Sometimes organizations have proprietary or confidential information that, if shared with the competition, may deprive the company of its competitive advantage. An employee confidentiality agreement can be used to legally protect this information from unwanted disclosure. The Ontario Court of Appeal considered the issue in Holland v. Hostopia Inc. and decided that there was no new thought in giving an employee the opportunity to keep his job and that he did not support the signing of another contract. On the other hand, it is a new idea for a worker not to be dismissed if he could have been legally dismissed. You can customize your employee confidentiality agreement in accordance with your specific requirements. In general, an effective legal document of this type would be used to protect any of the following information: In addition, regularly reminding employees of their obligations under the confidentiality agreement is a proven method. This can be a good topic to cover during annual staff meetings. When confidential or proprietary information is distributed to employees, it must be clearly identified as such, so that there is no question or dispute about it thereafter. The agreement could also set a period during which the company would act if the employee violated the agreement and divided protected information. Select Alternative 2 if the agreement is with a current employee.
To ensure that the agreement is legally binding, the employee should receive some value on the normal salary and benefits for signing – for example. B, cash, extra leave, stock options or other benefits. Include the compensation to be paid. It does not need to be substantial. For example, several additional days off per year should do so. The terms “confidentiality agreement” and “confidentiality agreement” (sometimes abbreviated as NOA) are in fact often used interchangeably. Their existing employees are often covered by this form of agreement, but new employees or someone in the application process who might have to see proprietary information could also be covered. Some organizations use confidentiality agreements to protect themselves when hiring candidates at the higher level. This next information is important for HR professionals.