Kition Ocean Holdings has released a statement regarding the recent government takeover of the port and marina, expressing concern for the welfare of its employees and calling for clarity on their future. The company states that the government’s termination of their agreement on May 27, 2024, coupled with the absence of a handover period, has caused significant uncertainty for staff.
The company blamed the government for not having a handover period, causing uncertainty for staff. Employees of Larnaca’s port and marina were laid off by Kition Ocean Holdings Ltd on Wednesday evening, following the project’s collapse.
In its statement, the company put the blame on the government. It said: “The Government chose not to have a handover period, that would allow for a smooth transition of the operations. Instead, it showed up with Police escort but without a real plan or direction especially regarding the employees.”
The company added that “this brutal takeover has caused great disturbance among the employees, who are rightly worried about their future.”
Legal Framework and Employee Rights
According to Kition, the situation is clearly governed by the Law Providing for the Preservation and Safeguard of the Rights of Employees on the Transfer of Undertakings, Businesses, or Sections of Business of 2000 (TUPE), which stipulates the automatic transfer of employees, along with their existing rights, in the event of a business takeover.
“This law is there to protect employees from being terminated when there is a transfer of business. This law also applies when the Government takes over according to Cyprus and European court cases… Kition has communicated the transfer to the employees, explaining the TUPE legislation, and that their terms and conditions of employment will remain unchanged as they move to the new employer,” the company said.
Despite assurances from the government that employees will not be victimised, Kition Ocean Holdings seeks reassurance that the TUPE legislation will be adhered to, ensuring the protection of employees’ rights.
“In official statements… the Government is giving assurances that the employees will not be victimized, and a formula will be found for them to continue their employment’. TUPE law mandates that the transfer of employment is automatic and must include all employees, therefore it is not clear to us what formulas are to be found,” the company stated.
Kition noted it also engaged an independent lawyer to advise employees of their rights, demonstrating its commitment to ensuring employees’ rights are fully upheld during this transition.
