Skip to main content

Ensuring ex-employees delete confidential information

Share

In a major ruling, the High Court has ordered the deletion of confidential information from devices owned by a business’ former employees who went to work for a rival firm. Harrison Drury’s Employment team examines the implications.

Insurance broker Arthur J Gallagher was granted an interim injunction by the High Court, preventing a former employee using confidential information after moving to a competitor. The court also ordered the confidential information to be erased from electronic devices belonging to the ex-employee and other former members of staff who joined the same rival company.

Why this case is important for employers

The High Court decision illustrates why it is essential for employers to protect confidential information by using expertly drafted contracts of employment.

employment contract legal adviceDuring any period of employment, employers are safeguarded by confidentiality that means employees cannot reveal confidential data and trade secrets obtained as a result of their employment. In addition, employees are not allowed to use the employer’s confidential information for their own purposes.

When employees leave the organisation, the employer can only protect information that qualifies as a trade secret. However, employers can still protect confidential data by using a professionally drafted contract of employment.

Misusing confidential information will result in deletion

The High Court ruling is significant because it shows that if ex-employees knowingly misuse this type of information relating to a former employer, the court is likely to order the deletion of the information.

Just as importantly, the ruling highlights the need for employers to include specific clauses in employment contracts that deal with the deletion of confidential information stored on electronic devices.

It has never been more essential for employers to ensure clauses about confidential information – during and after employment – are carefully drafted in order to fully safeguard their interests.

Our employment lawyers are dedicated to helping businesses protect their interests. For further advice on protecting your business when employees leave, contact the Employment team on 01772 258321.


Questions & Answers

Leave a Comment

Leave a comment

Your email address will not be published. Required fields are marked *


x

Manage your privacy

How we handle your personal data

The General Data Protection Regulation (GDPR) gives you more control over how companies like ours use your personal information and makes it quicker and easier for you to check and update the information we hold about you.

As part of our service to you, we will continue to collect, use, store and share your data safely and securely. This doesn’t require any action on your part.

For more detailed information view our Privacy Hub