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Misuse of Confidential Information

As businesses grow they accumulate a bank of confidential information which helps to give them the edge over their competitors.

To perform their jobs, employees have access to this information - the use of which  is usually protected  by the express terms of the employee's contract of employment.  But what happens when employees leaves the  business?  Are trade secrets still safe?

While there should always be a contract in place, an ex-employee cannot use or disclose highly confidential information and trade secrets.  This protection can be increased though the express terms of the employment contract - and with the additional protection of reasonably worded restrictive covenants.

If an employees discloses or uses confidential information for their own benefit or for the benefit of a third party either during their employment or after leaving their job,  the employer will need to act promptly to protect that information from being exploited.  In such cases monetary damages are not usually adequate - businesses may need to consider preventing future misuse of their information though an injunction or an order restraining the former employee from using the information.

At Hollingsworths we have experience in helping employers and employees in relation to the misuse of confidential information, both before and after proceedings start.