Cyprus labour shortages fuel debate over agency hiring as work permits reach 26,710

Nicosia, Cyprus. Labour shortages in construction and hospitality have intensified debate over the treatment of foreign workers and the use of temporary hiring agencies. The Cyprus Mail examined the rules for legally employed third-country nationals and asylum beneficiaries entitled to work.

Unions raise concerns over agency hiring

Earlier this month, MPs relayed complaints in parliament linking temporary employment agencies to “slave trade” and “human trafficking”. Trade unions SEK and PEO condemned some agency practices, accusing operators of “renting” workers, including chefs and maids, and creating a restrictive labour market environment.

The unions warned that reliance on foreign work permits could undermine collective agreements and local labour rights. They called for strict inspections and ministry intervention.

Thousands of Syrians legally residing in Cyprus have returned to Syria since late 2024, reducing the foreign labour pool, particularly in construction. The government has recently reached bilateral “structural mobility” arrangements with countries including Egypt and India.

Rules for employing non-EU nationals

The Deputy Ministry for Migration and International Protection told the Cyprus Mail that third-country nationals may work in sectors permitted under labour migration policy, subject to approval by the Department of Labour and the Migration Department.

These sectors include agriculture, livestock farming, food delivery, manufacturing, wholesale and retail trade, along with other occupations facing shortages under the general employment category. Domestic work is a separate, major sector open to non-EU nationals. Separate migration programmes govern employees of foreign-interest companies and other highly skilled workers.

Work permit figures

At the end of August 2026, there were 26,710 valid residence and work permits in the general employment category. Most permit holders were from Nepal, India, Egypt, Bangladesh, Sri Lanka and the Philippines. Smaller numbers were from Pakistan, Vietnam, Russia and Lebanon.

Nepalese nationals accounted for 28.8 per cent of the total, followed by Indian nationals at 21.9 per cent.