Maintaining confidentiality of company information is not only a legal requirement under the Labour Code, but also a cornerstone of trust and security within any organization. A single careless email or an overheard conversation in the wrong place can jeopardize a company’s stability — and, for the employee, result in severe consequences, including fines or even imprisonment. Experts from Smart Solutions HR explain the potential risks of breaching confidentiality and how both employers and employees can prevent information leaks.
One seemingly harmless email…
Imagine an employee accidentally sending a document containing client data to the wrong recipient. Although unintentional, such a mistake can cause significant financial losses for the company — and place the employee in a difficult legal and professional position. It’s a vivid reminder of why confidentiality and vigilance in handling sensitive information are so crucial.
“Every employee is obliged to protect the company’s confidential information. This includes client data, marketing strategies, technological know-how, and financial or organizational details — anything that is not publicly known, holds commercial value, and has been deliberately secured by the employer,” explains Artur Kornatowski, Legal and Administrative Manager at Smart Solutions HR.
“Confidentiality isn’t just about big strategic secrets. It often concerns small details that may seem trivial to an employee but can be extremely valuable to competitors — for example, supplier lists, schedules, or communication practices with clients. Sending an email to the wrong person, discussing projects in public, storing files in private clouds, or taking screenshots on personal devices — all of these can lead to serious consequences.”
Confidentiality and non-compete obligations
Employees must also be aware of another key rule: the non-compete obligation. It applies not only during employment but often also after it ends (if specified in a signed agreement). Its purpose is to protect the company from misuse of knowledge or contacts gained during employment for the benefit of a competitor. Therefore, an employee cannot run their own business in the same field or join a competing company.
Both obligations — confidentiality and non-compete — are clearly defined in Polish labour law (Article 100 §2 point 4 of the Labour Code) and in the Act on Combating Unfair Competition. They are often reiterated in the employment contract or a separate non-disclosure agreement (NDA) signed upon hiring.
…and serious consequences
Breaching confidentiality or violating a non-compete clause is far more than a minor infraction — it can have serious professional, financial, and even criminal consequences.
At the lowest level, disciplinary measures such as warnings or reprimands may apply. More often, however, the penalties are much more severe:
- Financial liability – If an employee causes damage to the company by disclosing confidential information, they may be required to compensate the employer. For unintentional breaches, this can mean paying up to three months’ salary; for deliberate actions, full damages may be sought.
- Disciplinary dismissal – In particularly serious cases, the employer may terminate the contract immediately, without notice.
- Criminal liability – The gravest consequence arises if the disclosure is classified as revealing a company secret. The employee can face a fine, restriction of liberty, or even up to two years in prison.
“Employees must realize that much of the information they handle daily could be confidential. If you’re unsure whether something can be shared, it’s safer to say nothing,” advises Kornatowski.
“Avoid discussing work matters in public spaces such as cafés or public transport. Don’t forward files to personal emails or leave documents on your desk. And never share company details on social media, even privately. Following these simple rules can prevent serious problems.”
A shared responsibility
Protecting confidentiality and respecting non-compete clauses is a team effort — it concerns both employees and employers. Companies seeking to safeguard their data must take a multi-layered approach:
- Drafting proper legal documentation;
- Introducing clear internal policies (e.g., labeling confidential files, using passwords, encryption);
- Conducting training and awareness programs.
The foundation is a well-prepared NDA, signed not only with new hires but also with contractors and business partners. Internal regulations should clearly define what constitutes confidential information and how it must be handled.
“It’s also worth noting that, according to Poland’s Supreme Court, a non-compete agreement — especially one that applies after employment ends — is not part of the employment contract but a separate civil-law agreement,” explains Kornatowski.
“This means that if employees are transferred to another employer (for example, in the case of company restructuring), their employment contracts carry over automatically — but non-compete agreements do not. These must be re-signed.”
Beyond paperwork: building a culture of responsibility
Written policies are not enough — companies must educate and remind employees regularly about the importance of confidentiality. Regular training and open communication reduce the risk of mistakes and strengthen trust within teams.
“A single breach of confidentiality can cost a company millions of zlotys,” warns Kornatowski.
“The financial loss is just one aspect — it can also damage reputation, lead to customer loss, legal costs, and expensive security overhauls. While contracts and systems are vital, they’re not sufficient unless people understand why and how to protect information. The key is fostering a culture of responsibility that shows in everyday behavior.”
Source: CEO.com.pl – “Nie tylko dyscyplinarka. Za złamanie tajemnicy firmy grozi nawet kara więzienia”
