Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

Protection of Wages Convention, 1949 (No. 95) - Cyprus (Ratification: 1960)

The Committee has been following for a number of years the Government’s efforts to draft and adopt new legislation on the protection of wages with a view to ensuring full legislative conformity with the Convention. In its last report, the Government indicates that the Law Office of the Republic has completed the legal vetting of a new draft law, which was originally prepared in May 2003 by a Tripartite Technical Committee of the Labour Advisory Board, and that the finalized text would now be submitted to the Council of Ministers for approval. While noting the Government’s renewed assurances that all the requirements of the Convention have been duly taken into account, the Committee requests the Government to transmit a copy of the new legislation as soon as it is enacted.

In addition, the Committee notes with interest the information provided by the Government on the financing, administration and payment procedure of the Insolvency Fund which was set up under Act No. 25(I) of 2001 concerning the protection of employees’ rights in the event of the employer's insolvency. The Insolvency Fund is administered by a Board with a tripartite composition consisting of members of the Social Insurance Council. It is financed each month with a transfer of 16.6 per cent of the contributions paid by employers to the Redundancy Fund and covers service-related claims of all employees, including trainees, on condition that they have been continuously employed by the insolvent employer for not less than 26 weeks prior to the insolvency. Beneficiaries are entitled to payment of outstanding wages for the last 13 weeks of employment up to a maximum weekly wage not exceeding four times the amount of the basic insurable earnings which is determined each year under the Social Insurance Law (maximum amount set at £329,60 for 2006). An application must be submitted within three months from the date of the insolvency and payments are made by cheque to be cashed within six months from the date of issue. The Committee avails itself of this opportunity to draw once again the Government’s attention to the provisions of the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173) which was designed as a modern and flexible instrument offering a wide range of options to ratifying member States. Noting the Government’s indication that the ratification of Convention No. 173 is currently under consideration by the Social Insurance Services, the Committee asks the Government to keep the Office informed of any decision taken in this regard.