For many Australian businesses, LinkedIn has become an integral part of making connections and doing business, especially when it comes to finding and building relationships with clients and new leads. But as our reliance on this platform increases, so does the need for clear policies about who owns these connections and how they are used. Some employers are finding — all to late — the dangers of not having clear expectations spelled out in the employment contract and policy documents could mean former employees leave with valuable customer information.
There have been two cases in the UK that illustrate exactly what is at stake for companies when employees leave. In both Hays Recruitment (Holdings) Ltd & Anor v Ions & Anor [2008] EWHC 745 and Whitmar Publications Limited v Gamage & Ors [2013 EWHC 1881, former employees used the connections gained on behalf of their employer in an attempt to take clients with them when or after they left. And in both cases, the courts found that this information was indeed confidential company information, and demanded that the employees turn over the connections as well as any correspondence made with them.
So how can you protect your company interests in the digital era? Most companies understand the importance of including non-compete and non-disclosure clauses in the employment contract. But now, it is also necessary to spell out exactly who owns connections made on LinkedIn and other social media channels, as well as what happens to these connections once employment ends. It is important to note that LinkedIn itself will not intervene in these disputes because it considers the user (and not the employer) to be the relevant account holder so that other options need to be considered such as having the employer pay for the employees’ premium LinkedIn account(s) to prove ownership. This makes your company, not the employee, the owner of the account as well as the owner of the connections made through it.
Unfortunately having these policies in place don’t always stop abuses from happening. All too often, former employees continue to mine these LinkedIn connections to the detriment of their past employer. If you find yourself in this situation, litigation may be necessary. Yet this is still somewhat uncharted territory and it is unclear how this will play out in New South Wales. That’s where Litigant may be able help. With a focus on commercial litigation, our principal has been guiding companies through breach of contract cases for over 10 years. To get more information regarding your specific situation, simply call our litigation lawyers at +61 2 9199 4530 to book a consultation.