How can employers prevent employees misusing confidential information?
It is an implied term of employment that an employee receiving confidential information can neither use it for their own benefit nor pass it on to another person, unless they have permission. This duty continues to apply after employment ends. The employee also has a duty of fidelity, which means that they must not act in any way that would harm the employer.
Rather than relying on these duties alone, the employer can include an express confidentiality clause in the employee's contract of employment to protect the employer's interests. This type of clause can be drafted so that it continues to apply after employment has ended. The clause should identify the types of information that are to be treated as confidential.