Free Employee Confidentiality Agreement
An Employee Confidentiality Agreement is signed by both the employer and the employee, where the latter is to promise not to disclose any sensitive information of the former for a period of time.
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There are many uses of an Employee Confidentiality Agreement, a standard business practice nowadays. It is advantageous if you have much data to protect or if you have to protect new developments in your business.
The goal of an Employee Confidentiality Agreement is to protect that information from reaching your company's competitors. Having your employees sign this agreement likely gives you peace of mind to carry on with your business with one less concern.
The most vital aspect of an Employee Confidentiality Agreement is to make it specific enough to be easily enforceable. A potential problem, in general, is if the scope of what's being protected is too broad. A court of law can strike out that and any unreasonable promises extracted.
Also, the term of the agreement must be set. It should specify if the employee is not to disclose certain information for some time or in perpetuity. You should also determine if it is necessary to abide by the agreement if the employee leaves the company and how long after that.
Depending on your state, an Employee Confidentiality Agreement may also be known as:
Any employer may decide to ask future or current employees to sign an Employee Confidentiality Agreement. It is standard practice in specific industries, for example, technology. A potential employee may decide against signing the agreement, for which the employer would have the right to withdraw the employment offer.
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If you are a business owner who is always hiring, it may be smart to ask your employees to sign an Employee Confidentiality Agreement. Instead of hiring a law firm or risking a mistake on your own, you can use a template to create your agreement.
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For an Employee Confidentiality Agreement to go into effect, both parties need to agree to the terms and sign the document. Notarization isn't necessary, but having a witness could be beneficial if there's ever a dispute in the future.
Both parties are entitled to have a physical copy of the signed Employee Confidentiality Agreement. The employer should keep the document with the rest of the employee records. As for the employee, they may want to keep the copy in a safe and secure location.
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