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ARTICLE · 17 FEBRUARY 2015

Protecting your confidential information from ex-employees

Employers should take these steps to limit exposure to arguments over whether or not information is truly confidential.

AustraliaEmployment and HR
Allana Agnew (Formerly With ClarkeKann Lawyers)
Allana Agnew (Formerly With ClarkeKann Lawyers)
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DUTY OF CONFIDENTIALITY

An employee owes a general legal duty of confidentiality to the employer even if they do not have a written employment contract or the contract is silent on the topic. However, it is far better to have a contractual provision to rely on. The general duty only provides protection where the information is truly confidential and is not trivial. If the information becomes part of the employee's "know how" and skill it will not be protected by the general duty of confidentiality.

While confidential information is typically broadly defined in an employment contract, it is also best to specifically include the types of "make or break" information that is applicable to your business. Unless the information is accessible in the public arena, a court is likely to uphold a contractual obligation to maintain confidentiality.

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