What would your reaction be if you discover that your employee is sharing his trade secrets with his competitors? If you come across a case where your employee is leaking your trade secrets, you would be concerned and could lose your business to your competitors.
These reasons make it necessary to enter into an Employee Confidentiality Agreement with the employee. The clauses and provisions of the contract bind the employee and prevent him from leaking the company’s trade secrets to third parties or rivals.
Employee confidentiality agreement
The Employee Confidentiality Agreement can be defined as a written legal document, drawn up between the employer and the company employee, containing clauses and provisions to safeguard the company’s trade secrets by employees. It is also legally binding on both the employer and the employee. The agreement also stipulates the rights and duties of employees, during their stay in the company.
The contract also stipulates and obliges the employee to maintain confidentiality and non-disclosure of company secrets, inventions, intellectual property rights, property of the invention, trade secrets, legal issues and company information to any third person, competitor or any other rival company or entity. If the employee breaches the contract, then he may be removed from the service of the company or he may face legal action from the company, for revealing the company’s secret to a third party.
The employee confidentiality agreement form can be downloaded from the Internet, but the agreement needs to be drawn up with the active participation and consultation of the lawyer, as the confidentiality agreement deals with trade secrets and intellectual property rights . Lawyers are also competent in this field and can more securely bind employees to the terms and conditions of the form.