Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

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

Articles 2, 4 and 5 of the Convention. Contractual provisions. Inspections and sanctions. Application of the Convention in practice. The Committee notes the Government’s indication that the Model Rules of 21 September 1977, which give full effect to the provisions of the Convention, remain in force. The Government adds that there have been no legislative changes during the reporting period that have had any impact on their application. The Government indicates that measures were introduced in 2012 aimed at ensuring the effective enforcement of the obligations of the main contractor and subcontractors under the provisions of the relevant sectoral collective agreement. These measures include the requirement that, in the event that the main contractor or subcontractors must hire staff for the work to be undertaken under the public procurement contract, hiring must be done through the Labour Office and staff must be drawn from the official lists of unemployed persons. A reporting system has also been introduced according to which the main contractor is required to keep and update weekly records of workers it or its subcontractors employ. Records are to be provided to the project engineer designated by the authorizing public authority, who is required to send the data on a monthly basis to the Department of Labour, the Department of Labour Relations and the Social Insurance Service. In addition, before the project engineer may sign off on the work performed by a subcontractor, the latter is required to provide a certificate confirming payment of all social security contributions. In the event that the main contractor fails to provide the required records to the project engineer, the project coordinator is entitled to withhold up to 20 per cent of the salaries of the employees for whom records have not been provided. The Committee notes that, in 2015, 3,000 employers carrying out public procurement projects were inspected and 100 cases of violations of contract were found by the Department of Labour Relations. These led to deductions from the payments made by the Government to main contractors under the respective public procurement contracts totalling approximately €400,000 for 2015. The Committee notes the Government’s indication that, under the 2012 measures, contractors and subcontractors are excluded from undertaking public works if, within the preceding three years, they have been convicted for non-compliance with the minimum wage order or for having employed illegal workers or persons who are not registered in the social security system. The Government notes that fines for the employment of illegal workers were increased from €100 per worker per day to €500 per worker per day. The Committee requests the Government to continue providing up-to-date information on legislative changes, as well as information, including statistical information, relating to the system of inspection and sanctions, including the number and nature of the violations detected and the sanctions applied.