This document helps establish protection of company’s confidential information from being shared or misused by the contract workers or having access to it.
A lot of companies hire a mix of permanent employees and contract workers. There are different employment agreements signed for employees and different for contract workers. This is because contract works are generally hired for a specific engagement and a specific timeline. This document helps establish protection of company’s confidential information from being shared or misused by the contract workers or having access to it.
Some of the key things one has to keep in mind while creating an NDA between an Employer and Contract Workers are:
- Contact Information of the Parties: Contract Worker NDA is a contract between the Employer and the Contract Worker. So, it must contain the contact information of the two parties. For the employee, the employee information needs to be added. For the employer, the employer as well as the employer representative (authorized signatory) information needs to be added.
This information needs to be added at the start of the contract.
- Trade Secrets: This section defines your company’s trade secrets. It spells out the type of information and material that should be considered as trade secrets. Some of the information of the company is available in public domain while there is a set of information that is considered confidential and cannot be shared in public. This section defines the confidential information and trade secrets.
- Confidential Information of Others: It is a good idea to include the clause that the contractor you are hiring can not disclose the secrets learned from its previous clients.
- Confidentiality Obligation Survives Engagement: Contractors are generally hired for a specific duration of time or a specific project/engagement This addition to the contract makes it clear to the contract worker that the contract does not end with the end of engagement. As long as the material remains a trade secret, it is the duty of the vendor or the contractor to keep it a secret.
- Signatures: A contract is a legally binding document. So, it has to be signed by the contractor and a representative of the employer. Have a separate section at the bottom of the document for both the parties entering into the contract. The parties can sign the document digitally or as hard copies.
The inclusion of the above listed points covers all the key points that are important to create an air-tight NDA with a contractor. You can use Legitt template for creating an NDA with a contract worker here.
As a business you might be creating a few other NDAs with other stakeholders.
Some of the commonly used NDAs are:
- General NDA. You can read more about general NDAs here
- Employer-Employee NDA. You can read more about NDAs signed between employee and employer here
- NDA signed between a company and a vendor or a service provider. You can read more about NDAs signed between a company and its vendor/service provider here
- NDA signed between a company and a client. You can read more about NDAs signed between a company and its client(s) here
Legit is a platform where you can create contracts using our templates created by professionals or use AI to help you create agreements and contracts. Then you can automate and create workflows for the contracts and track them as smart contracts on blockchain.