Cyprus’ Aliens & Immigration Service and the Labour Inspection Department mounted a surprise, island-wide operation on 17 July that targeted restaurants, cafés and catering outlets in every district. In the space of a single afternoon officers checked 16 premises, detaining 47 people found working without the required residence or work permits. Nine of those arrested were also determined to be living in the Republic illegally. The joint action follows months of complaints from industry associations that undeclared employment is distorting competition and depressing wages in sectors that rely heavily on migrant labour. Inspectors say they deliberately hit businesses in peak tourist season to send a message that “cash-in-hand” hiring will not be tolerated. Employers caught in the sweep face administrative fines totalling €195,000 and possible criminal charges if repeat violations are uncovered. Authorities insist the crackdown is aimed as much at protecting legitimate workers as at enforcing immigration law. Undeclared staff have no social-insurance coverage, cannot access Cyprus’ national health scheme (GESY) and are vulnerable to exploitation. Officials added that inspections will now take place daily through August, with particular focus on coastal resort towns where seasonal demand is highest. For multinational hotel groups and tour operators the message is clear: ensure that subcontractors in Cyprus are following the rules. Compliance teams are being advised to review supplier contracts and insist on proof of legal payroll registration before the next audit cycle. Companies that fail to show due-diligence could be named in future enforcement bulletins, exposing them to reputational and legal risk. While the fines announced on 17 July are relatively modest by EU standards, the Interior Ministry has already drafted amendments that would treble penalties and introduce asset-freeze powers for persistent offenders. If adopted after the summer recess, the tougher framework could significantly raise the cost of non-compliance for Cypriot and foreign investors alike.
Source: KNEWS
