Abolition of Bank Guarantees

On the 6th of December 2019, the Members of the Cyprus Parliament have passed an amendment on the Aliens and Immigration Law, Cap.105 which abolishes the obligation of the Employer to provide a Bank Guarantee pertaining to the granting of a temporary residence permit on the basis of employment of third country nationals.

Instead of a Bank Guarantee, the Employer is required to provide to the Civil Registry & Migration Department a confirmation letter in favor of the third country national by which the Employer will ensure and will be bound to incur any costs for the Employee’s removal/repatriation from the Republic of Cyprus. The said confirmation letter may be provided to the Civil Registry & Migration Department or to any District Unit of the Aliens and Immigration Services by the Employer or his representatives for any third country national who will be employed or is currently employed or was employed by the Employer.

It is highlighted that in the instances where a Bank Guarantee has already been submitted to the Civil Registry and Migration Department, the Bank Guarantee will be refunded upon the provision of the required confirmation letter. The said applies to those who:
  • Possess a valid temporary residence on the basis of employment;
  • Have filed an application for the change of employer;
  • Reside illegally in the Republic of Cyprus;
  • Reside in the Republic of Cyprus under the Asylum seeker status.
As of now the repatriation cost of any third country national residing in Cyprus on the basis of Employment is undertaken by the Employer. In the event where the Employer refuses or omits to incur the removal/repatriation cost of the third country national employee, the Director of the Civil Registry & Migration Department will initiate legal actions against the Employer in order to claim the removal/repatriation costs and if the Employer continues to refuse to compensate the removal/repatriation cost, the Civil Registry & Migration Department will not examine any application subsequently submitted by the Employer in question for the issuance, amendment or renewal of a temporary residence permit on the basis of employment for any other third country national.
Concluding, the said amendment aims to modernize, speed up the procedures and relieve the Employer from the burden of blocking any funds in order to cover the removal/repatriation costs of a third country national employee.
 
 
HOW CAN WE HELP YOU?
 
Should you wish to obtain legal advice or additional information in relation to abolition of the requirement of bank guarantee, do not hesitate to contact our legal department which is at your disposal to assist you in this respect.
 
CONTACT DETAILS:
 
Pantelitsa Michael
Advocate-Legal Consultant
pantelitsa@bybloserve.com
Bybloserve Management Ltd
Patron 10, CY-6051, Larnaca, Cyprus
Tel: +357 24812575, Fax: + 357 24812583
 
The information contained in this document is for general information purposes only and is not intended to address the circumstance of any particular person. The information is provided by BYBLOSERVE MANAGEMENT LIMITED in association with I. FRANGOS & ASSOCIATES LLC and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability and suitability of this information, which in any case should not be used as to substitute consultation by professional advisors.
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