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Work Computer: Be Mindful of Confidential Data Belonging to the Former Employer

Published on : 06/11/2026 06 November Nov 11 2026
Newsletter / Recent Case Law
Newsletter

In a ruling dated September 2, the French Supreme Court (“Cour de Cassation”) adopted a particularly strict stance against a company on the grounds of unfair competition, even though the hired employee was not bound by a non-compete clause (Cass. com., Sept. 2, 2026, No. 25-12.718).

In this case, a sales representative at a wholesale company dealing in industrial equipment resigned to join a competitor. Suspecting the misappropriation of data, the former employer obtained a bailiff’s report at the new employer’s headquarters, which revealed the presence of confidential documents (customer files, pricing templates) on the employee’s work computer. The former employer then filed a lawsuit against the new employer for unfair competition. The Court of Appeals dismissed the case: while the employee’s possession of the documents was proven, there was no proof that the new employer had appropriated them, as the new employer claimed to be unaware of their existence. 

The Cour de Cassation overturned the Court of Appeals’ decision: the mere presence of confidential information on the employee’s work computer is sufficient to establish its misappropriation by the new employer, and thus constitutes an act of unfair competition, subject to an award of damages.

Key Takeaways / Practical Implications: When hiring an employee from a competitor, remind them in writing that they are prohibited from bringing documents, files, or data from their former employer. In compliance with the IT policy and employee rights, implement checks upon an employee’s arrival: removable storage devices, email accounts, cloud storage, and file transfers.
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