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Client confidentiality is the principle that an institution or individual should not reveal information about their clients to a third party without the consent of the client or a clear legal reason.he access to a client's data as provided by the institution in question is usually limited to law enforcement agencies and requires some legal procedures to be accomplished prior to such action (e.g.: court order issued, etc.).
Quick Answer. Confidentiality in the workplace is important as it helps in managing disputes, ensures security of delicate information, promotes loyalty, protects clients, prevents crime and discrimination. Confidentiality is often assured under an organization's policies and therefore anyone who breaches the agreement is liable to a lawsuit.