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UAE

Ask the Law

Ask the law: Employee discloses company secrets to competitors

Employee admits act after owner lodges complaint with police



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Question:

I am a company owner. A month ago, I discovered that an employee had disclosed information to competing companies. This act caused me great loss, and therefore I filed a complaint with the police, in which the employee admitted what he had done.

My question is: What other procedures need to be taken against this employee? How can I force him to compensate me for the damages I suffered? Please advise.

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Answer:

To answer such question, I would advise the questioner that:

Disclosing confidential information on the occasion of work is a criminal act according to UAE Penal Code no. 31 of 2021 which states that the offender (“Shall be sentenced to detention for a minimum period of one year and to a minimum fine of twenty thousand dirham or one of these two penalties whoever by virtue of his profession, craft, position or art is entrusted with a secret and divulge it in cases other than those allowed by law or if used for his own personal interest or for the interest of another person, unless authorised by the confiding person to disclose or use it.”)

The employer may terminate the worker according to Article 44 of the labour law without notice if the worker disclosed one work secret related to industrial or intellectual property, which resulted in losses to the employer, missed opportunity or achieving a personal benefit for the worker.

You may file a civil case against him for temporary compensation accompanied with the criminal case.

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When the criminal court issued a judgement against him, you have to file a civil case for compensation and you are entitled to request material and moral compensation provided that the elements of the prejudice and the losses you had suffered, must be proved by you. This case is recommended to be filed after you get the judgement from the criminal court.

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