Confidentiality Agreement

Meaning & Definition

An Confidentiality Agreement is an agreement designed to maintain the confidentiality of an organization’s sensitive business data by requiring that employees, contractors and third party vendors protect this information from being disclosed to unauthorized parties. This agreement also sets out the definition of confidential information as well as the obligations and restrictions that relate to the use or sharing of such confidential information, along with the penalties for misuse of the confidential information that you provide to others.

Significance of Confidentiality Agreement

• Protect sensitive business and employee information.
• Minimize the occurrence of data leaks or misuse.
• Build trust between the employer and employee.
• Protect intellectual property and trade secret information.
• Promote compliance with laws governing the protection of data.

Governance & Policy Alignment

• Subject to internal legal, HR and information security policies.
• Normally signed at onboarding or contract signing.
• Obligations should clearly set out the parameters of the agreement including duration and responsibility.
• Allows for the development of organisational data protection and risk management strategies.