Business Networking
With over 50 million members and an estimated 10% of the world’s professionals already signed up, LinkedIn leads the way in business networking. Like many work facilities, its online networking is open to abuse, so issuing guidance on acceptable usage (rather than imposing fixed rules which soon become out of date) is a sensible way forward for employers.
Practical steps for employers to manage usage include requiring employees to update their profiles immediately on termination of employment and
confirming they have done so in writing when they leave. This avoids employees giving the impression they are still employed by a particular employer after employment ends.
The main area of concern for employers from this online networking in the future lies in protecting client lists. Traditionally protected by restrictive covenants (leading to applications for injunctive relief where such information was used), this is harder to control if the customers’ names are already in the public domain. Employers may become powerless to stop post-termination solicitation of former customers in the absence of detailed policies. A wronged party’s remedy may be purely financial for an unlawful or unauthorised leak.
In the final analysis, employers will need to balance the benefit of acquiring useful contacts against the potential of giving away valuable information.
For more information or for answers to your questions, please contact our employment law specialist, Charles Terry, Associate.
This publication provides general information and does not constitute legal advice. It is believed correct as at 25 March 2010 but is subject to change. To be sure you have the most up to date information, please contact us.
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