Cyprus tackles illegal employment
Cyprus tackles illegal employment
47 arrests in nationwide control of illegal employment in Cyprus
In a large-scale control operation against illegal employment, the Cypriot authorities have arrested a total of 47 people across the country. This was announced by the police on Friday.
Officials of the Foreigners and Immigration Service as well as employees of the Labour Inspectorate took part in the joint focus action.
16 catering and food establishments in various regions of the republic were inspected.
According to the authorities, all 47 people were arrested on suspicion of illegal employment. In nine cases, the accusation of unauthorized residence in the Republic of Cyprus was added.
Employers must also expect considerable consequences. The Labour Inspectorate imposed administrative fines totalling 195,000 euros on 16 companies because employees had worked without proper registration.
The police announced that such checks will continue regularly and nationwide in the future in order to consistently combat both illegal employment and violations of the right of residence. (cyprus-mail.com)
Why undeclared work is a serious problem for Cyprus
Illegal employment and undeclared work have been among the challenges of the Cypriot labour market for years. Sectors such as gastronomy, construction, agriculture, tourism and individual service sectors are particularly affected. For this reason, the authorities regularly carry out unannounced inspections. (gov.cy)
The effects extend far beyond individual violations. If employees are not properly registered, the state loses social security contributions as well as tax and contribution revenues. This is a considerable problem, especially for a comparatively small republic like Cyprus.
The social security system finances pensions, health services, unemployment benefits and other social benefits, among other things. If this income is permanently missing, the resulting financing gaps must ultimately be borne by honest employers and employees.
In addition, companies that properly register their employees and pay all statutory taxes can be disadvantaged compared to companies that artificially reduce their personnel costs through illegal employment. This creates distortion of competition to the detriment of law-abiding companies.
For this reason, Cyprus has significantly tightened sanctions in recent years. For any undeclared employee, heavy administrative penalties can be imposed from the first violation detected. Repeat offenders must expect significantly higher fines. (mlsi.gov.cy)
The current arrests and fines show that the Cypriot authorities are further intensifying their controls and are taking consistent action against undeclared work and illegal employment. The aim is to protect social security systems, ensure a level playing field and curb labour market abuse.
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Author: Redaktion
Source. Cyprus-Mail.com
https://cyprus-mail.com/2026/07/17/47-arrested-in-illegal-employment-crackdown
Disclaimer:
This image was created using AI and is intended solely as a visual representation of the depicted situation. It is not an authentic photograph of the actual event or the people involved.
This image was created using AI and is intended solely as a visual representation of the depicted situation. It is not an authentic photograph of the actual event or the people involved.