Estate agents and their assistants in Cyprus have been thrown into a state of uncertainty following a decision by the Cyprus Real Estate Agents Registration Board to revise the requirements for the renewal of professional licences.
Recently, Christos Nicolaou, head of the Cyprus Real Estate Agents Association (CREAA), sent an official letter to the president and board members of the board, expressing concern over the new changes and asking for clarification. The letter was also sent to the House Committees on Interior and Labour, and the Ministries of Interior and Labour.
Key points of contention included:
- Social Security and Privacy - The Board has required employers to submit social security reports when applying for licence renewal. However, CREAA argues that this is not required by the Agency Workers Act and may violate privacy rights.
- Employment and commission payments - The new requirements make it more difficult for agents who work part-time or are paid on a commission basis.
Nicolaou said that the redistribution of commissions to employees was an established practice and banning it could force new entrants to the industry to work illegally.
For its part, the Cyprus Real Estate Agents Registration Board strongly denied accusations of creating bureaucratic barriers, saying that all eligible applications have been approved. Only those applications that did not meet the legal requirements were rejected. The stricter controls are due to the discovery of fictitious employment contracts.
The Council stressed that only licensed agents are entitled to commission. According to the Estate Agents Act 2010, no unlicensed employee can receive a percentage of transactions. Nicolaou warned that the policy could hurt businesses and urged the council to reconsider its decision.
Andis Apostolou, director of the Cyprus Labour Relations Department, said part-time work was legal as long as the contract was in line with the law. Commissions can be part of the salary if the contract states so. The minimum salary for full-time workers is €900 on recruitment and €1000 after 6 months of employment. If the employer pays less, he must prove that the employee is working part-time.
The debate over the new rules on licence renewal and commission payments continues to divide estate agents, authorities and businesses. While CREAA is calling for the controversial rules to be scrapped, the Agents Registration Board insists they are necessary to combat bogus employment and ensure the legality of transactions.