Non-Disclosure Agreements


An important aspect of employing people into a company is presenting them with a non-disclosure agreement. This protects the company from any unforeseen disagreements that may arise between the employee and the company. It also prevents employees from saying more than they should about the company when certain facts should be kept confidential. Failure to adhere to such an agreement can have serious legal implications, and may result in termination or even a lawsuit.

Is there something to hide?

The question can be asked as to whether non-disclosure agreements are ethical, because in short, these contracts are binding employers to keep a company’s secrets. So what is there to hide? The fact is: a company has every right to keep certain aspects of the business confidential. These confidentialities protect the company from competitors learning their systems, and also prevents the public from learning anything that may skew its reputation.

Legal repercussions

If someone who has signed a non-disclosure agreement breaks that agreement by saying more than he or she should, the company may take action such as terminating employment. If the person has already left the company, there are various clauses that hold the person to that agreement for a certain amount of years, or sometimes even for life. A person who has left the company and breaks that agreement, may have to suffer the company taking legal action against him or her.

Elements included in a typical non-disclosure agreement

The following factors are usually included in a properly compiled non-disclosure agreement:

There are a lot of benefits to setting up a standard non-disclosure agreement for any company that has several employees. This will ensure the confidentiality of what goes on in the company so that needless information is not leaked. Employees should see these agreements as a standard part of working at a company and not read anything else into it other than the safety of the company and all those who work there.