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The Employment Contracts Act requires an employee to keep the employer’s trade secrets confidential. As a general rule, this obligation under the Employment Contracts Act ceases when the employment relationship ends.
The Criminal Code contains provisions regarding the breach of trade secrets, and the obligation not to exploit trade secrets under the Criminal Code is not tied to the duration of the employment relationship.
Non-disclosure clauses
Employers often wish to reinforce an employee’s duty of confidentiality through specific non-disclosure clauses. Non-disclosure clauses and separate non-disclosure agreements are, in fact, very common in employment contracts.
Confidentiality agreements extend the prohibition on disclosing trade secrets to cover the period following the termination of employment for a specified period or indefinitely. As a general rule, confidentiality clauses are valid, but their validity and reasonableness are always assessed on a case-by-case basis.
