Disclosure of trade secrets

The Federal Labor Court ruled in its judgment of October 17, 2024 (Case No. 8 AZR 172/23), published on January 8, 2025, that an injunction against the disclosure of trade secrets only exists if these are protected by appropriate confidentiality measures. An unrestricted and indefinite confidentiality clause in the employment contract is invalid. Employers should define and document protective measures, review contractual clauses, and offer training. An example of an effective confidentiality clause includes a time-limited obligation to maintain confidentiality after the end of the employment relationship, provided that the information continues to be considered trade secrets and is protected.

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