Confidentiality and data protection are two vital issues in almost all business, social and employment matters. Specifically, data protection is an emerging topic that public and private organizations need to address carefully and develop the necessary policies in order to protect sensitive information when they perform their daily operations and also when they try to establish new business partnerships.
On the one point of view, these data may concern information about employees, clients, business partners or associates. On the other point of view, this information may concern unique ideas, agreements, and manufacture processes. Therefore, the protection of essential and sensitive information might be beneficial for the economic activity and the development of new ideas. That is to say, the protection of sensitive information may endorse innovation and boost investment. Additionally, the private data protection safeguards citizens’ privacy.
Currently, many employment contracts include confidentiality clauses so that to avert to be revealed valuable business information and manufacture procedures. In this way, companies ensure the protection of essential information and they avoid the divulgation of their commercial secrets to third parties. Specifically, the confidentiality clauses imply that employees shall not disclose any sensitive and confidential information concerning the activities of the company during the validity of their employment contract and after the termination of their contract.
Unlike the confidentiality clauses, in the case of confidentiality agreements, those who sign confidentiality agreements are the directors of Cyprus companies.
The primary purposes of confidentiality agreements are to:
- safeguard sensitive information owned by a private entity;
- define the scope of permitted disclosure;
Among others, a confidentiality agreement protects patents, unique business ideas, and manufacture procedures. It should be stressed that the breach of a confidentiality agreement in Cyprus may result in a considerable financial penalty.
Personal Data Protection:
In Cyprus, all the matters related to the collection, storage, processing and use of personal data are governed by the Processing of Personal Data (Protection of the Individual) Law, that came into force on the 23rd of November 2001. The Law is harmonized with the EU Directive 95/46 on the protection of individuals regarding the processing of personal data.
The scope of the Processing of Personal Data (Protection of the Individual) Law (138 (I)/ 2001) aims at establishing an effective regulatory framework for data controllers. The term data controllers define the individuals or the authority that determines the purposes and the means of data processing. Precisely, personal Data Protection Officer regulation focuses on aspects related to the illegal collection, storage, process and use of personal information about one or more individuals. Regarding the application of the Law, people may submit their complaint to the Office of the Commissioner for Personal Data Protection.