2. What can employers do if a former employee misuses confidential information to set up a rival business?

2. What can employers do if a former employee misuses confidential information to set up a rival business?

If employers suspect that former employees misuse confidential information to set up a rival business, they should investigate whether they would have a cause of action against the former employees. Some information is not “confidential"” in the legal sense even if it is helpful to a rival business.

Some employment contracts may contain non-compete provisions, but their validity or enforceability may be subject to challenge on the grounds of, for example, lack of legitimate business interest, restraints being contrary to the public interest and appropriateness of scope of restraint. The law and practice relating to restrictive covenants is complex and professional advice should be sought if necessary.