Agreements or contracts have one thing in common. Apart from the general things that may be placed in it like the terms and conditions, and the information which is generic to documents like these. But it is the purpose which is simply called the non-disclosure and confidentiality agreement. A variety of people may have heard of this and often asked themselves what is the whole point of this part of the agreement or the part of the contract? Why do they need to know about this before they sign? These are often the most common if not the most generic of questions when a person is asked to sign a contract or an agreement. To get to know what a non-disclosure and confidentiality agreement is, their purpose and of course how it is made, let’s move on to the definition found below. For more examples of this kind of agreement, you can also check out 24+ Non-Disclosure Agreement Examples & Samples – PDF, DOC.
A non-disclosure and confidentiality agreement is a document that completely states to the person who is going to sign it to not divulge any secrets or information about the company they are working with, the company they used to work with or the company they know and have worked with in the past. In addition to that, a non-disclosure and confidentiality agreement legally binds the employee for a certain period of time whether or not they may be working for the company or the business or not. During this period of time, they are not to work in the same nature of business until the agreement has run its course. Usually the period of time may only be around six months to a year, but it may also depend on the company and their rules.
Non-disclosure and confidentiality agreements are useful. Businesses and companies know that this agreement has a large impact on their company or business, as well as a way to explain to employees about the nature of it. Which means that how you write it will also matter. With that, here are steps in making a non-disclosure and confidentiality agreement.
Define your non-disclosure and confidentiality agreement. The reason for defining it is to make sure that your employee understands the severity of this kind of agreement. In addition to that, it is also best to give them the scope of what they can expect in a kind of agreement like this.
The company’s terms and conditions are up next. Apart from the normal information that comes with the agreement or the generic information that comes with the agreement, the terms and conditions will be based solely about your company and about the non-disclosure agreement you are writing. With that in mind, you must also be careful how you should word it. Since you are going to be giving your employees an opportunity to read and understand as well as to explain the reason for the terms and conditions that apply.
The responsibility of the employee to uphold the non-disclosure agreement should also be written and made known. In fact, some agreements tend to bold this part of the agreement for the employee to see and check. As well as to understand and accept that this agreement will hold true to what and how it was written. This includes the responsibilities of the employee while they are still employed to the company and when they are no longer employed to the company.
Write down the consequences of the agreement. In order for the non-disclosure and confidentiality agreement to work and to be taken seriously, you the employer have to write down the consequences which are legal and to state them in the agreement. This is not used as a scare tactic for your employee to obey, rather it is used as a means to make them understand that this agreement is serious and should be seen as such.
A non-disclosure and confidentiality agreement is a document that legally binds the employee. It is also a kind of agreement that states that the employee must not state nor work of the same nature as that of the company or business they are employed or have been employed for a certain amount of time.
The reason it is necessary is because the non-disclosure and confidentiality agreement is used to explain and to bind the employee. It is to state to the employee whether or not they are still employed to the company, they are not going to be working a job with the same nature, nor are they allowed to be a freelancer with the same nature of the work they have done.
To make an NDA all you have to understand is the consequences, the terms and conditions and the generic information you will often find in an agreement.
When you make an ND and a confidentiality agreement, you must also understand that there are things you have to take into consideration. You must also understand that the consequences and the conditions are important.