For a person to be regarded as an employee the question which needs to be answered is whether the contract is a contract of service or a contract for services. If the person who has been hired to do a specific task works for his own account then this is regarded as a contract of service and no relationship of employer-employee exists. If the contract is for services, an employer-employee relationship exists.
When a relationship of employer-employee is established, the next factor to look at is whether this contract is for a specific duration or for an unlimited duration. If for example, the duration is for a specific number of years or until a specific future event occurs, the contract is for a specific duration. This means that after the contract is completed, the employee has no further rights in terms of dismissal. The same applies for contracts of employment, which even though they are of an unlimited duration, they specify a probationary period. The probationary period must not exceed 2 years and in case the employer decides to dismiss the employee within the probationary period, he can do so at the end of the probationary period.
If the employer breaches the specific duration contract or the probationary period by dismissing the employee earlier than the specified period, he is liable to pay damages to the employee.
If the contract is of unlimited duration, then the termination of employment in Cyprus is governed by the Termination of Employment Law (L. 24/1967). The Termination of Employment Law aims to provide employees with rights when it comes to job security given that usually the employee is in a worse bargaining position than the employer. In this way the Law can be used as a weapon by the employee in cases of unfair dismissal.
When can the employer dismiss the employee:
There are several reasons when the employee can be legally dismissed under the Law. First of all, an employee can be legally dismissed when he has completed the retirement age which currently stands at 65 years. Article 5 of the Law provides several other reasons where the dismissal is not unfair.
 This is unless a specific notice period is provided in the Contract
 See footnote 1