The absence or the lack of confidentiality can have a profound impact on business as well as the relationship employees have with their employer and/or peers. The term “confidentiality” has both casual and legal meanings in business. Confidentiality can also be a subjective term open to interpretation. But let’s put it into perspective.
On a casual level, maintaining confidentiality relates to relationships with co-workers and managers. It requires “zipped lips” as it were, when it comes to information obtained during one’s daily working life. Examples of breaking casual, confidential communications include repeating a co-worker’s opinion of the boss, revealing the fact that a peer is interviewing with another company, forwarding a confidential email from one employee to another, sharing information you overhead others discussing or passing around a document you found that wasn’t intended for others. A general rule of thumb for discussing others and/or other information is not to repeat something if you wouldn’t say it if the person was standing next to you. Such actions show one up as a person of poor credibility and in time, less desirable as an employee or co-worker.
To be clear, an employee would not be breaking confidence of s/he observed or was included in a conversation where another employee spoke of, or planned actions, to undermine the business; or did/did not do something what would impact the work, health and safety of others in the work place.
The legal definition of confidentiality relates to the access one has to information that an employer does not want made public. This can include salaries, employee perks, client lists, trade secrets, sales numbers, customer information, news about pending terminations, reasons for a firing, phone codes or computer passwords. Employees may not divulge this information while working for an employer or following an exit. In some instances, employees are asked to sign a confidentiality agreement requiring non-disclosure of company secrets even after they have left the company. In a highly competitive environment, rivals may offer to hire an employee specifically because they want access to the inner workings of the previous employer. Businesses in such a competitive sphere, usually include a “Non-compete” clause in the employment contract as a safe-guard. In the event, the employment contact lacks a detailed or clear confidentiality of information provision, confidentiality must be taken as implied as sensitive information obtained may be protected under state or commonwealth law.
Legally, information that cannot be shared outside of a business might include customer lists, production processes, recipes, patents, financial information, research, website traffic statistics and computer and building security information. Businesses that collect data on customers cannot share this information with other businesses unless it informs customers in advance, such as when businesses share email lists. And because, privacy laws.
Personnel information is confidential and information in an employee’s file, such as bank and superannuation, salary, health records, disciplinary actions and termination/separation reason cannot and should never be discussed with other employees not party to information. Similarly, most of this information cannot be discussed with potential employers who call for a reference. Employees who disclose inside information that damage the reputation/business of a former employer can be subject to civil action.
Employers are encouraged to review any non-compete or confidentiality agreements in employee contracts to ensure their business is protected.
Employees who have signed such agreements are advised to get a legal opinion on any proprietary information you may have that you might not be able to share with a new employer.
Further reading: The law of confidential information – leave the customer list behind
Please contact Lauren Morrison at Lauren@lmhr.com.au or Mob: 0400 225 499 if you would like to learn more about how LMHR Consulting can assist your business with your HRM requirements.
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