**NICOSIA, CYPRUS** – In a significant policy shift aimed at alleviating persistent labour shortages, Cyprus has introduced a new labour decree that substantially broadens the scope of employment opportunities for third-country students. The legislation, officially published in the Government Gazette, permits these international students to seek work across an expanded range of sectors and professions, marking a strategic move by the government to bolster its workforce.
The decree, spearheaded by Labour Minister Marinos Moushouttas, allows eligible students to commence employment from the moment they have successfully completed their initial academic semester and are officially registered for their second. This provision is particularly pertinent to sectors experiencing acute deficits, namely hospitality, healthcare, and manufacturing, which have been grappling with recruitment challenges for some time. The intention is to tap into a readily available pool of motivated individuals already residing within the country, thereby offering a more immediate solution than traditional immigration channels.
This regulatory amendment stems from extensive deliberations and consultations involving key social partners, including the Employers and Industrialists Federation (OEB) and the Cyprus Workers' Confederation (SEK). The objective is to create a more flexible labour market that can respond dynamically to economic demands. For employers, this presents an opportunity to fill critical vacancies, while for students, it offers a pathway to gain practical experience and contribute financially during their studies.
However, the implementation of this new framework necessitates strict adherence to established procedures. Both employers and students are now required to furnish the Department of Labour with specific documentation to ensure the legality and legitimacy of any employment arrangement. This includes a certificate verifying the student's full-time enrolment status at an educational institution, a valid residence permit, and a formal employment contract that must be officially endorsed by the Department of Labour. The OEB has proactively issued guidance to its member businesses, urging them to thoroughly familiarise themselves with the intricacies of the new decree to ensure compliance.
While the decree is largely welcomed as a pragmatic response to economic realities, it has also sparked cautious commentary from labour unions. Andreas Matsas, General Secretary of the SEK union, acknowledged the decree’s utility as a provisional measure for the labour market. Nevertheless, he voiced a preference for a more overarching and comprehensive strategy for regulating the employment of third-country nationals.
Matsas further articulated concerns regarding the potential downstream effects of this new arrangement. He expressed apprehension that the decree, if not carefully monitored, could inadvertently contribute to a further deregulation of the labour market. More pressingly, he highlighted the risk of vulnerable students falling prey to exploitation by unscrupulous employers, a scenario the union is keen to prevent. The emphasis, therefore, lies on ensuring that the expanded employment rights do not come at the cost of worker protections or fair labour practices. The long-term success of this initiative will undoubtedly hinge on balancing the urgent need for labour with the imperative to safeguard the rights and well-being of all workers in Cyprus.