Did you know that even after an employment ends, an employee is still legally bound against disclosing confidential information that has been obtained in the course of their employment?
Our employment Lawyers here at JFMLAW, recommend that each employment contract has a well prepared restraint clause in order to prevent the employee from disclosing any commercially sensitive information that may affect your business.
There are many cases that demonstrate the absence of this clause and the impact it had on a business. The case of Del Casale v Artedomus (2007) established that, where no express obligation of confidentiality existed, the employee owed no implied contractual duty to keep the information secret and confidential after their employment ended. There is a risk, which sometimes materialises in rare cases, and therefore, employment contracts should be reviewed.
As an employer, you should undertake all necessary measures required in order to prevent the employee from disclosing any commercially sensitive information.
Relying on the implied duty of good faith and fidelity is no longer a sufficient protection for employers. Therefore, in order to protect your business interests after an employee leaves your company you should make sure that each and every employment contract has a restraint clause.
Here at JFMLAW we can assist you in preparing a restrain clause that will prevent your departing employee from using any commercially sensitive information or simply prevent them from working for your competitor.
For more information regarding restraint clauses and the duty of confidentiality please refer to our Managers Toolkit or alternatively, give us a call on (02) 9331 0266.
John Morrissey has been a practising Sydney solicitor for 30 years, and for the past 20 a sole practitioner and the principal at JFMLAW.
His main focus employment law, advising small to medium-sized firms and their employees of their rights and obligations.
For many years he was a lecturer at UTS to students obtaining Masters in Human Resources Management with a focus on performance management and creating a culture of delivery in workplaces. John has acted for a significant number of employers, not only in developing a performance based culture in the workplace but also solving particular problems that arise relating to unfair dismissal, contract disputes, improper use of intellectual property or other property as well as enforcements of restraints of trade.
John is very happy to speak to any employer who has an issue on a free of charge basis by a phone call. Please feel free to ring John at anytime up to 6pm most days.
Latest posts by John Morrissey (see all)
- Banking Royal Commission Guide – Part 2: Entitlements For Bank Staff Made Redundant - May 6, 2019
- Why Does My Contract Have A Restraint Of Trade Clause? - January 21, 2019
- How to avoid unfair dismissal claims - November 28, 2018