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A confidentiality agreement is a written legal contract between an employer and an employee. The confidentiality agreement lays out binding terms and conditions that prohibit the employee from disclosing company confidential and proprietary information.
"There are several key pieces of information that should be included in NDAs, or non-disclosure agreements. The most important items include customer lists, financial and profit margin information, product breakdowns, bestselling segments and sales scripting and messaging."
Confidential information is generally defined as information disclosed to an individual employee or known to that employee as a consequence of the employee's employment at a company. This information isn't generally known outside the company or is protected by law.
At some point in your professional career, your employer will ask you to sign a Non-Disclosure Agreement, in order to protect their trade secrets. You may even have one sprung on you at a job interview, with little time to comb through the fine details. Don't stress, it's all standard business practice.
Personal employee information will be considered confidential and as such will be shared only as required and with those who have a need to have access to such information. All hard copy records will be maintained in locked, secure areas with access limited to those who have a need for such access.
Generally, confidentiality agreements are enforceable when they meet the general requirements of a contract.
You are under no legal requirement to sign a nondisclosure agreement if one is put in front of you, but a company might not be willing to hire you if you do not sign it.
In most cases, confidentiality agreements are signed when an individual is first hired and are valid through the termination of their employment or, in some cases, a period of time after employment ends. However, in some cases, you may be required to sign a confidentiality agreement prior to an interview.
To prevent employees from revealing sensitive information that could jeopardize your business, you might have them sign an employee confidentiality agreement. Businesses use employee confidentiality agreements to protect their innovative ideas, effective processes, unique products, or customer information.
Disclosure of Employees' Personal InformationEmployers are prohibited from disclosing the personal information of their employees without prior authorization. Failure to keep this information confidential may constitute a breach of confidentiality.