
Employment Practice Liability Insurance (EPLI) key to workplace protection
24/03/2025
Cyprus has become the latest European country to ratify the Violence and Harassment Convention, 2019 (No. 190), to make the workplace safe for employees.
The move adds Cyprus to the growing list of countries taking significant steps in the global fight against violence and harassment at work by ratifying the Convention of the International Labor Organization (Convention No. 190).
According to a study by the EU Agency for Fundamental Rights (FRA) between 2020 and 2024, one in three working women residing in the EU has experienced sexual harassment in the workplace, while the number of cases reported to authorities is significantly lower.
Given the increasing complexity of labour laws in the EU, the implementation of EPLI helps protect both companies and employees from legal and financial exposure.
EPLI is a specific insurance policy designed to protect businesses against claims related to employment practices. It covers a range of employment-related issues that can arise in the workplace, including allegations of discrimination, harassment, wrongful termination, retaliation, and violations of employee rights.
When a company procures EPLI, it ensures that the business itself is covered for legal liabilities arising from employment-related claims, not just the individuals (such as executives or directors) as is the case with Directors & Officers (D&O) insurance.
By covering defence costs and potential damages, EPLI helps companies avoid substantial financial setbacks, enabling them to navigate the complex and evolving landscape of employment law with greater confidence and security.
Convention No. 190 is the first international instrument setting out minimum standards on tackling work-related harassment and violence. Together with Recommendation No. 206, it establishes a framework for action to shape a future of work based on dignity and respect.
An ILO statement said: “The ratification of Convention No. 190 by Cyprus marks a significant step in the global fight against violence and harassment in the world of work. By taking this decisive action, Cyprus strongly conveys that everyone has the right to a world of work free from violence and harassment."
The Convention defines violence and harassment as unwanted behaviours, practices, or threats, whether isolated or repeated, that may cause physical, psychological, sexual, or economic harm.
It includes a special reference to gender-based violence and sexual harassment. The protection covers all workers in both the public and private sectors, regardless of their employment relationship or status. It applies not only in the workplace but also to related activities (e.g. Business trips, communications, transportation).
Member states are required to establish measures for prevention, enforcement, and victim support, as well as to adopt laws that:
Explicitly prohibit violence and harassment at work.
Require employers to take relevant preventive measures (e.g. training, risk assessment, information on rights and obligations).
Ensure effective complaint mechanisms, access to courts, dispute resolution procedures, and other sanctions.
Protect whistleblowers and witnesses from potential retaliation.
Guarantee the right of an employee to remove themselves from dangerous situations arising from violence or harassment if they pose a serious risk to their life, health, or safety.
The criterion for unwanted behaviour is subjective, meaning the way it is perceived by the recipient is Ratification of ILO Convention 190 New legal framework against violence and harassment at work is what matters. The perpetrator’s intent is irrelevant, as the absence of intent does not negate the illegal nature of the act or their responsibility.
Under the Convention:
Employers are obliged to protect employees from acts committed by supervisors, managers, or other employees. They must also ensure that harassment ceases and does not recur, as well as address any consequences. If they fail to do so, employers—whether individuals or legal entities—become jointly responsible along with the perpetrator.
Employers must take timely measures to prevent harassment, including introducing a Code of Conduct that defines punishable actions, explains complaint submission procedures, outlines employer obligations, and details the handling of reports and the implementation of the Code’s provisions.
An impacted person may seek legal recourse in court, which may award fair and reasonable compensation, damages for moral or physical harm, or even reinstatement in cases of dismissal, provided the affected person requests it.
Penalties for violations include fines and/or imprisonment of up to three years. If an offence is committed by a legal entity, the CEO is also liable if it is proven that the offence occurred with their consent, involvement, or tolerance.
Not even the most compliant and best prepared businesses are immune from employment practice violation lawsuits, hence the importance of complementing any risk management practices with a comprehensive Employment Practice Liability Insurance Policy. To seek a quotation please contact W Denis:
Eastern Europe
Southern Europe
Christos.Hadjisotiris@wdenis.com
Western Europe &/or elsewhere worldwide