By Dorita Yiannakou and Shemaine Bushnell Kyriakides
A long-running problem in Cyprus’ labor market is still going strong: foreign workers brought into the country as hotel cleaners are ending up on construction sites, often through shell companies that exist largely on paper.
The system that was meant to regulate their work has instead created a loophole-filled landscape where corruption thrives, leaving the most vulnerable in the labor market to bear the costs.
According to information obtained by K, the practice of “sub-leasing” foreign workers has not only failed to disappear but appears to be spreading across different sectors of the economy. Fake or front companies are being set up to hire third-country nationals as cleaners, only to redirect them to other businesses owned by the same employer, usually in construction.
The practice is not new, but it has become more frequent in recent years. It was first seen mainly in hotels and is now increasingly common on building sites.
At the heart of the issue is money. Cleaning permits allow for lower wages than those set for construction workers and do not always require the application of collective labor agreements. This has created an incentive for some employers to sidestep higher pay scales and avoid collective contracts that apply in the construction industry.
At the same time, employers admit they struggle to find permanent staff willing to work in construction, a reality that has further fuelled the misuse of foreign labor permits.
‘A wound for labour relations’
“This is a serious blow to labor relations,” said Andreas Matsas, secretary general of the SEK trade union, warning that weak regulation and poor oversight have emboldened some employers to exploit loopholes in the system.
He said gaps and ambiguities in Cyprus’ strategy for employing third-country nationals have led to unfair competition between businesses and workers, undermining collective agreements and destabilizing the labor market.
The issue is well known to the Labour Relations Department, which is currently examining specific complaints involving both the hotel industry and construction sector. Department director Antis Apostolou confirmed that inspections have uncovered cases of illegal and undeclared work.
Trade unions are now pressing the issue politically and plan to raise it directly with Labour Minister Marinos Mousiouttas. They are also pushing for a long-discussed agreement, made verbally with President Nikos Christodoulides, that would link public contracts to the application of collective labor agreements.
“Public works are paid for by taxpayers,” Matsas stressed. “They should not be built on labor practices that undermine workers’ rights.”
He said there are documented cases of cleaning companies bringing foreign workers to Cyprus under one type of permit, only to subcontract them to another company owned by the same employer to perform work completely unrelated to their approved role. According to him, the cases involve a specific number of workers and two major companies.
Matsas also pointed to the abolition of a technical advisory committee, which previously allowed trade unions to assess employment permit applications based on real conditions in businesses. He warned that weakening the requirement for collective agreements when issuing work permits has further destabilized the labor market.
Inspections ongoing, dispute over ‘loopholes’
While unions argue the current strategy contains serious loopholes, Apostolou insists the problem lies not in the legislation itself but in how it is applied.
“There are no gaps in the strategy,” he said, noting that the framework for employing third-country nationals was revised and is being implemented accordingly. What is being observed, he added, are cases of poor or abusive application by specific companies.
According to the Labour Relations Department, most violations involve cleaning companies that bring workers into Cyprus with permits for cleaning duties, then assign them to construction sites, sometimes for site cleaning, but in other cases for full construction work, which their permits do not allow.
Apostolou said the phenomenon has become more frequent in recent years, shifting from hotels to construction. Workers hired as cleaners are typically paid less than construction workers, making it easier for employers to move them between sectors to cut costs or avoid collective agreements.
He stressed that inspections are ongoing and not based solely on complaints. Authorities also carry out targeted checks, risk assessments, and monitoring of employers with a history of violations. Where breaches are found, enforcement measures are taken.
It's not the exception; it's the rule
Third-country nationals are being brought to Cyprus under the promise of cleaning jobs in hotels, offices, and restaurants, only to end up on construction sites, sources tell Kathimerini. The practice exposes workers to unsafe conditions, lower pay, and a labor system riddled with loopholes, making accountability almost impossible.
But if anyone thought this was breaking news, they would be mistaken. Sources say the scheme has been quietly happening for years, an open secret whispered in corridors, known to employers, agents, and even authorities, yet largely tolerated. Workers are lured under one set of expectations—a single house, a hotel lobby to clean, or a straightforward construction role—only to discover the reality is very different. Some housemaids find themselves moving between three or four different homes. Others promised construction work receive less than the standard pay or are forced to pay agents a monthly “commission” for securing the job, despite contracts clearly stating that employers are responsible for these costs.
The consequences are more than financial. Many of the workers placed on construction sites lack the proper qualifications, increasing the risk of workplace injuries and deaths. Reports suggest such incidents have risen compared with last year, highlighting the real dangers that come with this mismanagement.
Labor unions have reportedly raised alarms with the Ministry of Labor, pointing to a system that allows companies to exploit loopholes in collective agreements and foreign worker policies. Critics say the strategy for foreign labor in Cyprus has not kept pace with the realities on the ground, leaving companies free to sidestep regulations while putting vulnerable workers at risk.
Corruption, sources say, is embedded at multiple levels. Labor agents, employers, and even parts of the bureaucracy operate in a web of approvals and selective enforcement. Responsibility is easily shifted, contracts are interpreted loosely, and accountability often disappears. “Everyone knows how the game is played,” one labor source said. “It’s systemic, not an isolated problem.”
Some businesses defend the practice, citing a shortage of European workers for construction and factory jobs. While there may be labor shortages in certain sectors, experts warn that turning to third-country nationals under misleading pretenses is not a solution; it is exploitation disguised as necessity. Workers are underpaid, unprotected, and exposed to dangerous conditions, while companies profit from bending the rules.
For the workers themselves, the stakes are high. Beyond lower wages and unfair fees, they face uncertainty, physical risk, and little recourse. The system that was meant to regulate their work has instead created a loophole-filled landscape where corruption thrives, leaving the most vulnerable in the labor market to bear the costs.
