A non-disclosure agreement is usually signed by an employee in a company, because of which it is also known as employee confidentiality agreement. In this agreement, the employee agrees not to disclose any important information, trade secrets, ideas or strategies to other employees in the office, to the press, other rival companies or general public. In this way, the agreement protects the interests of the employer from rival firms by keeping its business strategies and operations secret. Such an agreement has a fixed duration or term and the agreement usually becomes null and void once the employee leaves the organisation. There may be other special terms and conditions attached to the agreement.
This agreement also comes of use when the company wants to safeguard a new product or idea which could have an effect on the company and the industry. Sometimes employees may be asked not to disclose information about things like the compensation they get for their work to other employees.
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Sample Non-Disclosure Agreement
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