This document helps establish protection of company’s confidential information from being shared or misused by the employee having access to it.
A company can sign non-disclosure agreement (NDA) with a new employee or existing employees. This document helps establish protection of company’s confidential information from being shared or misused by the employee having access to it.
Some of the key things one has to keep in mind while creating an NDA between Employer and Employee are:
- Contact Information of the employer and the employee (Parties): NDA is a contract between the employee and the employer. 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.
- Company’s 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 new employees can not disclose the secrets learned from their previous employers or clients. Employers might be tempted to take advantage of such information, but it always has the danger of getting sued.
- Return of Materials: This clause is added to ensure the employee returns all materials containing trade secrets when he/she leaves the company. The employee should be reminded of this obligation before leaving the company.
- Confidentiality Obligation Survives Employment: This addition to the contract makes it clear to the employee that the contract does not end with the end of employment. As long as the material remains a trade secret, it is the duty of the employee to keep it a secret.
- Signatures: A contract is a legally binding document. So, it has to be signed by the employee 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 an employee. You can use Legitt template for creating an NDA between an Employee and an Employer 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
- 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 contract worker. You can read more about NDAs signed between a company and its contract workers here
- NDA signed between a company and a client. You can read more about NDAs signed between a company and its client(s) here
Legitt 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.