Closing Pandora’s Box – employment contracts key to keeping a lid on commercial secrets

EMPLOYERS worried about losing commercially-sensitive information when employees move on are being told to tighten up employment contracts if they want to protect themselves and have the courts on their side.

The outcome of a recent case brought by Churchill Retirement Living Limited (Churchill Retirement Living Limited v Luard and others [2012 EWHC 1479]) has shown how important it is to specify exactly what actions are prohibited to a former employee if companies want to protect their confidential and commercially-sensitive information.

Says employment law specialist, Kate Wyatt, of Miller Hendry:

“This case shows how important it is to include specifics in contracts where employees have access to confidential or commercially sensitive information. The contract should specifically prohibit actions such as copying and removing this information.

“In certain cases the contract should also prohibit any contact with clients or other connections of the employer for a specified period after the employment has come to an end.”

She added:

“If it’s really clear that an action is in breach of contract, then it’s much more likely the court will grant orders that should prevent the breach of confidence happening and allow businesses to keep their information safely under lock and key.”

Contact: Tricia Fox
Phone: 441738658187
Email: t.fox@volpa.co.uk
Website: http://www.volpa.co.uk