Economou & Co LLC has published a new guide examining the principal categories of clauses that govern post-employment obligations in Cyprus.

The guide addresses non-compete provisions, non-solicitation restrictions, post-termination confidentiality obligations, and payment in lieu of notice and garden leave arrangements. For each category, it considers the applicable legal framework and its implications for both employers and employees.

Among the issues examined is the enforceability of non-compete and non-solicitation clauses under the Contracts Law (Cap. 149), where the general statutory presumption against restraint of trade creates significant uncertainty that has yet to be resolved by appellate authority. The guide also addresses post-termination confidentiality obligations, which occupy a more favourable legal position, and analyses the extent to which contractual and statutory protections, including the Trade Secrets Law 164(I)/2020 and springboard injunctive relief, operate alongside them.

On payment in lieu of notice and garden leave, the guide identifies a distinctive feature of Cypriot law: the deeming provision in Law 24/1967, which provides that an employee is deemed to remain employed for certain statutory purposes even after a PILON payment has been made. This raises questions about whether the conceptual distinction between PILON and garden leave that exists in other common law jurisdictions is as clear-cut under Cypriot law.

The guide forms part of the firm's broader series of employment law publications.

View the guide here: Post-Employment Obligations and Restrictive Covenants in Cyprus: A Practical Guide