Confidentiality clauses
There is an implied confidentiality clause which remains post-termination.
During employment, the implied duty of good faith mentioned above encompasses a wide duty of confidentiality which prohibits the disclosure of information classed as a trade secret or information which the employer regards as confidential.
Once employment has ended, the employee is under a narrower duty not to disclose information that is a trade secret or is so confidential that it requires the same protection as a trade secret. This usually includes technical information regarding manufacturing processes and high level strategic business plans.
It is still usually advisable for an employer to include an express confidentiality clause in its employees’ contracts.
Restrictive covenants
Employers may put further restrictions on their employees by the use of express terms, known as restrictive covenants. The courts look unfavourably on these terms, and in order to be enforceable they must protect a legitimate interest of the business and go no further than is reasonably necessary to protect that interest. Legitimate interests commonly include an employer’s trade connections and trade secrets.