Latest updates

Legal reform proposals over appointment of receivers
George Z Georgiou & Associates LLC
  • Insolvency & Restructuring
  • Cyprus
  • June 08 2018

Members of Parliament have proposed legal reforms with the aim of regulating the procedure for the appointment of receivers by debenture holders. The issues under scrutiny are that borrowers have no say during the procedure for the appointment of a receiver, and that issues with the impartiality of the receiver can arise on many occasions. However, the proposal has encountered the resistance of financial institutions.

New legislation for pregnant women and new mothers in workplace
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • June 06 2018

Parliament recently introduced new legislation that aims to promote and support breastfeeding in the workplace and enhance the legal protection for working pregnant women and new mothers. One law established the minister of health as the competent authority for the promotion and protection of breastfeeding, while another extended the period during which pregnant women are protected against dismissal and established the right for working mothers to breastfeed or pump and store milk in the workplace.

Court finds real likelihood of bias and orders arbitrator's dismissal
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • May 24 2018

In a recent Limassol District Court case, the applicants applied for the dismissal and replacement of an arbitrator. They argued that the relationship between the arbitrator and the respondents' main witness in the arbitration proceedings and his brother would lead a reasonable person to find that there was a real likelihood of bias. As a result, the applicants argued that the relationship between the parties constituted misconduct in arbitration proceedings.

From Russia with love? District court rejects application to enforce Russian arbitral award
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • April 12 2018

In a recent Limassol District Court case, the applicants requested the registration and enforcement in Cyprus of a Russian arbitral award. Τhe court found that the applicants had failed to provide evidence of whether Russia was a contracting state to the New York Convention and that the award's translation did not fulfil the convention's requirements. As a result, the application to register and enforce the arbitral award was rejected.

Imposition of fine on company in liquidation
George Z Georgiou & Associates LLC
  • Insolvency & Restructuring
  • Cyprus
  • March 23 2018

A district court recently sentenced a company in liquidation that had once been Cyprus's biggest grocery retail company. The sentence concerned the issuance of a cheque with insufficient funds. According to the court, the fact that the company was under liquidation did not negate the fact that a sentence should be proportionate to the offence and act as a deterrent. The case is a useful illustration of how companies in liquidation should be treated when it comes to the imposition of fines.

New definitions of employee 'undeclared work' and 'undeclared earnings' introduced
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • February 21 2018

The Social Insurance (Amendment) Law was revised in June 2017 to introduce definitions of 'undeclared work' and 'undeclared earnings'. 'Undeclared work' is defined as the insurable employment of an employee or a self-employed person which has not been declared to the Ministry of Labour, Welfare and Social Insurances, while 'undeclared earnings' are defined as the insurable earnings for which an employer has not submitted a statement of earnings and contributions within the required deadline.

Only arbitrator has locus standi before court regarding extension of arbitration procedure
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • February 15 2018

The Nicosia District Court recently issued an order which referred a dispute to arbitration. The order stipulated that the arbitrator should deliver a final decision within nine months. One of the parties applied to the court for an extension of the arbitration procedure. The court rejected the application on the ground that only the arbitrator had the right to apply for such an extension.

Disagreement over who is preferential creditor in liquidation of state-owned company
George Z Georgiou & Associates LLC
  • Insolvency & Restructuring
  • Cyprus
  • February 02 2018

The annual creditors' meeting of former state-owned air carrier Cyprus Airways recently took place. The state stepped in following the company's collapse and paid the majority of employees the money owed to them. Due to this payment, and by virtue of Section 300 of the Companies Law, the state became a preferential creditor, having made a payment that was owed to preferential creditors as a third party on behalf of the company.

Recent changes to employment law – an overview
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • December 06 2017

A number of new employment-related laws have been adopted in 2017, including the long-awaited Protection of Paternity Law and the Protection of Maternity (Amendment) Law, which introduced the concept of surrogacy. Amendments to existing laws regarding redundancy and smoking in the workplace have also been made.

Court rules that pending appeal does not suspend arbitral award
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • November 30 2017

The Limassol District Court recently concluded that an appeal pending before the English courts does not suspend an order's enforcement or diminish the validity of an arbitral award. The applicants had applied for the recognition and enforcement of an arbitral award issued in May 2016. The court held that the order was final and that there had been no abuse of process; the respondents' request to set aside the award was therefore rejected.

