Employee’s Confidentiality Obligation

The Employment Contracts Act and Trade Secrets Act sets out provisions regarding an employee’s confidentiality duty. During the duration of the employment relationship, an employee may not use or disclose the trade secrets of the employer to outsiders without the permission of the employer. The prohibition does not extend beyond the duration of the employment relationship. If the employee has obtained confidential information unlawfully, the duty of confidentiality continues even after the expiration of the employment relationship.

The employee’s duty of confidentiality is usually extended beyond the expiration of the employment relationship with a special confidentiality clause in the employment contract. If the scope and duration of the contract is unreasonable, it may not bind the employee.

The agreement may also specify the content of the duty of confidentiality. The conclusion of a confidentiality agreement, its maximum length or amount of the contractual penalty is not regulated by legislation, but unreasonable contractual terms may be adjusted.

It should be noted that by breaching the confidentiality obligation, the employee may also be guilty of trade secret offenses under the Criminal Code.