Is your company prepared for the challenges of the “gray zone”?
In today’s dynamic business environment, an increasing number of companies are encountering the so-called “gray zone” – employee actions that could be interpreted as early signs of competitive activity or private projects that may affect the company’s interests. Such behavior can pose a serious threat to trade secrets, reputation, and even financial results. Therefore, it is crucial to clearly define both employee and employer rights and obligations in advance to prevent potential conflicts and legal disputes.
In this context, the “gray zone” refers to activities where an employee’s actions are not explicitly prohibited by an employment contract, internal regulations, or labor laws, but they may be incompatible with the employer’s interests. These actions typically include:
🔹 Competitive activities – performing work for competitors or providing services to directly competing companies.
🔹 Private projects – activities that may conflict with an employee’s obligations to their employer, especially if company resources or knowledge acquired during work are used.
🔹 Misuse of confidential information – disclosing or using company information for the benefit of third parties.
How Can Employers Prevent Risky Employee Actions?
Employers can implement the following legally sound mechanisms to protect their business:
✔️ Clear and well-structured employment contracts – contracts should include specific provisions on employee loyalty, ownership of work products, and potential restrictions on competitive activities.
✔️ Confidentiality agreements (NDAs) for relevant employees – to safeguard trade secrets, NDAs should cover information that employees may only use in the employer’s interest.
✔️ Non-compete agreements – after employment ends, an employee may be restricted from competing with their former employer for a specified period. Such agreements must be proportionate and comply with legal requirements.
What to Do If an Issue Has Already Arisen?
If an employer detects or suspects that an employee is engaged in activities that may harm the company’s interests, it is essential to act legally and appropriately:
🔍 Internal investigation – the first step should be initiating an internal review while respecting employee privacy and legal rights.
⚠️ Preventive measures – if suspicions are confirmed, the employer has the right to take action, ranging from warnings to contract termination for gross misconduct.
⚖️ Civil liability claims – in cases of significant financial loss, an employer can pursue legal action to recover damages.
Balancing Employer Rights and Employee Freedom
An employer’s right to protect business interests must be balanced with an employee’s right to personal privacy and professional development. To achieve this, companies should establish clear and transparent internal policies outlining activities that are considered incompatible with employee duties. Regular legal training sessions can also help ensure that employees understand their legal obligations and the consequences of violating internal regulations.
In summary, well-defined employee conduct boundaries are a critical tool for businesses to protect their interests and ensure smooth operations. At the same time, properly implemented preventive measures foster a fair and trust-based relationship between employers and employees.
