Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

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

Further to its previous observation, the Committee notes the Government’s statement that in May 2003 the Tripartite Technical Committee of the Labour Advisory Board completed the drafting of a new law on the protection of wages which will ensure full legislative conformity with the Convention. The Government adds that the draft text will be transmitted to the full Board for consideration and approval before being submitted to the Council of Ministers. The Committee notes the Government’s assurances that the new legislation takes satisfactorily into account all the requirements of the Convention and the Committee’s past comments. The Committee requests the Government to keep it informed of any further progress made towards the adoption of the new legislation and to provide a copy as soon as it is enacted.

In addition, the Committee notes with interest the adoption of Act No. 25(I) of 2001 concerning the protection of employees’ rights in the event of the employer’s insolvency which provides for the establishment of a wage guarantee fund. The wage guarantee fund covers unpaid wages for the last 13 weeks of work as well as claims for holiday pay and end-of-year bonuses, up to a weekly ceiling equivalent to four times the basic weekly wage used for the assessment of social security contributions. In this connection, the Committee wishes to draw the Government’s attention to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173), which marks a clear improvement over the standards set out in Article 11 of Convention No. 95 and which provides for a distinct set of principles for the protection of workers’ claims by means of a privilege or through the intervention of an independent guarantee institution or both in combination. Hoping that the Government will give favourable consideration to the ratification of the above instrument, the Committee would appreciate receiving additional information on the operation of the wage guarantee fund including copies of any regulations which may have been issued under section 8(2) of Act 25(I)/2001 regarding its financing, administration and payment procedure.