In addition, it is much more likely that by incorporating specific formulations on the type of information protected, employers will be able to indicate precisely what information is important to them, which falls under the confidentiality rules. Any dispute over what is contained or not will be greatly reduced. At present, many employment contracts contain confidentiality clauses in order to prevent valuable business information and manufacturing processes from being disclosed. In this way, companies ensure the protection of essential information and avoid divulging their business secrets to third parties. In particular, confidentiality clauses imply that employees must not disclose sensitive and confidential information about the company`s activities during the validity of their employment contract and after the termination of their contract. For more information on confidentiality clauses and employment contracts, please contact our employment law professionals. While most companies prefer to include confidentiality clauses in their employees` employment contracts, employers enter into confidentiality agreements in the case of directors of Cypriot companies. The main functions of confidential agreements are to protect sensitive information, but also to define the scope of disclosure of such information, which is why Cypriot companies pay so much attention to the development of a confidentiality agreement. Breach of such contracts could result in fines in Cyprus. A confidentiality agreement protects, among other things, patents, unique business ideas and manufacturing processes.
It should be stressed that the violation of a confidentiality agreement in Cyprus can lead to a heavy financial penalty. For more detailed information, see our article “Confidentiality Agreements” or contact our business lawyers directly. The agreement should also set out any specific measures to be taken to protect the subject matter of the contract and list all authorised users of the information. In addition, a clause should be included allowing an aggrieved information disclosure officer to bring an action for an injunction in the event of an infringement. In the event of a breach of the agreement and a breach of confidentiality, a remedy may be granted by way of summary proceedings and damages. The main objectives of confidentiality agreements are as follows: in some cases, the obligation for another party to investigate the disclosure of information derives from the rules in force. The advantage of a specific confidentiality clause is that it can define the information that the employer discloses as confidential and that disciplinary action can be taken if it is violated by individuals. 1. What is a confidentiality clause / confidentiality agreement? In cases where there is no obligation of confidentiality under the law, the parties may enter into a confidentiality agreement to justify such an obligation. . .