13th salary payment week for most is the current one. The history of the 13th salary goes back to 1925 where the demand for a 13th salary was first made.
In Cyprus, there is no law obliging private sector employers to to pay 13th and/or 14th salary. However, the 13th and/or 14th salary is paid in the cases where:
1. included in the collective agreement
2. included in an individual contract or employment agreement or other form of agreement
3. is included in the practice followed by the company.
Practice is created when, while there is no or there was a relevant written agreement, a 13th and/or 14th salary was given to employees in previous years.
In all above cases the payment of the 13th and/or 14th salary is mandatory according to the Salary Protection Law.
It is emphasized that based on the Transparent and Predictable Conditions of Employment Law of 2023, every employer is obliged to inform the employee in writing of the conditions of their employment, including the 13th and/or 14th salary, where and where it is given.
< p>The 13th salary was “christened” tip
The arrival of December, the last month of the year, brings the 13th salary back up to date. The decision of the Supreme Court of Cyprus (December 2019) (Criminal Appeal no. 151/2016) on an extremely important case regarding the 13th salary, coincided with its payment period. As if the universe conspired!
The saying “it is not a 13th salary, but a tip, and it will not be given this year” is heard more often from year to year. Using the first instance decision of the District Court of Famagusta (no. 1960/2014), we will explain when a benefit is considered a salary/13th salary. It is noted that the case in question was registered by the Department of Labor Relations, in the framework of its powers for the implementation of the Protection of Wages Laws of 2007 to 2012, following a complaint submitted by an employee.
A few words about the case. The complainant worked from 2004 to 2013 in a company dealing in timber trade. When he was hired it was agreed that he would receive a Christmas tip in addition to his monthly salary. The amount of the tip corresponded to approximately one month's salary and was received by all employees of the company in the month of December. The gratuity was paid to the complainant for 7 years, from 2004 to 2010, while for the years 2011, 2012 and 2013 it was not given to any employee of the company. The complainant did not consent, either in writing or verbally, to the non-payment of the Christmas tip.
The employee believed that this right related to the 13th salary, while the company strongly argued that it was a tip (payment as a favor). The position of the company is not at all accidental, but arises from the fact that extraordinary commissions and ex-gratia payments are not included in the concept of salary, as defined in the legislation for the protection of wages. Consequently, there is no obligation to pay them.
The Court of First Instance, however, had a different opinion. In a well-founded decision, which was later judged by the Supreme Court to be “entirely right, just and duly reasoned”, it concluded that the Christmas present is wages. We quote an excerpt from the decision, in which elements are recorded that played a catalytic role in its outcome:
“the Christmas Gift, which the 1st defendant gave consistently, regularly and specified, that is, every Christmas, was paid to the complainant Christmas Gift equal with his monthly salary approximately, it has the characteristics of a salary, as interpreted by the Law, in view of the fact that it clearly appears that this salary was given to all the employees of the 1st defendant.
I will agree with suggestion of Mr. Prodromos, that the fact that the 1st defendant referred to the salary as a Christmas Gift is irrelevant.
This fact is also supported by the very interpretation of the salary in the Law, where it is stated that “& #8221;salary” it means any monetary consideration….”. Therefore, salary is any benefit given in any form or name.”.
source: SIGMALIVE/Written by Christos Christou (Department of Labor Relations/Ministry of Labour)
