Confidentiality — Ontario Employment Law
Related Keywords
About Confidentiality
In Ontario employment law, the duty of confidentiality is a fundamental obligation that requires an employee to protect their employer's sensitive information. This duty isn't just for spies or high-tech workers; it applies to nearly every employee in some form. It prevents you from disclosing or misusing private business information, both during your employment and after you leave. This obligation can arise in two ways: through an express clause in your employment contract or as an implied duty under common law. An express clause will specifically define what the company considers confidential and outline the consequences of a breach. However, even without a written contract, every employee has a basic, implied duty not to harm their employer by sharing confidential information like client lists, financial records, secret formulas, or strategic business plans. It's crucial to distinguish between an employer's confidential information and the general skills and knowledge you acquire on the job. The law allows you to take your skills, experience, and general industry knowledge to your next role. What you cannot take is proprietary information that belongs exclusively to your former employer. For senior employees, managers, or those in a position of special trust (known as 'fiduciaries'), this duty of confidentiality is much stricter. These individuals have a higher obligation to act in the company's best interests, which includes a more rigorous duty to protect its secrets. A breach of confidentiality can have serious consequences, including a lawsuit for damages or an injunction to stop you from using the information. Because the line between general skill and confidential information can be blurry, understanding your specific obligations is a complex, fact-dependent exercise, often requiring a careful review of your role and any agreements you signed.
Frequently Asked Questions
What is considered 'confidential information' in an Ontario workplace?
Confidential information typically includes non-public data that gives a business a competitive edge. This can include customer lists, pricing structures, financial data, marketing strategies, software code, or manufacturing processes. Information that is already public knowledge is generally not considered confidential.
Do I still have a duty of confidentiality if I never signed an employment contract?
Yes. Under Ontario's common law, all employees have an implied duty of good faith and fidelity to their employer, which includes an obligation to not disclose or misuse confidential information. This duty exists even without a written agreement.
How long does my duty of confidentiality last after I leave my job?
Your duty to protect your former employer's confidential information and trade secrets lasts indefinitely, even long after your employment has ended. This common law obligation continues forever unless the information becomes publicly known through other means.
How is a confidentiality clause different from a non-solicitation clause?
A confidentiality clause prevents you from disclosing protected information. A non-solicitation clause prevents you from actively pursuing your former employer's clients or employees for a specific period. While related, they restrict different activities.
What is the time limit for an employer to sue me for breach of confidentiality?
In Ontario, the general limitation period for a civil claim is two years from the date the employer discovered (or ought to have discovered) the breach, as set out in the Limitations Act, 2002. However, they may act much faster to seek an injunction to stop the misuse of information.
Can I get in trouble for taking a client list I memorized?
Yes. The protection applies to the information itself, not the format it's in. Whether the client list is on a piece of paper, a USB drive, or simply in your memory, using it for a competitor's benefit would likely be considered a breach of your duty of confidentiality.
When should I consult an employment lawyer about confidentiality?
You should seek legal advice if you are leaving a senior role, plan to start a competing business, or have been accused by your employer of taking or misusing company information. A lawyer can help clarify your specific obligations and potential risks.
Common Scenarios
- A marketing manager leaves their job and, in an interview with a direct competitor, shares details of their former employer's unreleased Q4 marketing campaign.
- Upon resigning, a financial analyst emails a spreadsheet containing detailed client investment portfolios to their personal email address to use in their new role.
- A chef at a well-known restaurant quits to open their own place and uses the exact, secret recipe for the former restaurant's signature dish.
- A former sales executive is sued after their new employer successfully lands a major client by undercutting a bid, using pricing information the executive brought with them.
- An administrative assistant is terminated and later discusses sensitive details about the company's pending merger, which they had access to, with a friend in the same industry.
What You Should Know
- Never forward company documents, client lists, or data to your personal email or copy them to a personal device, especially when you are planning to leave your job.
- Before you resign, carefully re-read your employment agreement to identify any specific confidentiality clauses that outline what your employer considers protected information.
- If you are accused of a breach, do not destroy any data. Instead, document the accusation and seek legal advice immediately to understand your position.
- Be aware that your duty of confidentiality continues even after your employment ends, and a breach can lead to legal action for damages or an injunction against you.
- If you are unsure whether information is confidential or general knowledge, it is safest to err on the side of caution and not disclose it outside the company.
Featured Cases
Ballance It Inc. v. L.
