The Cypriot government has published two draft bills for public consultation until 24 September, proposing significant changes to the employment framework for people working through digital platforms such as food delivery services and ride-hailing applications.
The legislation, prepared by the Department of Labour Relations, aims to align Cyprus with EU Directive 2024/2831 on improving working conditions in platform work.
Two draft laws
The proposals include:
- The Social Insurance (Amendment) Law of 2026
- The Regulation of Working Conditions of Platform Workers Law of 2026
The legislation aims to:
- Facilitate the determination of the correct employment status of platform workers.
- Promote transparency, fairness, human oversight, safety and accountability in algorithmic management.
- Improve transparency regarding platform work, including cross-border activities.
- Strengthen the protection of personal data.
Presumption of employment relationship
One of the most significant provisions introduces a legal presumption of employment.
Any contractual relationship between a digital labour platform and a person performing platform work will be presumed to be an employer-employee relationship where facts indicate that the platform exercises direction and control over the worker.
The presumption may be triggered following a request by a worker or their representative to the Director of Social Insurance Services, or through an investigation initiated by the Director where there are concerns that a worker's contractual status has been incorrectly classified.
Burden of proof shifts to platforms
If a digital labour platform wishes to challenge the presumption, it will be required to demonstrate that the contractual relationship is not one of employment.
The Director of Social Insurance Services will issue guidance and circulars explaining how the presumption should be applied and how platforms can comply with the new requirements.
The guidance will also cover:
- Procedures for rebutting the legal presumption.
- Early identification of potentially non-compliant platforms.
- Enforcement actions against platforms that fail to comply.
- Inspections and compliance checks.
- Training and technical expertise for authorities overseeing algorithmic management systems.
Rules for platform working conditions
The second draft law establishes minimum rights for platform workers across the European Union.
The legislation will apply to:
- Digital labour platforms organising platform work within the EU, regardless of where they are established.
- Individuals who work, or are deemed to work, under an employment contract or employment relationship according to the case law of the Court of Justice of the European Union (CJEU).
- Measures governing the processing of personal data and the use of algorithmic management systems.
The minister will be empowered to appoint inspectors and other officers where necessary to ensure effective implementation.
Limits on automated decision-making
The proposed legislation includes restrictions on the processing of personal data through:
- Automated monitoring systems.
- Automated decision-making systems.
It also introduces transparency requirements regarding how such systems operate and affect workers.
Penalties for violations
Digital platforms and employers that breach the law could face criminal penalties.
On conviction, offenders could be subject to:
- Imprisonment of up to six months, or
- A fine of up to €5,500, or
- Both penalties.
The severity of sanctions would depend on factors including the nature, seriousness and duration of the infringement, as well as the number of affected platform workers.
