Emirates: Individual fined AED 100,000 for disclosing confidential data from previous business entity
In a recent court ruling, a former tax obligation representative has been ordered to pay Dh100,000 to his previous business as compensation for damages caused. The legal action, a civil case filed by the company, was initiated due to the former employee's actions causing significant losses.
The damages incurred by the company include both material and moral damages. The former employee's revelations, which included information related to the business's rate of interest, led to the loss of multiple clients and financial losses for the company.
In addition to the civil case, a criminal case was also filed against the former employee. He was convicted in absentia and fined Dh10,000. However, the total amount the former employee is required to pay to the company is now Dh210,000, which includes the Dh100,000 in damages and the Dh10,000 in fines from the criminal case.
The court ruling was issued by the Abu Dhabi Family Members and Civil Administrative Situations Court. It is important to note that the court ruling is binding, and the former employee is legally obligated to comply.
While a search for similar cases in the UAE did not yield specific results, it is well-known that UAE laws place a high value on confidentiality and hold tax representatives accountable for any breaches of this confidentiality. The exact details of this case remain confidential, but it serves as a reminder of the potential consequences for such breaches.
The order also includes payment for the business's legal expenses, further highlighting the financial impact of the former employee's actions. The former employee surrendered after the legal action was initiated, but his actions resulted in the loss of multiple clients for the company.
This case underscores the importance of maintaining confidentiality in the workplace and adhering to professional responsibilities. It also emphasises the potential legal and financial repercussions for those who fail to do so.
The financial losses suffered by the company were not limited to the material damages; the former employee's disclosure of business-related finance information, such as the business's rate of interest, led to the loss of numerous clients in the general-news sector, exacerbating the financial impact. The scope of the former employee's obligation to the company, in light of the court ruling, extends beyond the Dh100,000 compensation for damages and the Dh10,000 criminal fine, encompassing the business's legal expenses as well.
