Facebook – the danger for employers

Possible pitfalls

The recent surge in users of the popular social networking site Facebook has attracted significant media attention and seen vocal concern from employers. Aside from the loss to business productivity caused by employees spending excessive working time on these sites, is another less obvious danger. The law can hold employers liable for their employees actions and so employees who access Facebook while at work using their work PC's and/or laptops could be leaving their employers liable for the comments they make. Whilst this principle has not, as yet, been tested in the courts, it is only a matter of time before an unwitting employer finds itself having to defend its policies and or processes.

Case study

The first case on Facebook to reach the courts concerned the misuse of private information and the creation of a fake profile. Mr Raphael created a false profile on the networking site and claimed it belonged to an old school friend, Mr Firsht, with whom he had fallen out. The profile contained lies as to Mr Firsht's sexual orientation, religious and political views, as well as claiming that Mr Firsht and his company repeatedly lied and owed substantial amounts of money. Mr Firsht was awarded £22,000 in damages for defamation despite the removal of the profile, which was only available for a period of two weeks and only proven to have been viewed by five people.

Whilst the ruling emanates from a defamation complaint, the case nevertheless serves as a reminder to employers that actions on Facebook and other social networking sites can and do have legal consequences and associated financial penalties. Case law dictates that employers can be vicariously liable for the actions of their employees especially when they have taken place during working hours and so it is critical that employers take the necessary steps to protect their businesses from these risks.

Practical tips

If you would like further details on this topic, please contact Daniela Cohen or any other member of the Employment Group.

Issued October 2008.

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© Sheridans 2009