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A confidentiality agreement is used primarily by businesses when they hire employees. The purpose of a confidentiality agreement is to ensure that employees who work for the company are bound by the agreement to not share information about the company, its processes, or its clients to anyone else. Confidentiality agreements are sometimes governed by state law and must include a reasonable time frame so that the employee is not unduly burdened if they choose to leave the company.
A confidentiality agreement is an agreement signed by someone who is agreeing to keep what they learn about a process or a business in confidence. This is a key document for many businesses in order to protect their business secrets and client information.
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Alternate Names:
A confidentiality agreement is used to protect specific business and client information from being exposed by employees or former employees.
You should use a confidentiality agreement is you plan to hire employees or independent contractors to help you with your business. This will help protect your business processes and client information in the event that the employee leaves or when the project with the contractor ends.
Anyone who plans to open or currently runs a business should use a confidentiality agreement.
Can a confidentiality agreement list "forever" as the amount of time that the person signing it is bound to it?
No. In fact, many states list a limit for how many years after the employee leaves that they are required to keep that information confidential. Make sure that you consult an attorney to know the appropriate maximum amount of time that you can list in the confidentiality agreement.