Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Cyprus (Ratification: 1960)

Article 2 of the Convention. Insertion of labour clauses in public contracts. Further to its previous comment, the Committee notes the Government’s indication that the Model Rules of 21 September 1977, which give full effect to the requirements of the Convention, remain in force irrespective of recent reforms in its public procurement legislation, i.e., the adoption of the new law on the award of public contracts (supplies, works and services) in 2003, the issuance of regulations under section 65 of that law in April 2004, and the adoption of the law on the coordination of procedures for the award of public contracts (supplies, works and services) repealing the above instruments in 2006. The Committee requests the Government to keep the Office informed of any legislative changes which may have a possible impact on the application of the Convention.

Articles 4 and 5 and Part V of the report form. System of inspection and sanctions. Practical application. The Committee notes with interest the information provided by the Government concerning the establishment by the Department of Labour Relations and the Department of Labour and Social Insurance Services of a special task force of inspectors for ensuring that collective agreements are applied effectively by main contractors and subcontractors undertaking public procurement work. It also notes the statistical information, according to which in 2010, this joint task force carried out 26 nationwide inspections specifically geared towards public procurement projects; in six cases, the main contractor was found to be in violation of the relevant sectoral collective agreement, while in 12 cases both the main contractor and the subcontractors were found in contravention of the applicable collective agreement. The inspection results show that the main infringements relate to the non-payment of social insurance contributions and the payment of wages at a lower rate than that provided for by the collective agreement. As regards sanctions, the Committee notes the Government’s indications that apart from deducting unpaid wages from payments owed to the contractor, public authorities have the right to deduct a fine of 10 per cent of any unpaid sums to social insurance funds for every day the contractor fails to settle the dues owed to these funds. The Committee would appreciate if the Government would continue providing up to date information on the system of inspection and sanctions, or other enforcement measures, for ensuring compliance with the terms of labour clauses in public contracts.