As a professional, you may encounter a situation where you have access to sensitive information that could harm a company if it were made public. In this case, employers use a non-disclosure and non-compete agreement to ensure that their employees keep their information confidential.

What is a non-disclosure and non-compete agreement?

A non-disclosure and non-compete agreement (NDNCA) is a legal contract that an employer and employee sign to protect sensitive information belonging to the employer. The agreement serves as a contract between the parties and outlines the terms and conditions of the relationship.

The agreement restricts the employee from disclosing any information relating to the employer`s business to third parties. Besides, it also restricts the employee from working with any competitor of the employer, either during employment or after it has ended.

The benefits of signing an NDNCA

Employers use NDNCA to protect their business secrets, such as trade secrets, strategic planning, and customer lists. When you sign the agreement, you`re promising to keep the information confidential and not use it for personal gain.

In addition, the NDNCA ensures that employees don`t use their knowledge of the employer`s business to start their company. By restricting employees from working with competitors, the employer can protect their business from unfair competition.

What should be included in the NDNCA?

If you`re an employer drafting an NDNCA, you should ensure that it not only protects your business interests but also complies with the law. The following are the essential clauses that should be included in the agreement:

1. Confidentiality Clause

The confidentiality clause should define the confidential information that the employee cannot disclose to third parties. It should also specify how the employee should store and protect the confidential information.

2. Non-compete Clause

The non-compete clause should define the length of time and geographic area the employee cannot work with a competitor after leaving the employer`s employment.

3. Exclusions Clause

The exclusions clause should outline any circumstances under which the employee can disclose confidential information. This may include sharing the information with the employer`s legal or accounting team.

Conclusion

In conclusion, a non-disclosure and non-compete agreement is a legal contract used by employers to protect their business interests. By signing the agreement, employees agree not to disclose confidential information and to restrict them from working with competitors. If you`re an employer, it`s essential to draft the agreement with the help of a legal professional to ensure that it complies with the law and protects your business interests.