In Cyprus, the employment relationship is regulated by the Labor Code (Employment Law, 1967), which includes provisions relating to the probationary period, but the law itself does not set a specific duration for the probationary period. In most cases, the employer and the employee will agree on the terms of the probationary period in an individual employment contract. It is important that the contract clearly spells out all the terms of the probationary period, including its duration and objectives.

Legal grounds and duration of the probationary period

In Cyprus, the legislation does not prohibit the establishment of a probationary period, but limits its duration. According to the law, the probationary period usually lasts from one to six months. This gives the employer an opportunity to assess the employee’s qualifications and ability to cope with the tasks associated with the position for which he or she has been hired. Importantly, the probationary period is not mandatory and its use depends on the terms of the specific employment contract.

Dismissal on probation

In Cyprus, dismissal during the probationary period can be made without giving reasons, which is an important right of the employer. In case of termination of employment during this period, the employer is required to comply with minimum notice periods which depend on the length of employment. According to the Labor Code (Employment Law, 1967), if the employee has worked for less than 6 months, the notice of termination must be given at least 1 week before the contract is terminated. This notice gives the employee a chance to prepare for the termination.

In addition, in case of dismissal during the probationary period, the employer is not obliged to pay compensation, unless it is stipulated in the employment contract or contrary to applicable law. However, it is important that the dismissal is not discriminatory.

According to the Cyprus National Statistics Service, the percentage of employees dismissed during the probationary period varies considerably from sector to sector. In 2024, the highest number of probationary dismissals are recorded in areas such as IT, finance and management, where the proportion of dismissals in the first 6 months can be as high as 30%. However, in the healthcare and education sectors, such dismissals are less frequent – around 10-15%.

Protection of employees’ rights and restrictions

Whilst it is possible to dismiss without cause, there are restrictions on employers regarding discrimination. Under the Equality Law (Equality Law, 2004), dismissal cannot be based on discriminatory reasons such as gender, age, race or disability. The employer must comply with these regulations, which ensures that employees’ rights are protected even during the probationary period.

Recommendations

In order to avoid legal problems and simplify the dismissal process if an employee fails during the probationary period, it is recommended:

1. Clearly spell out the terms of the probationary period in the employment contract, including duration and objectives.
2. Establish criteria for evaluating the employee’s performance so that both parties are clear about expectations and results.
3. Comply with minimum notice periods for dismissal as required by law.
4. Ensure that the dismissal does not involve discrimination to avoid legal consequences.

Thus, the probationary period in Cyprus gives the employer flexibility when assessing a new employee, but it is important to comply with the law to protect the interests of both the employer and the employee.