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ARTICLE · 14 NOVEMBER 2008

Protecting Your Business From Departing Employees

Sophisticated employers recognize that the potential costs associated with employee attrition extend far beyond resources expended to replace departing employees. Employee departures can also place critical business assets at risk. A departing employee may engage in the unauthorized use or disclosure of confidential information ranging from technological know-how, product roadmaps and marketing strategies to client and supplier lists and data regarding client preferences and feedback.

CanadaEmployment and HR

Sophisticated employers recognize that the potential costs associated with employee attrition extend far beyond resources expended to replace departing employees. Employee departures can also place critical business assets at risk. A departing employee may engage in the unauthorized use or disclosure of confidential information ranging from technological know-how, product roadmaps and marketing strategies to client and supplier lists and data regarding client preferences and feedback. Departing employees may also interfere with the employer's relationships with customers, suppliers, and other employees, using personal connections developed in the course of employment.

[CALLOUT: "Departing employees are free to compete against a former employer ... provided that they abide by their obligation to hold confidential information in confidence and abide by any other contractual or fiduciary duties that survive the termination of employment."]

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