What can employers do to protect their company's interests if they believe an employee is storing confidential information?

Selecta Systems was in discussions with an employee, Mark, as to the terms of his departure from the company after 20 years. Mark had previously requested copies of commercially sensitive information.

The employer used Mark's passwords to access his phone and online accounts, and found some company customer contact information. The employer changed Mark's password, which locked him out of his personal accounts including his emails, WhatsApp and iTunes.

The High Court ruled that Selecta Systems was entitled to access an employee's company mobile phone, as they had a reasonable suspicion that confidential information had been taken. However, the action of changing the employee's passwords was deemed a step too far and Mark was awarded compensation.

What does this mean for Watford employers?

• Employers that have reason to believe that an employee is storing confidential information on company provided devices must assess whether or not investigatory actions such as confiscating and searching the devices are completely necessary.

• Clear company policies should be in place, and employment contracts should deal with the private use of company-provided devices, including the right to monitor and search for company data should the need arise.

• Personnel carrying out checks should be adequately trained IT specialists, to prevent unintended errors that affect the employees' access to personal information occurring as they did in this case.

• If there are no grounds of suspicion warranting an inspection, the employer may not be entitled to carry out such checks.

• Employers need to carefully consider any relevant privacy rights.

• Any interference with an employee's personal accounts should go no further than what is required to ensure the reasonable protection of confidential business information

Michael Delaney is an employment law partner at award-winning law firm VWV, which has offices in Clarendon Road, Watford.