After a 15-year campaign, the Cyprus Bank Employees Trade Union (ETYK) has reached a settlement agreement with the management of the National Bank of Greece (Cyprus) over a long-running dispute concerning the Provident Fund, paving the way for the payment of nearly €1.5 million to eligible employees.
According to the union, the funds will be distributed to employees who were members of both the bank's staff and the Provident Fund on 1 January 2012.
Long-running dispute over Provident Fund provision
ETYK said the issue arose during the transition from a retirement gratuity scheme to a Provident Fund under the general agreement between the union and the Cyprus Banks Association.
The union maintains that the process was not implemented correctly by banks, resulting, in its view, in a negative impact on employees' rights. Despite disagreements that emerged over the years, ETYK said it remained committed to pursuing the matter and seeking redress for affected members.
Nearly €1.5 million to be distributed
According to information provided to staff, the total amount expected to be paid by the bank's management is close to €1.5 million and will be allocated among eligible beneficiaries.
ETYK clarified that not all current employees qualify for payment. Eligibility is limited to individuals who were members of both the bank's staff and the Provident Fund on 1 January 2012.
Verification process to determine payments
The union said it will first secure all necessary records and obtain individual confirmation from each eligible employee before calculating the amount due to each beneficiary.
According to ETYK, the calculations will be carried out based on the same principles and procedures applied in other banks where similar issues arose.
"We hope to return soon with further information and details on the procedure that will be followed, so that each colleague receives what is due to them," the union said.
