Employment law issues arise in most corporate transactions, whether it is a share sale or purchase, business transfer or other similar transaction. In the context of merger and acquisition transactions, employment law issues may be critical to the transaction.
A Joint Venture is where two parties agree to pool their resources for the purpose of accomplishing a specific task. A joint venture can be created by (a) a contractual agreement between the parties (b) setting up separate legal entity (c) establishing a partnership and (d) establishing a European Economic Interest Grouping
There are no specific regulations in the Cypriot legal system regarding employee ownership or profit-sharing schemes. An employer can gift shares in their business to their employers or they can set up a share acquisition scheme to allow employees to acquire a stake in the business they work for or another company within the group.
Cyprus law allows businesses to protect themselves against the unauthorised disclosure of trade secrets and confidential information by both current and former employees to third parties. The extent of the protection allowed depends on the nature of the information which the employer is seeking to protect. An employer and employee or worker might agree to an confidentiality clause / non-disclosure agreement…
Cyprus Company Law is based on the principle of the majority rule. As a general principle, a Cyprus court will not interfere in the management of a company. However, in cases where shareholders are oppressed by the controlling or majority or the board of a Company, a minority or oppressed shareholder can seek redress and protection from a Cyprus court.
Each employee who works 48 weeks within one year is entitled to paid annual leave with pay of four weeks. Employees, who work 5 days a week, are entitled to annual leave of 20 working days, whereas employees who work 6 days a week, to annual leave of 24 working days. Temporary absence from work due to an accident, sickness, maternity, parental leave or leave on grounds of force majeure, is considered as a working period.
An employed pregnant woman is entitled to maternity leave for 18 consecutive weeks. Nine of the weeks must be taken within the period beginning on the second week before the week of expected childbirth.
Female employees who adopt a child under the age of 12 years and who has notified the Department of Social Welfare Services of the adoption are entitled to 16 continuous weeks maternity leave starting immediately from the date on which care of the child begins. The employee has an obligation to inform her employer, at least six weeks in advance, of her intention to adopt a child and of the date of taking the care of the child.
Under Cyprus law there is an implied duty of fidelity that is the basis for the existence of a contract of employment. An employee during the course of the employment relationship must offer his services to in a trustworthy and faithful manner. Covenants not to compete, solicit or act in a manner which is prejudicial to his or her employer’s interests for the duration of the employment may be implied even if they are not expressed on the employment agreement.
Cyprus Companies Law, Cap 113 implemented Directive 2005/56/EC on cross-border mergers of limited liability companies (Cross-border Mergers Directive). Cyprus company law provides the framework for cross-border mergers between companies in Cyprus and companies from other EEA states.
The main organisational forms used for non-profit / volunteer organisations in Cyprus are associations/societies, foundations/institutions and non-profit companies. In certain cases and upon satisfying specific criteria, tax exemption may be obtained.