Free Employee Confidentiality Agreement

An employee confidentiality agreement is a legally enforceable contract that prevents employees from divulging the confidential information of its employer to unaffiliated people and entities. The confidential information it protects includes, but is not limited to, trade secrets, financial information, customer information, details of intellectual properties, and procedure manuals.

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Suppose you are hiring employees who will have access to sensitive company information during the course of their job. As the business owner and employer, you likely want to protect this information from going outside your business. You may want to have the employee execute an Employee Confidentiality Agreement. By signing this document, the employee agrees not to misuse your company’s confidential  information.

Frequently Asked Questions

A legally binding document between an employer and employee that protects the company’s proprietary information.  It ensures that the employee will not share or disclose the specified information for a specified amount of time.

Typically, the confidentiality agreement will be entered into in connection with the beginning of an employee’s tenure at a company. However, it can also be used for existing employees who have previously not been privy to confidential information of the company. Even if you trust the employee, the confidentiality agreement will serve as an added measure of security to prevent the unauthorized disclosure of confidential information by your employees or, at the very least, give your company recourse in case an employee does make an unauthorized disclosure.

To create your agreement, provide: 

  • The Effective Date: Select the date the agreement will go into effect.

  • Employer Details: Give the name and address of the employer.

  • Employee Details: Give the name and address of the employee.

  • Consideration: Specify any incentive is being given to the employee in exchange for executing this agreement.

  • Specific Examples: You may give specific examples of confidential information that the employee will have to keep

  • Non-Circumvention Clause: The employee confidentiality agreement can contain an optional non-circumvention clause. The non-circumvention clause prevents the employee from bypassing your company and doing similar business directly with company affiliates and customers. 

  • Term: The primary term of the employee confidentiality agreement is the length of employment. After the end of their employment relationship with your company, you must determine how long they will remain bound to keep the information disclosed to them confidential. 

Generally, an employee confidentiality agreement does not need to be notarized – both parties only need to sign the document to make it legally enforceable. A witness may be helpful in the event the employee challenges the agreement, but a notary is not necessary.

Please Note: The use of a notary ensures that no one challenges any signatures later and is a secure way to firmly establish the effectiveness of your document.