Importance of non-disclosure and confidentiality agreement in Employer–Employee Relationship
A unique idea or model is crucial for every business to succeed. It is therefore of the utmost importance to protect any confidential information. In order to secure your business secrets and keep them from being disclosed by another party or your employees Non-disclosure Agreements are a must.
The personnel policy in any company sets out the processes and responsibilities that is necessary to ensure that the staff of an organisation contribute to the security of its information, depending on their role within the organisation, different individuals will have different levels of responsibility for information security, but in all cases these responsibilities need to be defined and individuals given appropriate training and support to enable them to fulfill their responsibilities.
What is not to be disclosed?
All information of the company, whether or not in writing, of a private, secret or confidential nature concerning the company’s business, business relationship or financial affairs( collectively, proprietors Information”) is the exclusive property of the company,proprietary information may include processes, products, methods,techniques,formulas,compositions,compounds,projects,devlopments,plans,research data, clinical data, financial data, personal data, computer programme, customer and supplier list, and contacts at or knowledge of the customers or prospective customers of the company.
Protect Trade Secrets
You can use a nondisclosure agreement to protect any type of trade secret – that is, any information that is not generally known and gives your business a competitive advantage in the market place .For example, using a nondisclosure agreement, you can prohibit someone from disclosing a secret invention design, an idea for a new website or confidential material contained in a copyrighted software program.
Why it is important not to disclose?
In the non-disclosure agreement employee will use the owner or company’s confidential information solely to fulfill its obligations and duties as part of the business relationship with the owner. The recipient shall not disclose any confidential information to any person except to its employees, directors, advisors or consultants on a need to know basis, who have prior to the disclosure of or access to any such confidential information agreed in writing to receive it under terms at least as restrictive as those specified in the agreement.
In today’s business world it is very important to protect the confidential information of the company from any unauthorized or advertent use through its employees .In particular, the recipient will immediately give notice in writing to the owner of any unauthorized use or disclosure of the confidential information and assist the owner in remedying such unauthorized use or disclosure of the confidential information.
A signed Non-Disclosure agreement will be best safeguard to protect the information in three ways:
1. It emphasis the importance of non-disclosure. You minimize the likelihood of your secrets being spread inadvertently by idle gossip or chance comments.
2.It can act as deterrent to any party who might consider deliberate disclosure. Such a person will understand that there will be consequences to their actions.
3. Should a violation occur, a non- disclosure agreement will work to your advantage in a court of law.