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Legislation governing confidentiality in Cyprus
The Cypriot authorities consider confidentiality very important in all business and employment related matters, which is why the most important laws governing finance, business and employment contain special provisions about the protection of sensitive information. The Cypriot Companies Law has been amended so it allows business owners to appoint nominee shareholders and directors for the protection of the beneficial owners, while their identities remain secret. The legislation regarding trusts also contains provisions about the privacy of their settlors and the transactions and activities undertaken. Confidentiality in the case of trusts refers to the absence of registration with the Cypriot Trade Register and financial reporting requirements. Banking confidentiality is governed by a policy that stipulates a bank’s customers and their transactions may not be made public.
Confidentiality clauses in Cypriot employment contracts
Many Cypriot companies have started introducing confidentiality clauses in their workers’ employment contracts in order to prevent sensitive information to be disclosed. Confidentiality clauses are the best way companies can ensure their protection against the divulgation of trade secrets and private business information to be disclosed to third parties.
Even if trade unions have raised the issue that confidentiality clauses may restrict certain employees’ rights, Cypriot courts have decided that companies can use these clauses as long as they clearly define these provisions and respect the legislation with respect to employment contracts.
Our lawyers in Cyprus may provide you with more information about the Employment Law.
Confidentiality agreements in Cyprus
While most companies prefer to include confidentiality clauses in their employees’ work contracts, in the case of directors of Cypriot companies, employers enter into confidentiality agreements. The main functions of confidential agreements are to protect sensitive information, but also to define the scope such information may be disclosed, which is why Cypriot companies pay so much attention when drafting a confidentiality agreement. The breach of such contracts could attract financial penalties in Cyprus.
For complete details about signing a confidentiality agreement, please contact our law firm in Cyprus.