Post-Employment Obligations And Restrictive Covenants In Cyprus: A Practical Guide

1. Introduction

This guide examines the principal categories of clauses that govern post-employment obligations in Cyprus: non-compete provisions, non-solicitation restrictions, post-termination confidentiality obligations, and payment in lieu of notice and garden leave arrangements.

2. Non-Compete Clauses

Non-compete clauses restrict a departing employee from engaging in work that competes with their former employer. They are among the most commonly used and legally contested post-employment provisions in Cypriot employment contracts.

Under Section 27(1) of the Contracts Law (Cap. 149), any agreement restricting a person's ability to carry on a lawful profession, trade or business is, in principle, void. Cypriot courts have shown some willingness to uphold narrowly drafted post-employment restrictions, particularly where they do not prevent an individual from working altogether but instead focus on preventing specific conduct, such as interfering with existing client