Confidentiality agreements

Confidentiality agreements are usually entered into by employees with their employers following some form of dismissal, in which an employee agrees not to pursue any claims against the employer in return for a financial settlement and quite often a reference. Confidentiality agreements can generally be entered into by two or more parties and will set out each party’s rights and obligations. A confidentiality agreement can also be a supplementary agreement to another contract or agreement and is also known as a Non-Disclosure Agreement.

Most confidentiality agreements present the same information and are similarly structured. There are two types of confidentiality agreements. A mutual confidentiality agreement would be used if you want all parties bound by confidentiality. Unilateral confidentiality agreements are used if only the receiving party must maintain secrecy. Regardless of the type of agreement both parties should ensure they are happy with the terms it contains as they are bound by them. Precisely specifying the information that needs to be protected and the treatment of the information are probably the most important clauses, and as with all agreements a balance must be struck between legal protection and the ease of getting the agreement signed by the other party. Naturally, the more one-sided an agreement is the more difficulty there will be to get the other side to sign.

Confidentiality agreements are crucial in protecting not only the name and reputation of a business but also its intellectual property, as employees will often be party to trade secrets and other classified information. Confidentiality agreements are legally binding documents and therefore legal advice should be sought before drafting or entering into one.

If you would like to obtain legal advice on confidentiality agreements then Contact Law can put you in touch with a local contracts solicitor free of charge. So, if you have any questions or would like our help in finding local contracts solicitors please call us at 0800 1777 162 or complete the web-form above.