2026 ONSC 5148 (CanLII) · 2026-09-10Employment Contract: Interlocutory Injunction Refused
This interlocutory proceeding addressed whether the employer established a strong prima facie case to restrain a former employee from breaching non-solicitation and confidentiality obligations under their employment agreement. The court assessed the reasonableness of restrictive covenants and the handling of confidential information on personal devices, ultimately refusing the injunction as the prima facie case was not met.
Green Life Inc. et al. v. 24K Maple Supply Inc. et al.
2025 ONSC 7356 (CanLII) · 2025-12-05Injunction Refused: Expired Non-Compete & Confidentiality
This interlocutory motion concerned an application for an injunction to enforce confidentiality obligations and restrict competition, where the underlying non-competition clauses had expired. The court applied the RJR-MacDonald test, finding no serious question to be tried regarding the confidentiality of pricing and stock information which was largely public, and determined that damages were an adequate remedy. The motion was dismissed as the balance of convenience favoured the respondents and the relief sought would effectively shut down the competing business.
One World Logistics Group Corp. v. S.
2025 ONSC 3518 (CanLII) · 2025-06-11Interim Relief: Non-Compete vs Confidentiality in Employment
This is an interlocutory proceeding concerning interim injunctive relief to enforce restrictive covenants in an employment agreement. The court declined to grant interim relief for the non-competition clause due to its broad scope and questionable enforceability, but granted interim orders enforcing confidentiality obligations and requiring the provision of login codes.
Coscarella Dentistry Professional Corporation v. H.
2025 ONCA 118 (CanLII) · 2025-02-18Dentist Confidentiality & Solicitation Appeal
An appeal by a dental corporation against a trial judge's decision that a departing associate dentist did not breach confidentiality, fiduciary duties, or engage in improper solicitation of patients. The Court of Appeal reviewed whether the dentist's access to patient records to notify them of the practice relocation constituted a breach of professional obligations or contractual good faith.
M.M. v. L.C.
2025 ONSC 741 (CanLII) · 2025-02-04HRTO Settlement Enforcement: Confidentiality Breach Upheld
This is a judicial review of an HRTO decision enforcing a settlement agreement in a human rights complaint. The Divisional Court upheld the Tribunal's findings that the respondent breached confidentiality and non-disparagement clauses by making statements on LinkedIn, and upheld the enforcement of a repayment order for liquidated damages.
A. et al v. A.
2025 ONSC 770 (CanLII) · 2025-02-03Judicial Review of Arbitration Award in Employment Dispute
This is a judicial review application concerning the enforcement of an arbitral award related to disparagement and confidentiality provisions. The applicants sought to set aside the award under section 46 of the Arbitration Act, 1991, alleging breaches of natural justice, and sought to introduce fresh forensic accounting evidence.
Boaden Catering Limited v Earl Haig Community Day Care
2024 ONSC 5349 (CanLII) · 2024-09-26An employment law case involving claims of breach of confidentiality, conversion, and unlawful means.
T. v. H.
2024 ONSC 3666 (CanLII) · 2024-06-25Employee Confidentiality and Liability Duties
This case addresses the duties and liability of an employee, specifically concerning confidentiality obligations within an employment relationship.
EF Institute for Cultural Exchange Limited v. WorldStrides Canada, Inc.
2023 ONCA 566 (CanLII) · 2023-08-29Employment Contract: Restrictive Covenants Appeal
This is an appeal from a summary judgment ruling concerning alleged breaches of restrictive covenants and confidentiality clauses by a former employee. The Court of Appeal for Ontario reviewed whether the motion judge erred in finding no breach of the employment agreement and in requiring proof of damages for alleged assistance provided to a competitor. The appeal addressed the onus of proof and the appropriateness of summary judgment in the context of employment contract enforcement.
O. v. O.
2023 ONCA 520 (CanLII) · 2023-08-02O. v. O.: Contempt and Striking Pleadings
This is an appeal from a motion judge's decision to strike pleadings and dismiss a wrongful dismissal action due to the appellant's breach of the deemed undertaking rule and civil contempt. The appellant had disclosed confidential discovery materials to the media and violated court orders regarding a union contact list. The Court of Appeal reduced the sentence for contempt but upheld the dismissal of the underlying employment claim.
Salina Chagpar Professional Corporation v J.
