Confidential business information can be one of a business’ biggest assets. When employees leave a business, this data can be compromised and potentially lose a business’ competitive advantage.

It is important for employers to take a proactive approach to protecting their confidential information to avoid any breaches of sensitive data.

Here are three preventative tips to help protect your confidential information:

Well-drafted employment contracts
Employment contracts can protect employers from the misuse of confidential information. Including a specific confidential information clause can add another layer of protection. The clause should include specific definitions and examples and outline the process for dealing with confidential information upon termination.

Restrict access
Confidential information should only be available to those on a “need-to-know” basis. Confidential information, whether physical or electronic, should be clearly marked as being confidential and kept in a secure place when not actively in use.

Enforce an IT & Social Media Policy
Employers should implement an IT policy to educate employees of acceptable and unacceptable behaviour online. An IT policy should establish guidelines for the use and misuse of confidential information online, and include disciplinary action for any breaches to the policy. It is also important to establish a social media policy to set out what constitutes as confidential information, what employees are allowed to disclose, use of privacy settings and so forth.