A Kathimerini investigation has exposed a sprawling underground system that now dominates Cyprus’ foreign-worker recruitment market. According to the Federation of Private Employment Agencies (FPEA), roughly 500 unlicensed labour brokers—twice the number of licensed agencies—are funnelling thousands of third-country nationals into low-wage jobs in tourism, construction and agriculture. The agents charge exorbitant “service fees,” then recover additional cuts from salaries via opaque deductions for housing, uniforms and even laundry.(knews.kathimerini.com.cy)
The story, published on 22 February, details how hotels and contracting firms bypass formal procedures to secure cheaper labour, undermining compliant agencies that must adhere to the Migration Code’s strict vetting and minimum-wage criteria. Workers interviewed reported contracts promising €1,400 monthly pay yet receiving little more than €500 after deductions. Many fear retaliation or revocation of their residence permits if they complain.
Amid this opaque recruitment landscape, VisaHQ’s Cyprus portal (https://www.visahq.com/cyprus/) offers employers and foreign workers an easy way to secure legitimate visas and work permits while staying compliant with local regulations—helping them steer clear of unlicensed brokers and avoid costly pitfalls.
![Illegal ‘shadow network’ outpaces licensed agencies in recruiting foreign workers to Cyprus]()
The exposé comes as Cyprus prepares to update its National Employment Strategy to address critical skills shortages ahead of the 2027 EU Presidency. Business groups worry that tolerance of illegal brokers could tarnish the island’s reputation as a high-quality tourism and services hub, just as visitor numbers hit record highs. They are lobbying for a digital licensing register, mandatory escrow accounts for recruitment fees and joint liability rules that punish end-employers, not only middlemen.
For global-mobility managers, the findings underscore the need for robust due-diligence when sourcing local staffing partners. Multinational companies risk reputational damage and fines under the EU’s forthcoming Corporate Sustainability Due Diligence Directive if they are linked to exploitative labour chains. Experts advise insisting on proof of agency licensing, verifying employment contracts against payslips, and conducting worker-welfare audits.
The Labour Ministry has pledged stepped-up inspections but admits that current staffing allows for only “sporadic” checks. FPEA has launched an online whistle-blowing portal and is pushing for a cap on permissible payroll deductions. Without swift action, observers warn, Cyprus could find itself on NGOs’ watch lists, complicating future efforts to attract specialised foreign talent.
The story, published on 22 February, details how hotels and contracting firms bypass formal procedures to secure cheaper labour, undermining compliant agencies that must adhere to the Migration Code’s strict vetting and minimum-wage criteria. Workers interviewed reported contracts promising €1,400 monthly pay yet receiving little more than €500 after deductions. Many fear retaliation or revocation of their residence permits if they complain.
Amid this opaque recruitment landscape, VisaHQ’s Cyprus portal (https://www.visahq.com/cyprus/) offers employers and foreign workers an easy way to secure legitimate visas and work permits while staying compliant with local regulations—helping them steer clear of unlicensed brokers and avoid costly pitfalls.
The exposé comes as Cyprus prepares to update its National Employment Strategy to address critical skills shortages ahead of the 2027 EU Presidency. Business groups worry that tolerance of illegal brokers could tarnish the island’s reputation as a high-quality tourism and services hub, just as visitor numbers hit record highs. They are lobbying for a digital licensing register, mandatory escrow accounts for recruitment fees and joint liability rules that punish end-employers, not only middlemen.
For global-mobility managers, the findings underscore the need for robust due-diligence when sourcing local staffing partners. Multinational companies risk reputational damage and fines under the EU’s forthcoming Corporate Sustainability Due Diligence Directive if they are linked to exploitative labour chains. Experts advise insisting on proof of agency licensing, verifying employment contracts against payslips, and conducting worker-welfare audits.
The Labour Ministry has pledged stepped-up inspections but admits that current staffing allows for only “sporadic” checks. FPEA has launched an online whistle-blowing portal and is pushing for a cap on permissible payroll deductions. Without swift action, observers warn, Cyprus could find itself on NGOs’ watch lists, complicating future efforts to attract specialised foreign talent.
