Employee Non-disclosure Agreement Template

Employee Non-disclosure Agreement Template

What Is an Employee Non-Disclosure Agreement?

An Employee Non-Disclosure Agreement is a legal contract signed between an employee and employer in which an employee is legally bound not to disclose certain types of information that they have access to due to their employment in a company. The purpose of the agreement is to secure the employer and their business from any potential information leakage that can be harmful to them.

Alternate Names:

  • Employee Confidentiality Agreement;
  • Employee NDA.

Businesses can use a Non-Disclosure Agreement to protect different types of confidential information, which can include know-how, trade secrets, software, client base, technical information, data about goods produced by the company, and other types of proprietary data. The agreement is supposed to guide the party, which has received access to the confidential information, on how to work with such information, how to protect it, and what they are not allowed to do in any case.

An Employee Confidentiality Agreement template can be downloaded belowor you can make your own document using our online form builder.


How to Make an Employee Confidentiality Agreement?

Before making a contract, a filer should research the state law and check if there are any specific regulations on this subject. Some states have restrictions concerning different aspects of the agreement, like time frame or location. Generally, an Employee Confidentiality Agreement Form should contain parts, which include the following:

  1. Title. The document should start with a title for the convenience of both of the involved parties.
  2. Parties Involved. Here parties should enter their names and state their title in the deal. Usually, an employer is a disclosing party and an employee is a receiving party.
  3. Relationship. In this part of the document, parties should designate the nature of their relationship by stating the requisites of the employment contract, or any other document on which their relationship is based on.
  4. Subjects. Parties may use this section of an agreement to describe which exact confidential information an employee is bound from disclosing, and what kind of actions a receiving party may or may not perform.
  5. Time Frame. The period of time while the agreement is in power should be stated here. It can be presented by dates or by a time frame.
  6. Rights and Responsibilities. It should be the biggest section of the contract since filers must describe in detail the rights and responsibilities of each party. In the future, it will help to avoid potential misunderstandings.
  7. Penalties. Here a filer should list fines and any other possible penalties that might be applied to the parties if they violate the contract.
  8. Governing Law. The agreement must contain a clause about the state law in accordance with which it should be governed.
  9. Contact Information. The employer and the employee must state their contact information for notification purposes. It should include a mailing address, email, and telephone number. If the parties are using representatives, they should state their contact information as well.
  10. Signatures. To state their will and express their agreement with everything written in the document, parties must sign the contract.

Depending on the circumstances of the situation and the state law, filers can include other sections in the document, such as non-compete clauses, jurisdiction, fees, and expenses, severability, etc.

An Employee Confidentiality Agreement is the best way to protect a business from unsolicited data leakage. However, the penalties might be applied only after litigation, in which the company will have to prove their right to secure any of their sensitive information. Lawsuit practices are different from state to state, to learn more about it a filer should make an arrangement with a local lawyer.

Related Forms and Templates:

Download Employee Non-disclosure Agreement Template

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