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AVZ Law Office | Private Client Lawyers in Cyprus

LEGAL BRIEFING

Cyprus Law against Workplace Harassment and the Criminal Liability of the Employer

Cyprus Law 42(I)/2025 has created a stricter legal framework against workplace violence and harassment. For employers, directors and managers, the issue is no longer only an employment relations risk. In serious cases, it may carry criminal, civil and corporate liability.

Employment Law · Workplace Harassment · Updated July 2026 · AVZ Law Office
Workplace harassment complaints can carry employment, criminal, civil and reputational consequences when they are not handled with care.

The Briefing in One View

New Framework

Law 42(I)/2025 introduced a dedicated Cyprus framework for the prevention and combatting of violence and harassment in the workplace.

Wide Protection

The law covers conduct connected with work, including employees, employers, third parties and modern workplace settings such as digital communications.

Employer Duties

Employers must take active preventive measures, adopt appropriate policies and handle complaints confidentially and impartially.

Criminal Exposure

Individuals may face criminal penalties, while legal entities can also be exposed to separate corporate liability and civil claims.

Cyprus Enters a Stricter Era of Workplace Protection

Workplace harassment is often misunderstood as a matter of bad management, personality conflict or internal office tension. Under the new Cyprus workplace harassment law, that approach is no longer safe.
Law 42(I)/2025, officially dealing with the prevention and combatting of violence and harassment in the workplace, gives Cyprus a dedicated legal framework for conduct that may violate dignity, create a hostile working environment or cause physical, psychological, sexual or economic harm.

The law is important for employees who need protection, but it is equally important for employers, directors, HR teams and business owners. A complaint that is ignored, mishandled or punished can develop into a criminal, civil, employment and reputational problem.

What Law 42(I)/2025 Changed

The central change is that Cyprus now treats workplace violence and harassment as a direct legal issue requiring prevention, complaint handling, protection against victimisation and accountability. The framework is connected with Cyprus’s ratification of ILO Convention No. 190 on violence and harassment in the world of work.
The law does not focus only on traditional physical workplace incidents. It recognises that unacceptable conduct can occur through instructions, policies, threats, digital communication, remote work channels, social exclusion, verbal abuse, work-related sabotage and other forms of conduct connected with employment.

Why this matters for employers

An employer is expected to act before and after a complaint. Preventive policies, credible procedures, neutral investigation and protection from retaliation are no longer optional risk-management tools. They are part of the legal landscape.
The most dangerous workplace harassment case is often not the loudest one. It is the complaint that was ignored, minimised or punished.

Who Is Protected and Where the Workplace Begins

The scope of Law 42(I)/2025 is deliberately broad. It does not look only at a narrow employment relationship inside an office. It may cover employees, employers, third parties and persons connected with work, including situations arising through workplace interaction, complaint procedures or attempts to prevent harassment.
The concept of workplace is also wider than a desk or physical office. Work-related locations, rest areas, training locations, accommodation connected with work and digital communication channels may all be relevant depending on the facts.

Recruitment and early-stage protection

A modern harassment framework must recognise that vulnerability may arise before formal employment begins. Candidates, trainees, apprentices and persons in non-standard working arrangements may require protection where the conduct is connected with work.

Conduct That May Amount to Workplace Harassment

Workplace harassment does not always appear as a single dramatic incident. It may develop quietly through behaviour that damages dignity, isolates the employee or makes the work environment intimidating, hostile, humiliating or offensive.

Psychological Pressure

Belittling, intimidation, threats, humiliation, hostile treatment or behaviour that undermines dignity and mental well-being.

Social Exclusion

Deliberate isolation, exclusion from meetings, withholding information or cutting an employee out of work communication.

Verbal Abuse

Insults, shouting, degrading comments, repeated sarcasm or offensive language that creates a hostile workplace.

Work Sabotage

Unrealistic deadlines, meaningless tasks, deliberate confusion, excessive workload or withholding tools needed to perform.

Digital Harassment

Offensive emails, messages, online humiliation, hostile group chats or bullying through remote work platforms.

Sexual or Discriminatory Conduct

Unwanted sexual behaviour or harassment connected with personal characteristics, association or protected status.

Employer Obligations: Prevention, Policy and Complaint Handling

The law expects employers to take active steps to maintain a workplace free from violence and harassment. A passive employer who waits until the dispute becomes public or criminal may already be exposed.
A workplace policy is central. It should identify unacceptable conduct, explain complaint channels, protect confidentiality, provide for impartial review and make clear that retaliation against complainants, victims, witnesses or supporters is prohibited.
Where there is a credible complaint, the employer should not simply protect the alleged harasser because of seniority, business value or personal relationship. The response must be structured, documented and proportionate.

Criminal Liability of the Employer and Legal Entity

The criminal dimension is one of the most serious parts of the new framework. Individuals who engage in prohibited conduct may face imprisonment, fines or both. Conduct that obstructs complaint procedures or retaliates against a person who reports harassment may also carry criminal consequences.
The liability risk does not stop with the individual perpetrator. A company or organisation may also face liability where the offence is committed by a person exercising authority or acting on behalf of the legal person. Where persons in authority fail to prevent or respond properly to conduct by subordinates, corporate exposure may also arise.

Why directors and managers should care

For a business owner or director, the issue is not only whether harassment occurred. It is also whether management knew, should have known, failed to act, punished the complainant or allowed the workplace risk to continue.

How the Process May Begin

Internal Complaint

The employee may report the matter through internal channels. The employer should document, protect confidentiality and avoid retaliation.

Labour Relations Complaint

A complaint may be filed openly or anonymously through the Department of Labour Relations, which can lead to official review.

