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A European labor directive sparks reactions in Cyprus

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@fyinews team

21/05/2026

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  1. The European Commission is pushing, through a bill aimed at supporting and promoting start-up companies, for hiring conditions to be determined based on a company’s country of origin rather than the country where the employee actually works.
  2. For example, if a Cypriot company also operates in Spain, employees in Spain would be hired under employment terms that apply in Cyprus.
  3. The proposal has triggered reactions from the European Trade Union Confederation, which warns that it could affect collective agreements, labor rights and pension systems.

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The European Commission is pushing, through a bill aimed at supporting and promoting start-up companies, for hiring conditions to be determined based on a company’s country of origin rather than the country where the employee actually works.

For example, if a Cypriot company also operates in Spain, employees in Spain would be hired under employment terms that apply in Cyprus.

The proposal has triggered reactions from the European Trade Union Confederation, which warns that it could affect collective agreements, labor rights and pension systems.

During protests against the Bolkestein Directive, the “Polish plumber” working in Brussels on a Polish salary became a symbol of the debate.

The discussion is being compared to the Bolkestein Directive, which sparked major reactions around 20 years ago because of the “country of origin principle.” The directive proposed that companies could operate in another country while applying the labor and tax rules of their own home country. In the end, the provision was removed before the directive was approved in late 2006.

Beyond this issue, discussions within the European Trade Union Confederation also focused on the EU’s 2028–2034 Multiannual Financial Framework. According to Phileleftheros, the framework could create conditions for greater financial support for workers in Cyprus, particularly unemployed people and vulnerable social groups.

It could also provide access to funding aimed at combating poverty and supporting social cohesion.

 

Source: Φιλελεύθερος

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