News Local Bank guarantee requirement for foreign workers 'to be scrapped'

Bank guarantee requirement for foreign workers ‘to be scrapped’

The Interior Ministry wants to  abolish rules requiring employers of third country nationals to take out a  bank guarantee,  Phileleftheros reported on Wednesday.

It said the move will come as a relief to employers who have up to €850 per employee blocked in their bank accounts to cover potential repatriation costs.

Interior Minister Constantinos Petrides told the newspaper that an amendment to the law abolishing the requirement for a bank guarantee has been sent to the legal service of the Republic for review.

Petrides noted that among those required to obtain bank guarantees were the elderly and the disabled whose only income is their pension and who have difficulty raising the funds.

The minister said he had discussed the issue with representatives of associations for the elderly who agreed the guarantee should be scrapped.

This is a bad practice which renders hostage thousands of people, many of them vulnerable. A number are required to take out bank guarantees two or three times, he added.

His proposal is to scrap the requirement for guarantees and release existing ones.

Last year, guarantees of €74,000 were released. The immigration department, which has reserves of  €4m from bank guarantees, last year cashed in €300,000.

Phileleftheros said that employers will still be liable for repatriation costs of their employees and should they be unable to do so, there is an EU fund to cover such repatriations.

Current procedures to release a bank guarantee are bureaucratic and may take eight to 10 months.

 

 

Top Stories

Bill Withers, soulful singer of ‘Ain’t No Sunshine,’ dead at 81

Bill Withers, a soulful singer best known for the 1970s hits "Lean on Me," "Lovely Day" and "Ain’t No Sunshine," has died at age...

Post Office mobilises Parcel24 service in fight against Covid-19

Cyprus Post is mobilising the 24-hour Parcel24 locker systems to boost efforts to contain the coronavirus by helping the public avoid visiting the Post...

Customer service by Social Insurance Services amid Covid-19 measures

The Social Insurance Services, within the framework of preventive measures to address COVID -19, inform the public that the online application / JCC Smart...

House doubles fine for Covid-19 decree, approves prison measures

The House of Representatives on Friday approved a government bill doubling the out of court fine for violating the stay at home decree from...

One more dies, 40 test positive for coronavirus

One more person has died, a man aged 64 with underlying health conditions, the Health Ministry said on Friday, and another 40 people have...

Taste

Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....