Parliamentary committee discusses pension funds and labor exploitation issues

On September 22, 2026, the Parliamentary Committee on Labor, Welfare and Social Insurance in Cyprus held a session to discuss the regulation of professional pension funds and allegations regarding labor exploitation. Committee Chairman Giorgos Koukoumas highlighted concerns that some temporary staffing practices are linked to human trafficking and labor exploitation. The discussion on pension funds focused on a legislative amendment required to harmonize national law with European Union standards, while addressing government delays that previously prompted a reasoned opinion from the European Commission.

Separately, the committee examined systemic violations in temporary employment sectors. According to Andis Apostolou, Director of the Department of Labor Relations, authorities inspected 52 companies between 2024 and 2026 that rented out staff to hotels, restaurants, and construction sites. While most were compliant, three companies were found to be in violation of labor laws and have been referred for further action. The Ministry has been monitoring the situation since 2023, following changes in the employment status of persons with supplementary protection, and plans to continue its investigative efforts as the committee remains focused on rectifying these regulatory gaps.