Misusing Confidential Information After Termination: Ontario Court Issues Rare and Serious Remedies

Hands on a laptop with digital security icons, representing misuse of confidential information after termination.

The Ontario Superior Court of Justice recently confirmed that employees have ongoing obligations after their employment ends when it comes to confidentiality and post-employment conduct. In B. v. M. (2025 ONSC 2365), the Court granted powerful remedies after finding that a former employee engaged in a prolonged pattern of harassment and misuse of confidential information following termination.

This decision is a clear reminder that former employees can face serious legal and financial consequences if they retaliate against an employer or mishandle confidential records after leaving their job.

Background: Misuse of Confidential Information and Harassment

The employee had worked in a senior role for the employer for approximately two and a half years. After termination, the employee’s conduct escalated significantly. According to the Court, the employee:

  • Repeatedly contacted the manager through calls, emails, and texts, even after being asked to stop
  • Downloaded a full computer drive after termination, including confidential business and client information
  • Sent anonymous and harmful emails to major clients of the employer
  • Posted hundreds of negative online reviews, forcing the employer to shut down its business page

The Court found these actions to be deliberate and harmful, creating a serious risk to the employer’s business and relationships.

The Employee’s Defence Rejected

The employee argued that the conduct amounted to whistleblowing and that the requested court orders would violate Charter rights.

The Court rejected this position, finding the behaviour was retaliatory rather than protective of the public interest. The timing, tone, and nature of the communications supported the conclusion that the conduct was intended to cause harm, not expose wrongdoing.

Court’s Decision: Strong Remedies Based on Serious Risk

Given the severity of the situation, the Court granted significant interlocutory remedies, including:

Interlocutory Injunction

The employee was ordered to stop all further harassment and return or delete all confidential information.

Anton Piller Order

The Court also granted a rare civil search-and-seizure order requiring the employee to surrender devices for inspection. This remedy is reserved for exceptional cases. The Court found a real risk that evidence would be destroyed if immediate action was not taken.

Costs Award

The employee was ordered to pay over $34,000 in costs due to what the Court described as an ongoing campaign of harassment.

These remedies are uncommon and reserved for the most serious cases of misconduct.

What This Means for Employees

This decision is an important reminder of the obligations that continue after employment ends:

Your confidentiality obligations continue after termination

Employees cannot copy, download, keep, or use confidential information after employment ends — even if the information was accessible during employment.

Post-employment retaliation can carry severe consequences

Harassing former colleagues, interfering with client relationships, or attempting to damage an employer’s reputation can lead to injunctions, significant legal costs, and other serious court remedies.

“Whistleblower” arguments will not protect retaliatory conduct

If a court finds the behaviour is retaliatory or intended to cause harm, a whistleblowing defence is unlikely to succeed.

Considering Your Rights After Termination?

If you have questions about your post-employment obligations, or if you believe you are being unfairly accused of misconduct, speaking with an employment lawyer can help protect your rights.

At Monkhouse Law Employment Lawyers, your first step is a free 30-minute phone consultation for a chance to share your situation and understand your options before making any decisions.