Confidentiality agreement is an agreement between an employer and employee in which the employee may not disclose branded, patented or confidential information. Many companies have protected information that, if leaked, could be devastating for the brand or welfare of the organization - a confidentiality agreement serves as legal protection from this.
What happens if you breach a Confidentiality Agreement?
If you happen to breach a confidentiality agreement there can be a penalty that can be laid for violation. The level of the penance depends on the terms of the conditions of that agreement. You might be asked to pay for the violation caused in the form of money, etc. Sometimes the violating party may be required to surrender any endowments received as per the agreement.
Who prepares a Confidentiality Agreement?
The employer prepares the confidentiality agreement based on guidelines received as per the legal department of the firm.
Why do companies have a Confidentiality Agreement?
Confidentiality agreements are fundamental in protecting any confidential information from being made available to ineligible parties. It protects certain key ideas and thoughts of the firm that make them stand out and gives them a competitive advantage.
How long do Confidentiality Agreements last for?
Most often the confidentiality agreements last for about 1 to 5 years. However, this also depends on the employer policies and market conditions at the time.
What is the difference between NDA and Confidentiality Agreement?
Both NDA and confidentiality agreements are critical and important legal contracts. An NDA deals with how companies will handle someone else’s confidential information while a confidentiality agreement is more or less the same as an NDA except the fact that it requires less details than NDA.
