4. Legal foundations 23 July 2010 General rules (subject to exceptions): Blurred boundaries Employee must obey the lawful commands or directions of an employer Employee cannot be terminated because of their after hours conduct Employers own the work output of employees Employer has no right to control the activities of employees after work Employers may be vicariously liable for the actions of their employees Work life Personal life Old world legal principles are applied to a web 2.0 world  Rostron Carlyle Solicitors | www.rostroncarlyle.com | Malcolm Burrows (07) 3009 8438

7. Legal risks... continued 23 July 2010 www.rostroncarlyle.com Employees Third parties Legal risk Employees Third parties Confidential information – loss of and disclosure  - Trademark infringement   Copyright infringement   Privacy  - Discrimination  - Misleading and deceptive conduct  - Passing off (fairly remote)   Negligent misstatement  - Defamation   Occupation and industry specific risks  - Cyberbulling  - Termination of employees – risk to unfair dismissal  - Reputation Risk  

9. Legal risks... continued 23 July 2010  Rostron Carlyle Solicitors | www.rostroncarlyle.com | Malcolm Burrows (07) 3009 8438

36. Legal risks... (Revisited) 23 July 2010 www.rostroncarlyle.com Employees Third parties Legal risk Employees Third parties Confidential information – loss of and disclosure  - Trademark infringement   Copyright infringement   Privacy  - Discrimination  - Misleading and deceptive conduct  - Passing off (fairly remote)   Negligent misstatement  - Defamation   Occupation and industry specific risks  - Cyberbulling  - Reputation risk   Employee dismissal for unsuitable conduct  -