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5 HR issues to consider when starting an offshore business in Cyprus | HRZone

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5 HR issues to consider when starting an offshore business in Cyprus

james_sheehan Hr Consultant, Freelance 24th May 2013

As an EU member where the majority of people speak very good English, Cyprus is a very attractive country for British companies wanting to operate abroad. However, although EU rules make it relatively easy for companies and individuals to set up business in Cyprus, there are a number of issues to take into account when thinking about Human Resources. Around 95% of the population speaks English, and you'll find most companies are happy to conduct business in this language. The Cypriot Government has an English version of its website with a lot of useful information about setting up a business in the country, but you will also need people fluent in Greek on board, as some of the information and forms are in Greek only. Employment It's relatively straightforward to employ an EU national in Cyprus, but there are local labour laws, administrative rulings and precedents to take into account, so having an HR function with Cypriot expertise on board is vital. The HR laws affect issues including overseeing employees and their organisations, the minimum wage, holiday entitlement, maternity leave, trade unions, disability, equal opportunities etc. The employment of staff can be affected by many factors, such as longevity of service, social charges, collective agreements, qualification and experience, and so on. Social Insurance Social Insurance is compulsory for every employee in the Republic of Cyprus, and every employer has to register with the Employer’s Register of the Social Insurance Services, so you'll need someone able to set up and administer it. The contribution is 17.9% on every employee's insurable earnings, and it is...