What would be your reaction, if you find that, your employee is sharing your trade secrets with your competitors? If you come across any instances where your employee is leaking out your trade secrets, you would be worried and may loose your business to your competitors.
These reasons make it necessary to enter into Employee Confidentiality Agreement with the employee. The clauses and provisions in the agreement bind the employee and, prevent him from leaking out trade secrets of the company to the third party or rivals.
Employee Confidentiality Agreement
Employee Confidentiality Agreement can be defined as a written legal document, drawn between the employer and employee of the company, which contains clauses and provisions for safeguarding the trade secrets of the company by the employees. It is also legally, binding on both the employer and employee. The agreement also stipulates the rights and duties of the employees, during his /her tenure with the company.
The contract also stipulates and bound the employee for maintaining confidentiality and non-disclosure of company secrets, inventions, intellectual property rights, invention ownership, trade secrets, legal issues and company information to any third person, competitor or any other business or rival entity. If the employee breaches the contract, then he can be removed from the service of the company or may face legal action from the company, for disclosing the secret of the company to third party.
Employee Confidentiality Contract Form can be downloaded from Internet but, it is necessary that the agreement should be drawn with the active participation and consultation of the lawyer as, the Confidentiality Contract deals with the business secrets and intellectual property rights. The lawyers are also proficient in this field and can bind employees more securely with clauses and conditions of the Form