Breach of Confidentiality: Can SNS Posts Lead to Dismissal? Typical Cases and Essential Corporate Prevention Strategies
"Taking customer lists upon leaving," "saving internal know-how on a personal PC," "posting new product information on SNS"—employee breaches of confidentiality pose a significant threat to a company's survival.An employee's duty of confidentiality arises naturally from the duty of loyalty (good faith) under the Labor Contract Act, not just from individual agreements, and persists even after resignation. Crucially, a key factor is whether the leaked information can be protected as a "trade secret" under the Unfair Competition Prevention Act (UCPA). Meeting the UCPA's three requirements (confidentiality management, utility, and non-public domain) allows the company to take powerful legal action, including criminal prosecution leading to a maximum of 7 years imprisonment or a ¥7 million JPY fine. However, if a company neglects "confidentiality management," it will be left legally unprotected when a leak occurs.