Why Is It Important To Have Employees Sign A Confidentiality Agreement

A unilateral agreement is a contract that requires a party to the agreement – usually an employee – not to disclose the confidential information he or she learns about the job. Most confidentiality agreements fall into this category. While many such agreements are used to protect a company`s business secrets, they can also be created to protect the copyright of information produced by an employee`s search. Contract and business researchers in the private sector and professors in research universities sometimes have to sign NDAs that give the rights to any research they have with the industry or the university that supports them. In addition, not all knowledge in an NDA is protected. If the information is discovered on the basis of a court-ordered subpoena, the victim cannot appeal. Or you have restrictions in your NDA that are a little too broad, which can lead to legal conflicts that are generated by your employees. A non-formal notice agreement prevents dismissed employees from taking your company`s customers, employees or other contacts, either for themselves or for another company. For example, a laid-off employee cannot try to take your client list with you or take customers with you. Many organizations have policies and practices that help them not to have to apply their employee confidentiality agreements later. One of these practices is to send a formal letter to any employee who leaves the organization (or an independent contractor whose work is completed for the company) officially recalling his contractual responsibility. It may be helpful to include a photocopy of the agreement signed with this letter.

If you introduce NDAs into the mix, you`re still at risk of finding yourself in a legal battle. For example, a former employee may break the agreement, forcing you to take legal action. Suffice it to say that some courts do not like companies to create confidentiality agreements that unfairly limit a person`s right to work. Even if your contract has been breached by the employee, you may lose your case if the court deems it too restrictive. If you have employees who are not related to confidential data, they do not need to sign an NOA. HR professionals are familiar with the concepts of THE HR space, but when the law comes into play, it can quickly become complex. When companies require signatures for such agreements, it is proposed to request legal services to ensure that the documents are binding. The same applies to all updates or new agreements that must be signed once a staff member has moved into their role. Simply put, when it comes to legal advice, it is better for a company to have it and not need it than to need it and not to have it. In the competitive world of technology, there is also a real risk that talented employees will leave your company to create their own start-up. The need for a company`s employee confidentiality agreements will change over time, just as the company itself will change and evolve.

It is important to regularly review the language contained in the agreement and make changes if necessary to ensure that it remains appropriate and effective in order to protect proprietary information.