Employment Agreement With Confidentiality Clause
A useful tactic for employers is to write to outgoing workers reminding them of their obligations after dismissal, from the outset and before an infringement occurs, to make it clear that infringements are taken very seriously and dealt with accordingly. Employers can also make it clear to outgoing workers that it is important to draw their new employer`s attention to the restrictions in place so that they do not incite their new employee to violate them. This article discusses the latest developments in this area, including the procedures for implementing obligations arising from a dismissal signed by a former Seven Network employee and the recent campaign for banks to waive their rights to impose confidentiality agreements against former employees who may wish to make a statement to the Royal Commission of Misconduct in the Banking. Superannuation and Finance Services Industry (the “Banking Royal Commission”). In order for gardening leave to be applied, an explicit clause must be included in the worker`s employment contract. Otherwise, a worker`s leave in the garden could equate a negative violation of the right to work and invalidate restrictive agreements in the same way as in the example of the pilonic clause above. With regard to any restriction, it is worth considering the scope of the clause in order to protect the business interests of the company with respect to the specific employee they are trying to limit. The extent, geographical scope and duration of the restriction must be taken into account for what the enterprise can legitimately protect; narrower and more limited, the better in terms of opposability. For example, with respect to limiting future relationships with clients, this should normally be limited to clients with whom the person has dealt for a period of time (e.g. 12 months) prior to termination of employment.
1. The employee understands that confidential information and proprietary data are business secrets of the employer and must always take appropriate measures to protect the confidentiality of such information. The duration of the restriction will often be an important reflection in the development of these alliances.