Labour Ministry Raids Industrial Areas to Crack Down on Undeclared Work

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The Inspections Service is carrying out targeted checks across Cyprus this month, with fines starting at €1,000 per employee and rising for repeat offences.

The Labour Ministry's Inspections Service is carrying out targeted inspections at industrial areas across Cyprus this month, as part of a campaign against undeclared work and violations of basic employment legislation.

The Inspections Service of the Ministry of Labour and Social Insurance is conducting the checks island-wide throughout September 2026, focusing on industries and industrial areas.

What the campaign covers

According to a ministry statement, the aim of the campaign is to raise awareness among everyone involved in these economic activities about the consequences of undeclared work and non-compliance with the relevant legislation. Inspectors will also check compliance with basic terms of employment, including wages, working hours and weekly rest days.

Fines rise with repeat offences

Under the relevant legislation, if an undeclared worker is identified through the Social Insurance Fund, an administrative fine of €1,000 is issued per employee for the month in which the violation is found, rising by €500 for each of the following six months.

If undeclared work is identified for a second time within two years, the fine rises to €2,000. From a third offence onward, it rises to €3,000 for the current month, unless the employer can show the period of violation was shorter. If the violation period is shown to have been longer, the fine is multiplied by the actual number of months involved.

The ministry noted that the islandwide telephone line 77778577 accepts anonymous or named reports and information regarding undeclared work or breaches of employment terms.

Source: CNA