Cyprus is not a “slave market”, Labour Minister Marinos Mousiouttas said on Wednesday as he pledged inspections into allegations that hotels are using temporary agency workers to bypass employment protections.

Mousiouttas said the ministry in cooperation with the labour department would investigate complaints raised by both trade unions, Sek and Peo, over the supply of third country workers to hotels through agencies and other intermediaries.

“The effort of the ministry and the competent officers is, through checks, to see if such phenomena exist and, where they exist, to follow the path of justice,” he said.

The minister said workers’ rights must be respected regardless of nationality, race, religion, colour or gender and said the ministry would seek to “reduce, if not eliminate” such practices.

His comments follow warnings from the two unions that hotels are increasingly obtaining workers through agencies instead of employing them directly under the terms of collective agreements governing the sector.

SEK secretary general Michalis Frangou said some hotels were obtaining third country workers from agencies that had originally recruited them for other sectors.

He said the practice created “two-speed employees” and could allow employers to avoid collective agreements and other employment obligations.

Frangou said the practice affected a wide range of hotel jobs, including housekeeping, cleaning, kitchens, bars and restaurants.

PEO hotel workers’ secretary general Neophytos Timinis said workers supplied through intermediaries could be paid by the hour without receiving benefits or conditions provided for under collective agreements.

“These employees are paid by the hour, without any application of the collective agreement and without benefits,” he said.

The unions have called for targeted inspections of both companies supplying workers and the hotels using them, with sanctions where breaches are found.

Timinis said the practice was not confined to isolated cases and had been reported in numerous establishments, particularly Ayia Napa and Paphos.

The unions have warned that they could consider further action in September if they do not see measures being taken.

The unions have also raised concerns over similar arrangements in construction and catering.

Mousiouttas said his ministry had received the unions’ letter several days earlier and was awaiting information from the labour department before deciding on further action.

He also called on anyone with information about specific cases to submit details to the authorities.

The allegations follow concerns over the treatment of foreign workers in Cyprus’ hospitality sector, where foreign nationals account for almost 40 per cent of the workforce.

A conference on human trafficking in the sector earlier this year heard warnings that hospitality businesses can be vulnerable to labour exploitation, particularly where workers are dependent on employers or intermediaries for their employment and residence status.

The Labour Ministry has said around 8,000 inspections are carried out each year and that complaints about exploitation and illegal employment can be submitted anonymously.

Mousiouttas said the authorities would investigate the allegations and take action where violations were established.

The hoteliers’ association (Pasyxe) chief Christos Angelides denied that the association had received any complaints of illegal employment involving workers at hotels that are union members.

He called on anyone with evidence to come forth and bring it to the attention of the competent authorities.

Angelides said licensed agencies were permitted under current legislation to supply workers from third countries, provided the legal framework was fully respected and workers’ rights protected.