A non-disclosure policy is a legal document that outlines the confidentiality obligations between two or more parties. It specifies a list of terms and conditions that both parties agree to in order to uphold their commitment to maintaining confidentiality.
Types of Non-Disclosure Policies
The following are the various types of non-disclosure policies:
Unilateral Non-Disclosure Agreements (NDAs)
A unilateral NDA is a one-way agreement where only one party discloses confidential information. This type of agreement is primarily used with employees, contractors, and external entities.
Mutual Non-Disclosure Agreements (MDAs)
A mutual NDA is a bilateral agreement in which both parties share their confidential information. This type is commonly used during negotiations, collaborations, and potential partnerships.
Multilateral Non-Disclosure Agreements
A multilateral NDA involves three or more parties, where all parties share their confidential information. This type is typically used in complex transactions, joint ventures, or consortiums.
Non-Disclosure Policy Sample
The Non-Disclosure Policy Agreement or Confidential Policy is a legal binding between a company and its employee signed at the recruitment time to ensure no sensitive information regarding the company should be leaked/shared outside the company boundaries.
Purpose
The agreement stipulates that no information specified in the contract shall be shared, published, or otherwise disclosed to individuals not affiliated with the company. [Name of the Company] firmly maintains that employees are prohibited from sharing information regarding other employees and their personal data, clients, business data, financial status, and company meetings during their employment.Employees must take responsibility for not discussing any names or descriptions with third parties. Furthermore, this information must not be shared with any third party anywhere in the world without prior written consent or unless there is a legal obligation to disclose it.
Scope
The Non-Disclosure Agreement applies to every newly recruited employee, regardless of their position in the office during the course of their employment.
Confidentiality of outside businesses
The employees of ‘Name of the company’ should not disclose any confidential information of other companies or past employees with the ‘Name of the company’.
Non-Disclosure of Intellectual Property
No employee is permitted to share any intellectual property created during their employment with [Name of the Company], even after their employment has ended.
Non-Competition
The confidential information outlined above under [Name of the Company] must not be used to engage with any third party in a manner that competes with or gains an unfair advantage over [Name of the Company] in any capacity.
Return of information
Every employee is responsible for returning all assets, including mobile phones, laptops, charts, models, source codes, and any other items that reflect the confidentiality of [Name of the Company], immediately upon severance.
Exceptions
The agreement of confidentiality does not apply to confidential information: Possessed by the person having rights of the same without any written application to do so. Currently or afterward becomes public, not by the breach of the agreement. When the receiving party promptly returns the information in the recorded, tangible documents, prints, or other forms to the other party on the business purpose’s termination or with any written application.
Disclaimer:
This policy is meant to provide general guidelines and should be used as a reference. This is not a legal document. Easy HR will not assume any legal liability that may arise from the use of this policy.