Police Report

Criminal proceedings require a police report. The police review facts and evidence before criminal charges may be considered.

Civil Claim

A victim may pursue compensation through civil proceedings for emotional, psychological, financial or reputational harm.

Comparative Case Law: Why Employer Liability Matters

Although Cyprus Law 42(I)/2025 is a domestic statute, comparative case law helps explain the wider direction of modern workplace harassment liability.
In Majrowski v Guy’s and St Thomas’ NHS Trust, the House of Lords considered whether an employer could be vicariously liable for harassment committed by an employee in the course of employment. The decision remains an important illustration of how workplace harassment may move beyond personal misconduct and become an employer liability issue.
In Coleman v Attridge Law, the Court of Justice of the European Union confirmed that protection under EU equality law may extend to discrimination and harassment by association. The case is useful because it shows that harassment analysis can look beyond the most obvious target and examine the real reason behind hostile treatment.

Evidence and Legal Strategy

A workplace harassment matter should be handled with discipline from the beginning. Emotional reaction is understandable, but legal strategy depends on evidence, timing, consistency and the correct forum.
Relevant evidence may include emails, messages, internal complaints, witness accounts, medical evidence, performance records, HR notes, termination letters, workplace policies, meeting invitations, screenshots and documents showing retaliation or changes in working conditions.
For employers, the file should show that the complaint was taken seriously, reviewed neutrally, handled confidentially and followed by appropriate measures. For employees, the file should show the conduct, the harm, the reporting history and the consequences suffered.

Common Risks in Workplace Harassment Cases

Ignoring the First Complaint

A complaint treated as gossip or personal tension may later become evidence that the employer failed to act.

Retaliation

Dismissal, demotion, pressure, isolation or unfavourable treatment after a complaint may create separate legal exposure.

No Policy

The absence of a clear workplace policy weakens the employer’s position and undermines internal complaint handling.

Weak Investigation

A biased, informal or undocumented investigation may damage the credibility of the employer’s response.

Poor Evidence

Employees and employers both lose legal strength when evidence is not preserved from the beginning.

Reputation Risk

Sensitive workplace allegations can quickly affect reputation, business relationships and internal trust.

External Sources Used

This briefing refers to the Cyprus workplace violence and harassment framework, Cyprus’s ratification of ILO Convention No. 190, and selected comparative case law on employer liability and harassment.

How AVZ Law Office Can Assist

AVZ Law Office can advise employees, employers, directors and business owners in sensitive workplace harassment matters, including complaint strategy, evidence review, pre-litigation steps, criminal process considerations, civil compensation claims and representation before courts or authorities.
For employers, legal advice may be required to review policies, respond to complaints, protect confidentiality, reduce retaliation risk and preserve the company’s position. For employees, legal advice may be required to understand the available routes, prepare the evidence and protect the claim from procedural mistakes.

Key Takeaways

Harassment Is Now a Legal Risk

Cyprus Law 42(I)/2025 treats workplace harassment as a serious legal issue with civil and criminal dimensions.

Employers Must Act

Policies, impartial complaint handling, confidentiality and protection from retaliation are central to compliance.

Evidence Decides Strategy

Employees and employers should preserve documents, messages, complaints and witness evidence from the earliest stage.

About AVZ Law Office

AVZ Law Office provides discreet legal counsel in Cyprus for private clients, business owners and international individuals requiring confidentiality, clarity and strategic legal protection.

Workplace Harassment FAQ

Practical questions for employees, employers, directors and business owners dealing with workplace harassment under Cyprus law.

What is Cyprus Law 42(I)/2025?

Law 42(I)/2025 is the Cyprus law dealing with the prevention and combatting of violence and harassment in the workplace. It creates obligations, complaint protections and potential civil and criminal consequences.

Does the law apply only to physical harassment?

No. It may cover verbal, psychological, sexual, economic, digital and other work-related conduct depending on the facts.

Can one incident amount to workplace harassment?

A single incident may be relevant where the conduct falls within the law’s definitions and causes or is likely to cause harm or a hostile work environment.

Can an employer be criminally liable?

Yes. Depending on the facts, individuals and legal entities may face criminal exposure, especially where persons in authority commit, allow or fail to prevent prohibited conduct.

Can a company be liable for acts of managers or directors?

A legal entity may be exposed where an offence is committed by a person exercising authority or acting on its behalf, and separate individual liability may still arise.

What penalties may apply?

Individuals may face imprisonment, fines or both. Legal entities may also face corporate fines and civil liability depending on the facts and applicable provisions.

What should an employer do after a complaint?

The employer should act promptly, preserve confidentiality, protect the complainant from retaliation, investigate neutrally and document the steps taken.

Can an employee file an anonymous complaint?

A complaint may be filed through official channels, and in certain cases anonymous reporting may be available. The correct route should be assessed according to the facts.

Is a police report required for criminal proceedings?

A criminal investigation normally requires a formal police report. Without that step, a criminal process may not properly begin.

Can the employee also claim compensation?

Yes. Civil claims for compensation may be pursued separately from criminal proceedings where the employee has suffered damage.

What evidence is useful in workplace harassment cases?

Emails, messages, screenshots, complaints, HR notes, witness evidence, medical evidence, termination documents and workplace policies may all be relevant.

How does a workplace harassment matter begin with AVZ Law Office?

It begins with a private enquiry and confidential review of the facts, documents, evidence, complaint history and the client’s objectives.
CONFIDENTIAL CONTACT

For workplace matters requiring discretion, make a private enquiry.

A confidential first discussion allows us to understand the facts, evidence, complaint history and the appropriate legal route.