A confidentiality agreement, or privacy agreement, refers to a legally binding contract between an employer and an employee used to protect sensitive information.
What Can Be Included in a Confidentiality Agreement?
Confidentiality agreements can include:
- Any information that is not common or public knowledge
- A non-competition clause, or exclusivity clause
- A non-solicitation clause
When to Use a Confidentiality Agreement?
Confidentiality agreements are used when a company wishes to prevent sensitive information from being leaked to the general public.
They are commonly used during business negotiations. Examples of situations when confidentiality agreement can be use include:
- Job interviews
- Employee regulations
- Sale of a business
- Relations with suppliers
- Work with contractors or consultants
How Long Does a Confidentiality Agreement Last?
A confidentiality agreement lasts as long as the contract stipulates. If no dates are specified, the information will remain confidential indefinitely.
What Happens if an Employee Breaches their Confidentiality Agreement?
If an employee breaches their confidentiality agreement, their employer can take legal action against them including lawsuit or dismissal.
What Is Considered Confidential Information?
Confidential information is any fact, detail, or data that are not common or public knowledge. For example, customer information, intellectual property, or accounting information can be confidential information.
What Is the Difference Between a NDA and a Confidentiality Agreement?
Non-disclosure agreements (NDA) are used when there is an unilateral flow of classified data between parties. Confidentiality agreements are used when two or more parties share proprietary information.
They are both used to protect the secrecy and privacy of sensitive information.
