Many businesses require employees to sign a confidentiality agreement. Those companies have important information about the business itself, clients, other employees, and anything else related to the company that needs to remain safe. The confidentiality agreement binds the employee to respect the information and privacy of those involved.
Drafting up a confidentiality agreement should take time to ensure that all avenues of the company are covered. If there is any part of your business and information surrounding your business that could be detrimental if put in the wrong hands, you’ll want to cover it in the agreement.
Because of the importance of a confidentiality agreement, Corporate Business Solutions has four tips to help you draft one for your company.
Identify Parties Involved
In your confidentiality agreement, it should be made clear who the parties are that are involved. When stating the parties, you are referring to the company (or yourself) and the person who is signing the agreement. Have a spot for the person to sign his or her name, along with a statement that states the person would be referred to as the recipient.
The Confidential Information
Have a section dedicated to the confidential information. First, determine what confidential means in the agreement. You’ll want to cover all grounds, including anything written or verbally spoken.
The tricky part of identifying what is confidential is that for you drafting the agreement, you want to keep things more general as to cover as much information as you need. The purpose is to avoid any loopholes that could end you up in trouble. However, for the person signing the agreement, will likely want things specifically lined out so to know what is and isn’t covered under the confidentiality agreement.
Is There a Timeframe?
The timeline of a confidentiality agreement is another tricky aspect. If there is no timeline stated, it’s difficult to determine how long the recipient must follow the agreement. Depending on the type of business you have and what the agreement is covering, it’s a good idea to specify a timeline. Is it for as long as the person is working there, or does the agreement stay true for a few years even after the employee is no longer with the company?
If you’re creating a confidentiality agreement for a trade or service that is specific to your company, you can have the timeline infinite. For example, if your business has a particular technique that you provide clients, your employees would sign a confidentiality agreement that states the employee cannot provide that technique to another company or for their own benefit.
Add Any Exclusions
Many confidentiality agreements will include exclusions. These exclusions would when the agreement doesn’t uphold, and the confidential agreement can be shared. If you know of any circumstances in which exclusion is valid, it’s important to note it in the agreement.
It’s important that the confidentiality agreement covers all aspects of your business, information and anything else that is deemed necessary. Without an agreement, there is nothing stopping employees from sharing what they know through work. Signing these agreements is a way to uphold the obligation of the employee to keep all information safe and secure.