2023 ONSC 3153 (CanLII) · 2023-05-26Enforceability of Non-Solicitation Clauses in Employment
This is an interlocutory motion for injunctive relief regarding the enforceability of non-solicitation and confidentiality clauses in an employment contract. The plaintiff sought to prevent a former employee from soliciting clients and disclosing confidential information pending trial. The court granted the injunction, upholding the restrictive covenants as enforceable and finding that the plaintiff demonstrated irreparable harm.
EF Institute for Cultural Exchange v. WorldStrides Canada Inc.
2022 ONSC 4920 (CanLII) · 2022-11-10Employment Contract: Confidentiality & Fiduciary Duty Summary Judgment
This was a summary judgment motion where the defendant sought dismissal of the plaintiff's action alleging breach of confidentiality and fiduciary duty. The court granted summary judgment, finding no genuine issue for trial as the evidence did not support an actionable breach of confidentiality clauses or fiduciary duties owed by the former employee.
L. v. Proex Inc.
2022 ONSC 319 (CanLII) · 2022-01-13Solicitor-Client Privilege: Company Email Use
This case addresses whether emails exchanged between an employee and his lawyer using a company email account are protected by solicitor-client privilege. The court found that the plaintiff had a reasonable expectation of confidentiality despite using the company account for over two decades and determined that no waiver of privilege occurred.
B A Folding Cartons v. S.
2021 ONSC 2566 (CanLII) · 2021-04-06Interim Injunction: Breach of Confidentiality & Loyalty
An employment law case concerning an interim injunction sought to prevent a former employee or current employee from breaching confidentiality and the duty of loyalty to the employer.
Camino Modular Systems Inc. v. K.
2019 ONSC 7437 (CanLII) · 2019-12-16Enforceability of Restrictive Covenants in Employment
This is an interlocutory proceeding concerning the enforceability of restrictive covenants in an employment agreement. The court examined whether non-competition, non-solicitation, and confidentiality clauses were reasonable and protected proprietary interests, finding them overly broad, vague, or indefinite. Additionally, the court addressed the admissibility of evidence regarding alleged misuse of confidential information and the test for granting an injunction.
Voysus Connection Experts Inc. v. S.
2019 ONSC 6683 (CanLII) · 2019-11-20Confidentiality Injunction & Mareva Order in Employment Dispute
This is an interlocutory proceeding involving former employees who were subject to confidentiality obligations under their employment agreements. The court addressed the employer's application for a Mareva injunction to restrain proceeds from the sale of property and a motion to strike evidence allegedly obtained illegally. The court dismissed the motion to strike the evidence and refused to continue the Mareva order due to insufficient proof of asset dissipation, but granted an injunction prohibiting the former employees from using or disclosing confidential information.
C. v. CEO Global Network Inc.
2019 ONSC 3589 (CanLII) · 2019-06-10Consulting Agreement: Non-Compete Void, Damages Awarded
This case concerns a dispute over a consulting agreement involving non-competition and confidentiality provisions. The court found the non-competition provision void for unreasonableness and determined that any breach by the plaintiff was immaterial. The defendant failed to establish just cause for termination, resulting in an award of damages to the plaintiff.
Stress-Crete Limited v. H.
2019 ONSC 2773 (CanLII) · 2019-05-06Enforcement of Employment Restrictive Covenants
This is an interlocutory proceeding regarding the enforcement of restrictive covenants in an employment agreement. The court applied the RJR-MacDonald test to determine if injunctive relief was warranted against a former employee who joined a competitor, analyzing the reasonableness of non-solicitation and confidentiality clauses under Shafron v. KRG Insurance Brokers.
B. v. M.
2018 ONSC 3645 (CanLII) · 2018-06-13Non-Compete Enforcement: Injunction Denied
This interlocutory proceeding involved a plaintiff seeking an injunction to enforce non-competition and confidentiality clauses against former employees and their new employer. The court found the non-competition clauses overly broad and unenforceable, determined that the businesses were not competitors, and concluded that no irreparable harm was demonstrated, resulting in the denial of the injunction.
2158124 Ontario Inc. v P.
2017 ONSC 411 (CanLII) · 2017-01-27Enforceability of Non-Solicitation Clauses: Interlocutory Injunction
This interlocutory proceeding addresses whether an injunction should be granted to enforce non-solicitation and confidentiality clauses against a former employee who allegedly solicited clients and used confidential information. The court applied the RJR-MacDonald test, examining whether the plaintiff demonstrated irreparable harm and whether the balance of convenience favored the employer.