Court case highlights the importance of robust offboarding and device policies to prevent data breaches
When an employee with access to sensitive company data leaves, the risks of data loss or misuse can escalate—especially if that employee is located outside Canada.
A recent U.S. court decision involving Pliteq, Inc., a Canadian company, and a former executive based in Dubai, underscores the challenges and best practices for HR professionals managing offboarding in a global context.
The Pliteq v. Mostafa case, heard in a District Court in Florida, revolved around allegations of trade secret misappropriation and breach of confidentiality following the executive’s termination.
The court ultimately denied Pliteq’s request for a preliminary injunction, in part because the company could not demonstrate imminent, irreparable harm, and because enforcement across borders is inherently complex.
Jenson Leung, employment lawyer at KSW Lawyers in Vancouver, explains the complications involved in enforcing data breach compensation from employees in other jurisdictions.
“The company would need to retain a lawyer in that other country to take steps to enforce on the judgment that they've received in Canada,” he explains.
“Basically, it adds to the cost and complexity of the case, and it also makes recovery a bigger question mark, as opposed to if they're dealing with a Canadian employee that, for example, has a house here in Canada.”
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