Parliament scrutinizes worker leasing amid concerns of illegal employment and modern-day slavery
The issue of worker leasing has come under intense scrutiny in the Cyprus Parliament following rising complaints and reports linking the practice to illegal employment and human trafficking. While some stakeholders label worker leasing as modern-day slavery, others argue for a clear distinction between lawful service procurement and illegal acts. Investigations by the Department of Labour from 2024 to 2026 found potential labor law violations in only three out of 52 cases, highlighting the challenges in proving wrongdoing.
The construction and hotel sectors, where worker leasing is explicitly prohibited, remain hotspots for unauthorized employment agencies operating without licenses. On-site inspections focus on indicators such as wage payments, supervision, and use of equipment to identify illegal placement. Temporary assignments to indirect employers are limited to four months, with a maximum total duration of 12 months, but unauthorized agencies continue to pose significant problems.
Trade unions warn that worker leasing fosters exploitative conditions, urging stricter enforcement and penalties. Labour Committee Chairman George Koukoumas noted parliamentary discussions followed union complaints about widespread unauthorized leasing, often involving degrading transport and work conditions. Authorities await more data from the Ministry of Labour on resolved cases and legal actions as the debate over balancing legitimate services and illegal employment continues.
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