If you own or run a business, you may need to have your employees sign confidentiality agreements. These agreements can protect your business's private information that should not be shared with competitors or the public.
What Is a Confidentiality Agreement?
A confidentiality agreement is a legal contract that requires the person who signs it to keep certain information to themselves. The agreement explains which information is confidential, why it is private, who it cannot be shared with, and what the consequences are if the person who signs the agreement shares the information.
Why Do Businesses Have Employees Sign Confidentiality Agreements?
When businesses have their employees sign confidentiality agreements, it is usually because the businesses use information that they do not want their competitors or the public to know. Some industries in particular may require these agreements, such as media, public relations, banking and finance, or technology.
Do Your Employees Need to Sign a Confidentiality Agreement?
If you are a business owner, you may not be sure whether employees should sign these agreements. Not every company or every person needs to sign an agreement – in fact overprotection could dilute the value of having certain employees who do work with confidential information sign them. But if you need to keep certain information from leaking out – whether due to current or former employees sharing it – then you may need your employees to sign these agreements.
Which Information Is Confidential?
Depending on your line of business, you may not want to share different kinds of information. For example, employers may want to protect:
- Customer names and contact information
- Supplier and vendor information
- Sales numbers
- Financial data
- Product development information
Consider which information your business needs kept private, and talk to a lawyer about whether you need a confidentiality agreement prepared.
To find out more about confidentiality agreements visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.
The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website. This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.
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