confidentiality agreement for employees

Confidentiality Agreement for Employees: When You Need One?



Confidentiality Agreement for Employees is generally used to protect the company’s secrets from the world. All companies have their own sensitive information or secrets that may affect their operation and existence. With the agreement, it is expected that the employees won’t leak out company’s sensitive info and the business can run as usual without the excess worry that someone (from within) would blurt it out.


The Situation

You build the business through hard work, blood, and tears. And despite the fact that you hate it to reveal your secret with other people (such as your employees), you still need to let them know one sensitive info or two. And such information can be super sensitive because it may affect the business if it ever gets out. That’s why you require your employees to sign Confidentiality Agreement for Employees before hiring them so you know that the company’s secret will be safe and sound.


About the Agreement

Often called as the NDA or Non-Disclosure Agreement, this written contract is the document preventing employees from leaking out confidential and sensitive information about the business. That’s why it is crucial that the agreement must be specific and details – it can’t be broad or too general. However, the agreement can’t be used by company to prevent employees from revealing illegal or unethical activities.


The Confidentiality Agreement isn’t exclusive to employees only. It can also be used when you want to work with other people, parties, or companies, such as investors, independent contractors, or vendors.


Types of Confidentiality Contract

Not many people know this, but such a Confidentiality Contract comes with 2 major types:

  • Mutual agreement. It involves two parties who are both reveal the confidential and sensitive info
  • Unilateral agreement. It involves two or more parties but only one party revealing the confidential info.


When is such document signed or presented? Different companies may execute different ways of the NDA. In the most common setting, the company may require the employees to sign the contract after they are confirmed being hired and before they are officially hired. However, some companies may even require the potential employees to sign the agreement before the interview. It means that every information revealed during the interview can’t go outside of the room.


Getting the Templates

In the event that you are looking for a template for your document, you can always check our collections and library. We have plenty of examples for Confidentiality Agreement for Employees that you can use for your needs.


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