How should a probationary period be specified in an employment contract to simplify dismissal if an employee is not suitable?

In Cyprus, labor relations are regulated by the Employment Law (1967), which includes provisions relating to probationary periods, but the law itself does not specify the exact duration of the probationary period. In most cases, the employer and employee agree on the terms of the probationary period in an individual employment contract. It is important that the contract clearly specifies all the conditions of the probationary period, including its duration and objectives.

Legal grounds and duration of the probationary period

In Cyprus, legislation does not prohibit the establishment of a probationary period, but limits its duration. According to the law, the probationary period usually lasts from one to six months. This gives the employer the opportunity to assess the employee’s qualifications and ability to cope with the tasks associated with the position for which they were hired. It is important to note that probationary periods are not mandatory, and their use depends on the terms of the specific employment contract.

Dismissal during the probationary period

In Cyprus, dismissal during the probationary period can be carried out without giving reasons, which is an important right of the employer. In the event of termination of the employment contract during this period, the employer is obliged to comply with the minimum notice periods, which depend on the length of service. According to the Employment Law (1967), if an employee has worked for less than 6 months, notice of dismissal must be given at least 1 week before the contract is terminated. This notice gives the employee a chance to prepare for dismissal.

Furthermore, in the event of dismissal during the probationary period, the employer is not obliged to pay compensation unless this is specified in the employment contract or is contrary to applicable law. However, it is important that the dismissal is not discriminatory in nature.

According to data from the Cyprus National Statistics Service, the proportion of employees dismissed during the probationary period varies significantly depending on the sector. In 2024, the highest number of dismissals during the probationary period was recorded in areas such as IT, finance, and management, where the proportion of dismissals in the first six months can be as high as 30%. However, in the healthcare and education sectors, such dismissals
are less common, at around 10-15%.

Protection of employee rights and restrictions

Despite the possibility of dismissal without cause, there are restrictions on employers regarding discrimination. According to the Equality Law (2004), dismissal cannot be based on discriminatory grounds such as gender, age, race, or disability. The employer is obliged to comply with these regulations, which protects the rights of employees even during the probationary period.

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In order to avoid legal problems and simplify the dismissal process in the event of an employee’s failure during the probationary period, it is recommended to:

1. Clearly spell out the terms of the probationary period in the employment contract, including its duration and objectives.
2. Establish criteria for evaluating employee performance so that both parties are clear about expectations and results.
3. Comply with the minimum notice periods for dismissal as required by law.
4. Ensure that the dismissal is not related to discrimination in order to avoid legal consequences.

Thus, the probationary period in Cyprus gives employers flexibility in assessing new employees, but it is important to comply with the law to protect the interests of both employers and employees.