What Nondisclosure Agreements Can Be Used For

Any company is bound to have privileged information that only a restricted circle of personnel is privy to. Such information needs to be protected, and Irvine Employment Lawyers recommend that you do this using a confidentiality agreement.

Basically, a confidentiality agreement or a nondisclosure agreement is a document that clearly specifies that the employee must refrain from disclosing any confidential or private information after leaving the company. The nondisclosure agreement must be signed when the employee joins the organization. Irvine Employment Lawyers suggest that you require new employees who may have access to such privileged and sensitive information to sign a nondisclosure agreement as part of their general work contract.

The nondisclosure agreement must clearly prohibit the person from leaking out any trade secrets or confidential information about the company, its processes, the products it manufactures, its marketing strategies and all kinds of other information that you do not want competitors to access. All of these prohibitions should clearly be outlined in the agreement. Also, include the stipulation that the person is absolutely prohibited from disclosing this information to others, after his term at the company is up.

Make it clear to employees that they could face legal consequences if they breach the terms of the nondisclosure agreement. As an employer, you are well within your rights to protect sensitive information and trade secrets by getting employees to sign a nondisclosure agreement. You can easily take legal action if an employee violates a confidentiality contract. Also, make sure that the agreement includes any choice of law forum that can be used if a dispute arises, or there is a breach of contract or violation of confidentiality.

Before your employee leaves your company, ensure that all secret and confidential materials, and documents are handed over to the company. Maintain an inventory of all important documents so that all documents in possession of an employee can be returned safely back to the company. That ensures that employees are not able to walk off your property with secret documents and other materials.