Employment confidentiality agreements protect a company’s legal information, and refusal to sign can lead to termination or legal action. Such agreements should be signed before employment begins, and may include a clause about previous employment information. Employees can still report illegal activities, and both parties should keep a copy of the agreement. Employers should remind workers of the need for confidentiality and mark important documents as a reminder.
Most companies handle confidential information to some degree. Whether it’s trade secrets, marketing strategies, or credit card numbers, a business has a reason and the right to protect its confidential information, as long as the information is legal. Many employers require new employees to sign an employment confidentiality agreement that guarantees that the employee will not divulge any confidential information both during and after work. Refusal to enter into an employment confidentiality agreement can be grounds for termination and even legal action in some cases.
Employment confidentiality agreements are usually signed before employment begins. This ensures that the employee knows what they are getting into and understands that the job is awarded provided they sign the agreement. Employers should be sure to give the new employee time to read the agreement and be prepared to answer any questions about the nature of confidential workplace material.
Some employment confidentiality agreements contain a clause discussing previous employment information. This is very important for both workers and employers, as it protects the integrity of both. Most companies require an employee to comply with confidentiality rules even after leaving work for a different position; if a new employer asks an employee to breach the confidentiality of another job, it is unethical and sometimes illegal. The ex-employee clause protects the employee from having to answer these questions and also protects the business from accusations of stealing trade secrets by hiring a worker from another company.
It is important to understand that signing an employment confidentiality agreement does not mean that an employee should remain silent about illegal activities. While it is not unusual for unethical companies to threaten workers with termination and lawsuits for disclosing illegal business practices to authorities, the employee will usually have legal recourse against such actions. Some regions have enacted “whistleblower” laws to protect employees who disclose illegal practices to the proper authorities.
If a confidentiality agreement is signed, both the employee and the employer should receive a copy. In general, the company keeps the document in a personnel file with other documentation related to the worker. Experts recommend that the employee also stay on top of their copy and keep it with other important documents for easy review.
It is important for employers to remind workers of the need for confidentiality. In situations where it’s not clear what information is confidential, consider marking all e-mails, memos, and other important documents as a “reminder.” This simple matter can prevent the occurrence of accidental information leaks.
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