There comes a time when the business owner has to discuss proprietary details about their plans or ideas of investments with their employees or partners. Of course, some of the information discussed may be very sensitive and should never land in the wrong hands. Yet, there are many cases when such information has leaked.
Fortunately, there’s always a way for business owners who want to maintain the secrecy of their ideas or ensure their proposition remains unveiled to outsiders. What they must do is to sign a Non-Disclosure Agreement (NDA) with the employees. An NDA would force the employees and partners to uphold the secrets of the agreements, maintain trust and prevent the leaking of crucial information.
What’s an NDA?
Also referred to as a confidential agreement, a Non-Disclosure Agreement is a legal-binding document governing the sharing of data or information between parties of the same interest. The document dictates the limits of the use or the disclosure of the information agreed upon.
In regard of any business or a company, an NDA would be defined as the contract agreement between entrepreneurs or business owners and their employees or partners. The principal aim here is to protect sensitive or confidential information. Signing this agreement means the employees or partners cannot discuss any data with anyone without the business owner’s knowledge.
What are some of the information contained in an NDA?
Information contained in an NDA could be a daily exchange of information with businesses. These may range from products and services, business plans and operations, finance or non-public accounting figures, technical and non-technical data.
Also, they may involve secret recipes, manufacturing processes, proprietary formulas, a sales contacts list, or an item setting your company apart from others. These will be in the NDA depending on the level and type of secrecy to be upheld. And this is achieved through involving employees or partners in the signing of a non-disclosure agreement. Once the employees sign the deal, they consent;
To uphold the information received with great confidence and prevent direct or indirect disclosure of the agreement’s content without authorization.
Not to commercially use the information or reproduce the details for their gains.
To avail either the originals or copies of the document they might have made or stored.
That said, every employee must ensure they know what they are consenting to before signing a non-disclosure agreement.
Benefits of signing an NDA with your employees
What happens to a firm when an employee leaves for another company or, let’s say, is fired? Of course, most would go with so much information about the organization. But, it can be unfortunate for firms without an NDA. Why? There would be no obligation on the employee to keep your sensitive or confidential data secret.
So, every information whose disclosing could harm the business or company is considered sensitive and confidential. That is why involving employees in signing NDA ensures the company has complete confidence in sharing their sensitive information.
Similarly, the contract reduces the chances of a leak, disclosure, or the possibility of the trade secrets and proprietary information landing in the wrong hands.
But should a company realize that its confidential information covered under the agreement is leaked, then the firm can hire an attorney to assist.
Are you looking for a Non-Disclosure Agreement form? Look no further than forms.legal by visiting our website NDA section today. We have detailed and updated documents that will be pretty useful to you.