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 JFM Law, 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 can have 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 JFM Law we can assist you in preparing a restraint clause that will prevent your departing employee from using any commercially sensitive information or simply prevent them from working for your competitor. Contact JFM Law on 1300 882 386 for a no obligation chat. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au.
The information contained in this post is current at the date of publishing – 03 June 2024.