Introduction
A confidentiality clause in employment contracts obliges employees not to share confidential company information, even after the end of employment. This blog discusses the risks employees face if they violate it and when a penalty can be imposed.
Secrecy does not stop at the end of employment
Virtually every employment contract contains a confidentiality provision. Employees are required to keep trade secrets confidential, both during and after employment. In many cases, this obligation also carries a hefty fine if the employee fails to comply.
So the idea that you can freely share sensitive information after leaving employment is false. Even if you no longer work somewhere, you can still be held liable for violating the confidentiality clause.
Case law example
An illustrative example comes from a case before the subdistrict court in Amsterdam. A manager at a logistics real estate company was told that his temporary contract would not be renewed. Shortly thereafter, he transferred as many as 791 documents to his personal Dropbox account. Among these documents were company-sensitive data.
The employer discovered this and summarily dismissed the employee. In the proceedings, the employee argued that many documents were prepared by himself. According to the court, however, that made no difference. The documents had been created by order of the employer and were therefore covered by the duty of confidentiality.
The judge found that mass copying and transferring confidential company documents posed serious risks to the employer. Especially since the company rules clearly stated that sending documents to a private account was not allowed.
No fine of €75,000
Although the summary dismissal was upheld, the employee ultimately did not have to pay a fine of €75,000. This was because it could not be proven that the employee had actually shared the trade secrets with third parties. Merely storing the information for private use was insufficient for the contractual fine to apply.
Yet this case shows that copying or taking company documents, even without further distribution, can lead to severe measures such as dismissal.
Importance for practice
Employers would be wise to include clear confidentiality clauses in employment contracts, with references to company rules stating exactly what is and is not permitted. Employees should be aware of the fact that confidentiality obligations do not automatically end upon departure and that violations can have substantial consequences, both in the form of dismissal and large fines.
Conclusion
The duty of confidentiality does not stop upon leaving employment. Employees risk severe measures such as dismissal and large fines for violation. Clear rules and awareness of confidentiality obligations are essential to avoid legal problems for both employers and employees.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about confidentiality clauses. Please feel free to contact us .
April 2025
