Employee Confidentiality and Non-Disclosure Agreement

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What is Employee Non-Disclosure Agreement?

An employee non-disclosure agreement is a legal document created by the Company which states that the employee should follow the rules of the Company and maintain its confidentiality, he/she should not disclose the trade secrets without permission/disclose any information about the Company to outsiders.

Benefits of Employee Non-Disclosure Agreement.

At first, the non-disclosure agreement helps the Company in protecting its sensitive information from the competitors to maintain its competitive advantage. It also has marketing advantages for the Company as it does not disclose all the information regarding its products and technical know-how.

Elements of Employee Non-Disclosure Agreement

  • Definition of what is defined to be confidential.

  • The scope of the confidentiality agreement by the receiving party.

  • Exclusions from the confidential treatment.

  • The term of the agreement.

Procedure

Frequently Asked Questions

1. When is the non-disclosure agreement formed in the Company?
It is advisable to hand over the non-disclosure agreement to the employee at the time of his/her joining to avoid conflicts later.
2. What are the topics included under the non-disclosure agreement?
It can be related to the Company’s trade secrets, technical information including methods, processes, formulae, compositions, inventions, etc. It solely depends on the company as to what are the information it wants to keep confidential.
3. Is the agreement amendable?
Yes, the amendments can be made to the agreement but should be executed by both the employer and the employee.

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