Maintaining employee confidentiality is essential for fostering trust and ensuring legal compliance in the workplace. But what happens when sensitive information is disclosed without authorization? Can this constitute just cause for termination? A recent case, Steel v. Coast Capital Savings Credit Union, examined this issue and highlighted key factors in determining whether a confidentiality breach warrants dismissal. The ruling considered the nature of the disclosure, the intent behind it, and its impact on both the employee and the organization.
Key Considerations for Employers
Employers must carefully evaluate:
- Was there a clear policy in place? – Employees should be aware of strict confidentiality expectations.
- What was the nature of the disclosure? – Was it accidental, malicious, or done with reckless disregard?
- Did it cause harm to the individual or company? – Consider reputational damage, legal risks, and workplace trust.
- Is dismissal a proportionate response? – A breach does not always justify termination for cause; disciplinary action may be more appropriate.
How Ford Keast LLP Help?
Ford Keast LLP provides employment law and compliance insights, helping businesses navigate confidentiality agreements, legal risks, and potential liabilities.
HR Consulting Services specializes in policy development, HR investigations, and training, ensuring your team understands confidentiality obligations and best practices.
Protect Your Business in 2025
Don’t wait until a confidentiality breach happens—proactively review your policies and employee agreements today. For more information or tailored guidance, don’t hesitate to contact our expert HR Consultant online or by telephone at 519-679-9330 ext. 460 to help support you and your business.
