Instead of reducing problems linked to the employment of third-country nationals in Cyprus, the Cypriot Labor Ministry’s new electronic platform appears to be creating further distortions in the labor market, as applications can be submitted without sufficient verification and monitoring, industry insiders warn.

The management of foreign workers’ employment has become one of the most pressing issues facing Cyprus’ labor market in recent years. The issue has once again come under the spotlight after trade unions raised concerns over continued cases of worker exploitation. Unions have also pointed to violations of collective agreements, where they exist, resulting in foreign workers receiving wages below the agreed-upon levels.

Trade unions SEK and PEO recently said the illegal practice of companies “renting out” workers to businesses in sectors such as hospitality and tourism continues, creating labor market imbalances and raising questions over legality and oversight.

Professionals told Kathimerini that Cyprus’ strategy for employing third-country workers has led to a major increase in foreign labor inflows, changing the way applications for work permits are handled.