An employer who is aware of an employee’s breach of confidentiality towards it previous employer may be liable to such previous employer

An employee transitioned from one business to another contacting former clients and utilizing confidential business information obtained during his previous role. The new employer was aware of the confidentiality obligations the employee had undertaken toward his former employer and encouraged his move to compete with that employer directly.

The Labor Court held that both the employee and the new employer were ordered to compensate the former employer. When information is sensitive, not publicly known, and not easily replicable, its use may amount to theft of trade secret. An employer who knowingly induces or benefits from an employee's breach of contractual obligations may be liable toward the former employer. Here, the employee used client data, operational methods, and marketing analysis reports that constituted trade secrets, while the new employer, aware of these obligations, profited from the breach. Therefore, both the employee and the new employer were ordered to compensate the former employer.