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A nondisclosure agreement is a written legal contract and is usually between an employer and an employee. NDAs are most commonly given when an employee is hired, fired or finalizing a settlement.Non-disclosure agreements (NDAs) and non-compete agreements, also called a non-competition agreement or covenant not to compete, have distinct purposes. Creating a nondisclosure agreement, or NDA, for incoming employees is a common step for many businesses. Nondisclosure agreements, often referred to as NDAs, have become one of the most common legal documents that workers sign. No, you may need to sign a NDA to GET or KEEP the job, but you are not required to sign one to EXIT the job. Now, this is something that just about every company should have. An employer might use a non-disclosure agreement (NDA) to stop an employee or worker sharing information. Confidentiality clauses are clauses inserted into employment contracts that obligate the employee to not disclose certain pieces of information. This type of agreement usually applies to new employees if they have access to sensitive information about the company.