• Home
  • The Firm
  • The Team
  • Practice Areas
    • Corporate and Commercial
    • Dispute Resolution and Litigation
    • Information Technology and E-Commerce
    • Private Client
    • Real Estate and Estate Planning
    • Shipping and Maritime Law
  • Publications
    • Corporate and Commercial
    • Dispute Resolution and Litigation
    • Information Technology and E-Commerce
    • Real Estate and Estate Planning
    • Private Client
    • Shipping and Maritime Law
    • Careers
    • News
  • Contact
  • EN
  • RU

COVID-19 AND TERMINATION OF EMPLOYMENT

  • by Author
  • Apr 27
  • Comments (0)

Based on the World Health Organization’s declaration that the outbreak of Coronavirus (COVID-19) is a health emergency of international concern, the Republic of Cyprus has taken firm measures to fight the spread of COVID-19 in the country. Consequently, companies’ ability to do business has been affected, leading reduction of business activity and creating some serious concerns for employers who may try to reach for a solution relying on Article 5 of The Termination of Employment Law (N. 24/67).

According to Article 5(b) an employer may terminate the employment of an employee without compensation based on the ground of redundancy. In addition, Article 18(c)(viii) expressly states that reduction in the volume of work or business constitutes a reason for termination of employment.

However, would the above basis justify a termination of employment because of the pandemic effects?

According to the relevant case law, a redundancy is deemed legal when the employer demonstrates that the reasons for the redundancy will not be eliminated in the short term, but they will also extend to the unexpected future. More specifically, in the case of A. Iasonos Ltd v. Charalambou Christou and ors (1994) 1 AAΔ 703 (“Iasonos”), the Supreme Court stated that seasonal or periodic reduction in the volume of work which, when compared with the normal level of business activity, leaves the volume of work unaffected, does not justify termination of employment for redundancy.

In line with the above case-law, termination of employment at this stage, seems to be premature and cannot be justified on the grounds of redundancy considering two main factors. Firstly, the short time that has elapsed from the outbreak of the pandemic in Cyprus and secondly the existence of available alternatives i.e. participation in the Government Business Support Plans for as long as they remain available.

To conclude, it is likely that the reduction of the business activity caused by Coronavirus (COVID-19) will remain ongoing for unforeseeable time in the future. Although, the financial data that the employers currently possess supporting the lawfulness of a termination for redundancy are for a relatively short period and can not contribute to draw safe conclusions at this stage.

The above publication does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on our website are for general informational purposes only. We will be more than happy to provide you with professional legal advice on Employment Law and related matters so please do contact us at N. Mouktaroudes & Associates LLC.

Author

  • Share:
Previous Article: THE GDPR ICEBERG - DATA PROTECTION IN THE SHIPPING INDUSTRY
Next Article COVID-19 ΚΑΙ ΤΕΡΜΑΤΙΣΜΟΣ ΑΠΑΣΧΟΛΗΣΗΣ

Categories

  • Careers
  • Corporate and Commercial
  • Dispute Resolution
  • IT and E-Commerce
  • Migration and Immigration
  • News
  • Private Client
  • Real Estate and Estate Planning
  • Shipping
  • Uncategorized

Recent Posts

  • Public access to beneficial ownership information: Αn infringement of the right to respect private life and the protection of personal data enshrined in Articles 7 and 8 of the EU Charter, held the CJEU.
  • The Shipping Limited Liability Company (S.L.L.C.) Law of 2022
  • Purchase and Transfer of Immovable Property in Cyprus
  • Αγορά και Μεταβίβαση Ακίνητης Ιδιοκτησίας στην Κύπρο
  • Proportionality and the Covid pandemic – Communauté genevoise d’action syndicale (CGAS) v. Switzerland

© Copyright 2023 | Mouktaroudes Law | All right reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.
Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT