FREE 10+ Sample Confidentiality Statement Templates in PDF | MS Word

A confidentiality agreement or a confidentiality statement is a written contract between an employer and an employee. A confidentiality agreement is a legally binding document that allows the employer to outline terms and conditions that prohibit an employee from disclosing confidential and proprietary information.You may also see medical confidentiality agreement

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A confidentiality agreement is usually in effect for one to two years and is usually given after the termination of an employee. A confidentiality agreement helps to protect and secure a company’s interests by making sure that a former employee does not work for a competitor or divulge details pertaining to the company’s secret of trade.You may also see contractor confidentiality agreements

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Business involves a lot of tough competition, and when your company’s success depends on trade secrets such as an invention or idea, having a confidentiality agreement helps you keep that information out of the wrong hands. A confidentiality agreement can also be dubbed as a nondisclosure agreement (NDA) and is used in the following circumstances:

1. in job interviews that involve confidential information to be discussed;

2. discussions or negotiations made between a company and a consultant or a contractor wherein product issues are involved;You may also see staff confidentiality agreements

3. discussions or negotiations with a vendor that involves topics pertaining to the company’s products, parts, or other proprietary information sharing;

4. situations that involves stock purchase; and

5. any situation or interaction that involves the discussion of confidential or sensitive information to competitors.You may also see HR confidentiality agreements

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There is generally no fixed template for a confidentiality agreement; however, below is list of rules to follow to guide you through the process:

 

1. Proprietary Information

The information that is to be kept private has to be clearly and properly defined in a confidentiality agreement. However, the actual information is not written in the contract. For example, in a pharmaceutical company, you might want to keep formulas a secret from competitors. You do not need to indicate the formula in the confidentiality agreement, you just simply need to state that formulas or recipes are not to be shared with others.You may also see real estate confidentiality agreements

2. Length of the Contract

A confidentiality agreement usually stipulates a period of one to two years before the prohibition is lifted. This factor, however, will usually depend on the type of information that is at risk for disclosure.You may also see personal confidentiality agreements

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3. Mediation Clauses

A confidentiality agreement should include a proposal to help resolve occurrences of a breach of contract. Penalties for punitive damages may be imposed if a breach of contract happens. Providing internal legal remedies saves the company from a bigger costs for pursuing legal action.You may also see staff confidentiality agreements

4. Reasonable Terms

A confidentiality agreement’s proprietary information and length of contract has to be reasonable for it to be acknowledged by the court. For example, you cannot keep someone from divulging illegal company processes, especially if it is used for judicial processes.You may also see data confidentiality agreements

5. Noncompete Clause

A noncompete clause is a paragraph incorporated within your confidentiality agreement that prohibits an employee from using your trade secrets to start up his own similar business, causing him to be in competition with you.You may also see volunteer confidentiality agreements

Some confidentiality agreements prohibit an employee from working in the same industry when departing from an employer for at least two to three years. Other companies extend this ban to suppliers and vendors.You may also see employee confidentiality agreements

You can also download templates of our confidentiality statements by viewing our sample statements. We also offer varied forms of statement templates such as our sample thesis statements and sample research statements.