Conflict Of Interests During Job Search

An employee who learns confidential information about another company while searching for a new job is not bound to pass the information to his current employer, it was held in Customer Systems Plc v Ranson, Atherton, Edmond and Offland [2011] EWHC 3304 (QB).

Where an employee learns confidential information about a potential new employer in an interview process, he will be in a position of conflict: he owes a duty of fidelity to his current employer and a duty of confidence to his new employer.  The High Court held that in this particular case the duty of fidelity did not defeat the duty of confidence and accordingly the employee was not obliged to disclose the information to his current employer.  However, the Judge did stress that each case would depend on its particular facts and the terms of the contract between the employer and employee. 

This is good news for employers who want to recruit from competitors.  However, given the Court's view that each case will turn on its facts, caution should still be exercised when disclosing information to potential employees, particularly to senior individuals who are more likely to owe more onerous, fiduciary, duties to their current employer.