 |
 |
 |
Download confidentiality agreement template in Microsoft Word format.
Employee Confidentiality Agreement: Why You Should Include It When Hiring a New Employee
Are you the owner of a small to medium-sized business who regularly hires new employees to meet the changing demands of your business? Do you currently include an employee confidentiality agreement as part of the paperwork you typically provide to new employees? If not, perhaps you should, especially if that employee will have access to any proprietary and confidential information about your company. While it’s true that non-compete agreements are not enforceable in many states, employers can restrict an employee from using, disclosing, thieving or compromising sensitive information about their company. This includes any private trade secrets, sensitive computer data, copyrights, patents, client lists or any other pieces of information that you would rather not be disclosed to the general public.
Just because an employee works for your company, it does not give him/her the right to use your company’s information for their own benefit. This information is owned by you, is confidential, and therefore should not be subjected to theft or disclosure just because an employee might get his hands—or his eyes—on it. However, to ensure this information remains private, an employee confidentiality agreement is essential. These agreements are legally binding, which basically means if they are breached—if an employee steals your information—you are entitled to compensation.
Employee Confidentiality Agreement: What Topics/Language Should Be Included
The manner in which an employee confidentiality agreement is drafted will vary depending on the type of business you own and the information you wish to remain confidential, but they should always be very thorough and address every aspect of your business’ confidentiality. This will ensure that there is no information omitted and that you remain continually protected. In general, a confidentiality agreement should:
• Clearly and specifically define what information should remain confidential. Keep in mind that any information that is not specifically recorded in the agreement will not be protected, so make sure you are very thorough when listing these pieces of information.
• Explain why the employee will need to have access to the confidential information—for example, “to conduct business on your behalf”—and how he/she is permitted to use that information.
• Discuss and define what is meant by the terms “no disclosure” and “no use.” This section of the document is where the protection of your information is fully explained and comes into play. It should, in detail, explain to the employee that he/she is not to share or use this information in any other manner than the confidentiality agreement permits.
• Define the terms of the agreement with respect to time. Most confidentiality agreements will protect the business owner up until the point when keeping such information confidential will become an undue burden on the employee.
You should always have the employee confidentiality agreement reviewed by an attorney to ensure its legitimacy and enforceability, but just by taking this simple step and including the agreement with a new employee’s paperwork you can ensure that your private and confidential information remains safe and secure.