Can we take legal action against ex-employee for stealing data?

We are a Market Research company dealing with confidential data of our clients. One of our employees, working with us for the past 7 years was asked to resign due to continuous non-performance in the past few months. His last working day was 31st March 2024. In the first week of May 2024, we came to know that he has started exact same business like our company. Closer investigation revealed that the said employee had already registered a LLP firm in the name of his parents in Oct 2023 itself. He had also created a new website offering same services while he was working with us. The contact details on this website shows his phone no as the contact number. We are also quite sure that he has stolen our company's confidential data too from his laptop. Before leaving he also instigated other employees to leave the company by saying that this company has no future. Can we take any kind of Criminal, Civil legal action against this employee? If yes, what all?

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Advocate By LEAD INDIA Answered: 22 Feb 2025

The employee's actions may constitute criminal offenses like data theft, breach of trust, and unfair competition. You can file a criminal complaint for theft and fraud, and a civil suit for damages and breach of contract. Seek an injunction to prevent him from continuing his new business using your company's confidential data. It is advised for consulting a lawyer to protect your intellectual property rights. For further legal assistance contact us on our helpline number.
 

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