The Case

A software development manager employed by BlueScope Steel Limited (BSSL) for 12 years was advised on 29 June 2015 that her position would be made redundant and her employment would be terminated.

Before the employee left the premises, she made a copy of her work computer hard drive, and downloaded copies of BSSL’s software, source codes and other confidential information and intellectual property belonging to BSSL.

The employee was thereafter hired by one of BSSL’s competitors, NS BlueScope Limited in Singapore.

BSSL commenced legal action in Australia and Singapore seeking orders to prevent the use and/or destruction of its confidential information.

The Verdict

The Federal Court held that the information BSSL sought to protect was intellectual property and confidential information of a significant financial value, and that there was a risk of financial loss to BSSL if it was not protected.

The Court said it was arguable that the employee, without BSSL’s authority, had taken and used the confidential information, including in her employment with her new employer.

As such, the Court prohibited the employee from using the confidential information.

The Lesson

To reduce the risk of an ex-employee taking and using confidential information, you should:

• ensure employment contracts include a confidential information clause stating what constitutes confidential information and outlining what employees can and cannot do with it;
• take measures to secure confidential information in the workplace; and
• monitor employee use of work email and computers in accordance with your workplace surveillance policy.

If a breach occurs, seek immediate legal advice as court proceedings need to be launched quickly if the confidential information is to be properly protected.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.