Post-Termination Confidentiality and Legal Insights: Employment Lawyer in KL Malaysia Discusses Jayonik v Agriquip

BY Employment Law Malaysia

Enforcing Post-Termination Confidentiality in Malaysia: Legal Lessons from Jayonik v Agriquip

Upholding post-termination confidentiality obligations is a complex and often challenging endeavour for employers in Malaysia. Courts require clear, credible evidence before ruling in favour of claims involving breach of confidence. This principle was reaffirmed in the High Court case of Jayonik Sdn Bhd v Agriquip Machinery Sdn Bhd & Ors (Civil Suit No.: WA-22IP-66-11/2021), which serves as an important precedent under employment law Malaysia.

Case Summary: Confidentiality Dispute and Alleged Conspiracy

Jayonik Sdn Bhd, the plaintiff, employed the 2nd and 3rd defendants and marketed a product known as the Airside GSE Simulator. These employees later joined Agriquip Machinery Sdn Bhd (the 1st defendant), who was also Jayonik's exclusive distributor.

Under their distributor agreement, Agriquip agreed not to engage with POS Aviation and AeroDarat—entities already in discussions with Jayonik. Jayonik provided Agriquip with a demo simulator to aid their marketing efforts. However, allegations later emerged that Agriquip:

• Engaged with the restricted parties (POS Aviation and AeroDarat)

• Marketed the simulator as their own

• Recruited Jayonik’s former employees

While Jayonik and Agriquip resolved the matter through a consent judgment, Jayonik pursued separate claims against the ex-employees for breach of confidence and conspiracy to injure.

Key Court Findings: Evidence is Essential

The High Court ultimately dismissed the claims against the 2nd and 3rd defendants, reinforcing several legal principles under labour law Malaysia:

1. Lack of Specificity in Confidentiality Claims

Jayonik failed to clearly define what confidential information was misused. Vague references to product design were insufficient.

2. Demonstration Unit Already Provided

Since Agriquip received the simulator for promotional purposes, there was no exclusive link between the former employees and the alleged leak.

3. Inference Without Evidence is Not Enough

The Court refused to rely on assumptions. The claim that the ex-employees must have leaked confidential information was not backed by factual proof.

4. No Proof of Conspiracy

The conspiracy to injure claim also failed due to lack of detailed pleadings and corroborative evidence.

Lessons for Employers: How to Protect Confidential Information

This ruling provides critical insights for employers seeking to enforce employment contract Malaysia clauses post-termination:

1. Draft Detailed Confidentiality Clauses

Ensure employment contracts are customised with specific non-disclosure terms. Consult an experienced employment lawyer Malaysia to tailor legal protections.

2. Implement IT Safeguards

Use data access restrictions, tracking software, and periodic audits to limit internal leaks.

3. Conduct Forensic Investigations

If a breach is suspected, digital forensic experts can provide vital evidence admissible in court.

4. Document and Monitor Access

Keep accurate logs of who accesses sensitive data. These records can support legal action if needed.

Legal Help for Employers and Employees

If you're navigating similar disputes, securing expert legal support is key. Whether addressing workplace harassment Malaysia, salary disputes Malaysia, or termination of employment Malaysia, an employment law firm Kuala Lumpur can provide effective guidance.

From drafting enforceable employment contract Malaysia clauses to pursuing claims involving unfair dismissal Malaysia, employment rights Malaysia, or discrimination at work Malaysia, legal counsel ensures your rights are protected under the Malaysian employment act.

Looking for an employment lawyer near me Malaysia? Trust Employment Law Malaysia for dedicated support on:

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