Knowledge test for duty of confidence – what is a sufficient state of mind to make an employer liable for breach of confidence when it receives a client list from a recruited employee? – Employment Blog

Posted June 11th, 2020 in confidentiality, contract of employment, EC law, employment, news by sally

‘In the recent case of Trailfinders v Travel Counsellors & Ors [2020] EWHC 591 (IPEC) the court reiterated that the test was not subjective: the recipient of the client list did not have to know the information was confidential. It was objective: in equity the recipient is under a duty of confidence whenever he ought to know that the information received is fairly and reasonably to be regarded as confidential, irrespective of his actual state of mind. Further, this was now also the statutory position because under Art. 4 (4) of Directive (EU) 2016/943 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition: “The acquisition, use or disclosure of a trade secret shall also be considered unlawful whenever a person, at the time of the acquisition, use or disclosure, knew or ought, under the circumstances, to have known that the trade secret had been obtained directly or indirectly from another person who was using or disclosing the trade secret unlawfully within the meaning of paragraph 3.”’

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Employment Blog, 9th June 2020

Source: employment11kbw.com