confidentiality agreement for employee

Facts and Importance of Confidentiality Agreement for Employee



The confidentiality agreement for employee is generally used by the employer who wants to make sure that their employee won’t leak any crucial information related to the business and its operation. The written document is created so that employers have a legal power that will prevent the employees from endangering the business and its operation.


Understanding Confidentiality Agreement

So, what is confidentiality agreement for employee, really? It is a written contract where the employee agrees that they won’t disclose or get profit from any crucial information that is related to the company’s management and operation. Basically, one party (the employee) needs to promise that they will keep the trade secrets and not ‘leak’ out the company’s secrets without getting the authorization from the superior. It is a binding agreement until the employee is released from the written document’s obligation or until the information becomes common.


In the past, such contracts were quite common among celebrities and executives. However, such a contract is now common among ordinary and regular workers. If you working in the industry where ideas are the main ‘machine’ that keeps the company running, it is possible that you may be asked to sign one. On the contrary, if you have such a business, it would be a good idea to have such an agreement so that your employees won’t endanger your business.


The Facts about the Agreement

This agreement is also known as the NDA or Non-Disclosure Agreement. It is meant to protect the private company info, such as business strategies, financial details, services or products in development or underway, customer lists, and also to prevent employees from getting profits or communicating the sensitive information. When the agreement is broken, then the injured party can ask for compensation or monetary damages for breach of contract.


In most cases, individuals are asked to sign the agreement when they are first hired. It would be valid through their working period. But it is also common that they may be asked to sign the agreement before an interview.



In most cases, the contents of the agreement are:

  • The matter that you can’t work for the company’s competitor
  • Anything that you got would be the company’s property
  • You give up the right for a trial in the event of an issue with the contract


It is crucial that don’t agree to things that may obstruct your ability to get or find other positions. Feel free to check our collections of confidentiality agreement for employee templates so you can choose one fits your needs.

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