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Confidentiality Agreement

2 signers
1Employer
2Employee
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Protect Sensitive Business Information With This Confidentiality Agreement Template

A confidentiality agreement is a legal document that outlines the confidential information shared between two or more parties. This type of agreement is often used in business to protect trade secrets and other sensitive information. Confidentiality agreements can also be used in personal relationships to protect private information shared between family members or friends, but for this template, the focus is its use within a business setting.
Sample confidentiality agreement to protect your trade secrets
This confidentiality agreement template includes provisions for the parties involved and the confidential information to be protected. This agreement also includes a clause for the consequences of a breach of confidentiality. By signing this agreement, both parties agree to protect the sensitive business information outlined in this document.
It is important to note that while this confidentiality agreement template serves as a guide, it is not a substitute for legal advice. It is recommended to consult with a lawyer before using this template in your business.

Why Safeguard Confidential Information in Business

Confidential information, such as customer lists, trade secrets, patents, or sensitive financial data, can give a business a competitive advantage in the market. Without any form of protection, this information could easily be leaked and used by competitors. Additionally, businesses may have a legal obligation to protect sensitive personal information, such as medical records or client data, from unauthorized access.

Businesses that have grown quickly and want to limit the amount of information that gets shared about the company often use employee confidentiality agreements or non-disclosure agreements for new product ideas, effective processes, and customer details. A confidentiality agreement allows you to teach your staff about the insider secrets of your business while protecting your personal info from unauthorized access.

Using a confidentiality agreement can help prevent the disclosure of confidential information, as well as provide a legal basis for consequences if the agreement is breached. Despite being applicable in several contexts, these agreements are especially pertinent in businesses as well as non-public organizations as they prove essential to protecting internal data from being leaked.

What are the Parts of an Employee Confidentiality Agreement?

Depending on the company’s situation, employees can make differing arrangements. The agreement should contain a standard document that is signed by the employer.

Below are the common elements included in a confidentiality agreement:

  • Disclosing party (employer)
  • Receiving party (employee)
  • The definition of confidential information for the purpose of the agreement
  • The information to be kept confidential
  • Duration of protection
  • Consequences for breach of agreement
  • Signatures and date of the agreement

In addition to the above points, it is also important to include a clause describing how confidential information can be used by the other party. For instance, in a business context, access to confidential information may only be used for the purpose of completing job duties.

Employee non-disclosure agreement

A confidential agreement between employees or a non-disclosure agreement is any document or contract that protects a person or company’s confidential information from being disclosed. A confidentiality agreement must list specific data the employee cannot disclose.

The purpose of most confidentiality agreements is to protect the information that is gathered by employees and can’t be shared with other parties for a specific period of time. Your worker must sign confidentiality agreements in order to be effective. Nondisclosure agreements do not prevent employees from expressing unreported concerns over their conduct.

Ready to sign an agreement

To use this confidentiality agreement template, simply fill in the blanks with the relevant information and have both parties sign the document. It is recommended to have this agreement signed before sharing any confidential information with the receiving party, such as during the onboarding process for a new employee.

By signing this agreement, both parties agree to protect the sensitive business information outlined in this document and understand the consequences of breach of confidentiality. This agreement serves as evidence of the receiving party’s understanding and willingness to protect confidential information.

Non-compete clauses

A non-compete agreement clause is a term in a contract that prevents employees from competing with their employer during or after their employment. This can include joining a competing business, starting a similar business, or sharing confidential information with competitors. Non-compete clauses typically have time and geographic limitations.

Protected information

If any provision in a confidentiality agreement is deemed invalid, then such provision should be severed from the agreement, and all other provisions should remain valid and enforceable. It’s important to note that not all information can be protected through a confidentiality agreement. Anything that is publicly available or already known by the receiving party cannot be included in the agreement.

FAQ About Confidentiality Agreements

A confidentiality agreement is a legally binding contract between the disclosing party and the receiving party in which both parties agree to protect certain information that is considered confidential. If a receiving party breaches the terms of the agreement, they can face legal action.
A confidentiality agreement can only be terminated in certain circumstances, such as if both parties agree to terminate it or if the information is no longer confidential. A court may also terminate the agreement if it is found to be overly restrictive or against public policy.
Not all information can be protected under a confidentiality agreement. Anything that is already known by the receiving party or publicly available cannot be included in the agreement.
Use any of the links on this page to get access to our editable template. In this document, you’ll find out what is in a confidentiality agreement, its purpose, and instructions on how to fill it out properly.

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