. While the Minister expressed a goal to eliminate these practices, he also encouraged the public to report specific cases with names to facilitate legal action. The unions have warned that they may initiate industrial action if substantive progress is not observed by September.