Employee Confidentiality Agreements

A confidentiality agreement (or non-disclosure agreement) is an agreement entered into by two parties that wish to share confidential information between them, while legally forbidding either party to disclose the information to any other person or entity. The agreement may be one-sided that is designed to prevent one of the parties from disclosing the information or mutual whereby both parties cannot disclose any confidential information received from the other party.Confidentiality agreements are used in the case of employer and employee relationship, wherein the employees need to have access to confidential information in the course of their employment, but the employer wants to ensure that the employee does not use or disclose this information for any other purpose.
This agreement performs several important functions:
1. It defines exactly what information cannot be disclosed.
2. Protects sensitive information from being disclosed.
3. Prevents forfeiture of patent rights, which in some cases occur automatically once a public disclosure is made.

A confidentiality agreement includes the following:
1. The complete names and contact information of the parties.
2. A complete description of what information is confidential (this list is often long).
3. Any cases in which restrictions on disclosure are not applicable.
4. The duration of the confidentiality.
5. Obligations regarding proper use of the information. and
6. Circumstances where disclosure is permitted (e.g. to the police or in court).


Today companies generally provide written terms of employment to a director, as to any other employee. It is advantageous to both sides to set down the package in an employment contract (for directors, also known as a directors service agreement), rather than in just a few words from the company.This director’s service agreement provides a complete legal and practical framework for any executive director. It covers all the requirements for an employment contract of a board member as well as clarifying the relationship between the company and the director so as to prevent conflicts of interest. The service contract is particularly strong on the protection of confidentiality and company secrets. The said agreement is flexible and can be used whether:
• The term of employment is fixed or running;
• The organisation is a company, charity or NGO (in the case of the latter two, the employee will be director level equivalent).


All employees should be provided with a written document outlining the terms of their employment (their job description, working hours, salary details and other information) on the first day of employment. When you take on a new member of staff, you should agree on the job description, working hours, and the exact salary the person will be earning from the beginning. This will avoid conflict later on, and will place you and your employee on a solid footing, creating trust in your working relationship.


An employment agreement is an official document that the employee and employer enter into in good faith. It is a legally enforceable agreement, either oral or written which defines terms and conditions of employment. The contract lists the rights, expectations and obligations of both the company and the individual. A contract negates at will employment in many cases, and includes stipulations regarding promotions, rewards and terminations.