Tips for Protecting Confidential Information When an Employee Leaves

When an employee leaves, whether it is voluntary or not, it can present a threat to your company’s confidential information. This is especially true if the employee continues to work in the same industry for one of your competitors. Thus, it is essential that employers create a strategy for reducing this risk to their proprietary information. Below are a few tips for your consideration:

• Exit interviews . On the employee’s last day in your employ, schedule a meeting with him or her to discuss the practical and legal issues that accompany their departure. If the employee has executed a confidentiality agreement or non-compete contract , you should address their contractual obligations under them. If no such agreement was signed, you should still remind the departing employee that he or she should not disclose your company’s trade secrets and request that he or she sign an acknowledgement of any ongoing obligations as well as a confirmation that all company documents have been returned. You may also want to use this opportunity to ask where the employee will be working next. If the employee balks at discussing this with you, it is a red flag and you should consider consulting with your attorney.
• Collect company devices . During the exit interview or at least before the employee leaves the building, you should confirm that you have collected all computers, cell phones, jump drives, tablets or other devices that the company provided to the employee. You should also have the employee confirm in writing that all devices have been returned.
• Terminate electronic access . The departing employee’s email and access to any digital data of the company should be cut-off immediately upon (if not before) his or her departure.
• Check for improper downloads . Many employees begin planning for their departure weeks before they actually leave. Thus, your IT department should investigate whether any information was improperly downloaded and/or whether the employee emailed data to a personal account. If so, you should confer with a lawyer to talk about your available options.
• Notify appropriate parties . If the departing employee had contact with your clients, customers, vendors or other important third-parties, you should notify them that the employee is no longer working for you. Establish a new contact person and if this person is a new hire, make sure he or she has signed a non-compete and confidentiality agreement!