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Most businesses in the UK will handle confidential information. As an employer, this means that both you and your staff may have access to sensitive information, and you will expect your employees to treat the confidential information with care and not breach or misuse it. However, you may face a situation involving confidentiality breaches by a staff member, where, for example, they may leak information to your business competitors. Where your staff breach confidential information, you will need to take action. Breach of confidential information, when intentionally done, can be considered gross misconduct and have serious implications for your reputation and financial loss for your business. This article will explore actions to take if an employee leaks confidential information in the UK.
What is Confidential Information?
Confidential information is information in your business that is protected. It is protected either because:
- your employees have been made aware that it is confidential; or
- it is evident to your employees that they should not use it.
You may inform your employees about confidential information through clauses in their employment contracts and employment policies, procedures and rules. You might also have separate confidentiality agreements in place that specifically outline what your business considers to be trade secrets or non-public information.
Confidential information could be, for example:
- employees’ personal information, such as bank details and home addresses; or
- business information, such as customer lists and financial information.
Actions When an Employee Leaks Confidential Information
You should take immediate action if your employee or staff member leaks confidential information. For example, you may need to inform the affected party about the breach, perhaps through a Data Compliance Officer. However, as an employer, you will need to take action in terms of the member of staff.
Below is a guide about what you should do regarding your member of staff who leaks confidential information.
1. Inform Your Staff Member
The first action to take is to inform your staff member that you are aware of their breach. When doing so, you should ask them to give you confirmation that they will no longer misuse the confidential information.
2. Consider Disciplinary Action
When your staff breaches confidentiality, it will likely be a disciplinary matter. However, before you can decide this, you will need to:
- determine if you have made it clear in your employment rules, policies and procedures that your staff cannot breach confidential information and what the consequences may be if they do; and
- promptly investigate the matter. A thorough investigation will require you to gather evidence, interview staff members, and ask for witness statements.
3. Take Formal Disciplinary Action
The outcome of your investigation will determine whether you need to take formal disciplinary action.
You do not need to commence formal action if your employee did not intend to leak confidential information but instead made a mistake. For example, they may have been rushing when sending an email. In this instance, an informal letter may be appropriate, warning them that you will take formal disciplinary action if the behaviour is repeated.
Where your member of staff’s breach of confidential information was intentional, you may decide to take formal disciplinary action. It is best practice to follow your disciplinary and grievance procedures in these circumstances, which should be full and fair. You will need to hold a formal disciplinary meeting, which will lead you to decide what steps to take, including potential termination of employment.
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4. Consider Legal Action
Suppose the employee does not satisfactorily confirm they will stop misusing your confidential information. Alternatively, your employee may have disappeared from work. In that case, you may be able to make a legal claim against them. Your claim could be in the form of a legal injunction (a ban on your employee from using the confidential information) or damages (monetary compensation for loss due to their breach). The court will decide which remedy is suitable for the circumstances.
Key Takeaways
If your staff member leaks confidential information, this is serious regarding their employment with you and the effects on your business. Therefore, you will need to take action when discovering a breach of confidentiality. You should carry out a full investigation to allow you to establish what has happened. Your investigation will help determine future action, such as commencing formal disciplinary action. A breach of confidential information could ultimately result in your termination of the employment of a member of staff or even legal action.
If you need help understanding what actions to take when an employee breaches confidentiality, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A breach of confidential information is where a member of staff shares confidential information without the permission of the person who owns it.
When your staff member leaks confidential information, you will likely need to take formal disciplinary action. However, this will depend predominantly on whether the breach was intentional, and you will need to investigate to establish this. It is best practice to conduct informal procedures first, such as speaking to the employee in question.
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