Collective Labour Agreements

Our Managing Partner Featured on Alpha Enimerosi to Discuss Collective Labour Agreements in Cyprus

Our Managing Partner,  Anastasia Schini Kakkoura appeared on Alpha Enimerosi, hosted by  Konstantina Neofytou and  Katia Savva, where she provided an insightful overview of Collective Labour Agreements (CLAs) in Cyprus, following the recent judgment of the Court of Justice of the European Union (ECJ) and the EU Directive 2022/2041.

During the discussion, she explained the key differences between individual and collective employment contracts. Individual contracts govern the personal terms agreed directly between an employer and a single employee, while collective agreements are negotiated between employers (and their associations) and employees through their unions, covering groups of employees or entire sectors. She also noted that collective agreements may include broad provisions reflecting wider objectives and aspirations of the negotiating parties not directly affecting the employer- employee relationship.

She outlined the main benefits for employees covered by CLAs, including stronger bargaining power, improved working conditions, higher remuneration, clearer working hours, leave entitlements, provident fund arrangements, and other allowances. In extent belonging to a collective labour agreement offers employees greater leverage in enforcing agreed terms through their unions and union actions.

At the same time, she emphasised the limitations of CLAs—such as their lack of flexibility, the fact that they are not directly enforceable unless incorporated into individual employment contracts, and the potential cost implications for smaller businesses.

The conversation also touched on the current landscape in Cyprus, where approximately 45% of employees are covered by collective agreements, particularly in sectors such as hospitality and tourism, construction, and certain public and semi-governmental organisations. A list of all collective agreements in effect can be found in the below link:

Finally, as a matter of completion reference must be made in this article to the misconceptions surrounding the EU’s reference to a target of 80% coverage of the employees by collective labour agreements stipulated in the Directive 2022/2041. This Directive concerns minimum wage frameworks, not the mandatory extension of collective agreements. The 80% figure functions as an indicator that may trigger action plans—not as an obligation to expand CLAs—an interpretation affirmed in a recent ECJ judgment.

The full interview is available below.

For more information on how these developments may affect your organisation, or for general Employment Law requests our team is available to assist.

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*The present is for informational purposes only and it does not amount to a legal advice or a full representation of the applicable law. The information contained in this publication is valid at the time of publication and the author bears no liability and/or responsibility should this change following publication.  You should not take any steps based on the information herein contained without receiving personalised and specialised legal advice. You may contact us at info@asklegal.com.cy or 00357 25 254006.