Parliament votes to introduce Protection of Paternity Law
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • October 11 2017

Parliament recently voted to introduce the Protection of Paternity Law. The law came into force on August 1 2017 and gives fathers in Cyprus the right to two consecutive weeks' paid paternity leave. The law has introduced statutory family-friendly rights to Cyprus for the first time, giving employers the opportunity to incentivise and support parents in their workforce.

Court applies res judicata in dismissing objection to recognition and enforcement of arbitral award
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • September 28 2017

In a recent Limassol District Court case, the applicants applied for the recognition and enforcement of an arbitral award issued by the Chamber of Commerce and Industry. The respondents had previously applied to the Cypriot courts to set aside and annul the arbitral award pursuant to the International Commercial Arbitration Law. In their objection to the application for the recognition of the award, the respondents advanced additional grounds to those raised in their earlier application to annul the award.

District Court of Limassol denies originating summons application
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • August 17 2017

The District Court of Limassol recently issued a judgment in relation to an application filed by the Cooperative Bank of Limassol in 2016. The applicants had sought a court order to cross-examine the affiant on certain paragraphs of his affidavit, which supported a 2014 application for the registration and enforcement of an arbitral award in Cyprus.

Court of Appeal overturns Industrial Disputes Tribunal decision
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • August 16 2017

The Court of Appeal recently overturned a decision of the Industrial Disputes Tribunal, stating that an employee's termination was not unlawful, but rather due to redundancy in accordance with the Termination of Employment Law. The employee had been served with a notice of termination which stated that her position would be abolished due to changes in the methods of production and modernisation of the organisation.

Supreme Court examines Rule 56 of Companies (Winding-up) Rules
George Z Georgiou & Associates LLC
  • Insolvency & Restructuring
  • Cyprus
  • July 28 2017

The Supreme Court recently examined the correct application of Rule 56 of the Companies (Winding-up) Rules, which regulates the procedure to be followed by the chair at a creditors' meeting in the case of an objection by a creditor regarding whether a proof of debt by another creditor must be accepted in order to determine the creditor's voting rights.

Employee provident funds payable on termination of employment contract
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • June 28 2017

In a recent Industrial Disputes Court case, four individuals sought the full payment of a provident fund which had been affected by the 2013 bank bailout. In making its decision, the court examined when the applicants' right to receive the provident fund had arisen and whether said amount had been affected by the 2013 bank bailout. It also considered whether the applicants had accepted the consequences of the 2013 bank bailout in writing.

Court considers scope of Article V(1)(c) of New York Convention
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • June 22 2017

The applicant in a recent case applied to the Limassol District Court for the registration and enforcement of an arbitral award which had been issued by the London Court of International Arbitration (LCIA). This case sheds light on the interpretation and application of Article V(1)(c) of the New York Convention and clarifies that an arbitral award, including an award for costs, is registrable before the courts even in cases where the LCIA has no jurisdiction.

Supreme Court considers Article IV of New York Convention for registration of arbitral awards
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • May 11 2017

In a recent Supreme Court case, the appellants challenged a first-instance court judgment which had refused the registration and execution in Cyprus of a foreign arbitral award issued by the International Commercial Arbitration Court. The appellants claimed that the first-instance judge had erred in concluding that the requirement under Article IV(1)(a) of the New York Convention had not been fulfilled.

Employment Tribunal confirms applicability of Law 98(I)/2003 for public employees
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • May 10 2017

The Court of Industrial Disputes recently examined a case in which two public sector workers claimed reinstatement and compensation for unlawful dismissal following the termination of their fixed-term employment contracts. The applicants argued that due to their length of service, their employment status should have been recognised as permanent under the Fixed-Term Employees (Prohibition on Discrimination) Law (98(I)/2003).

Implementing new EU Pensions Directive in Cyprus
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • March 22 2017

The new EU Pensions Directive (IORP II) recently came into force. The introduction of a number of important features and the widening of the scope of prudential supervision by competent authorities under IORP II is likely to be a challenge for the Cyprus regulator, which will need to recruit additional personnel and make changes to its existing structure in order to perform its supervisory review powers, duties and responsibilities effectively and fulfil the reformed regulatory framework's aims.