Non-disclosure agreement: how to protect a company with it

Non-disclosure agreement: how to protect a company with it

Inside information that employees work with can negatively affect the company if such information is made public. Failure to comply with confidentiality rules is a common cause of significant financial losses for a company and complete destruction of the business. If software helps to stand against a hacker attack, only legal consolidation of responsibility saves from the human factor.

Many consider an NDA to be a useless treaty, referring to the right for publicity. However, the legislation gives companies the right to prohibit employees from disclosing information specified in the NDA, and practice proves this.

The agreement allows the personnel to be held accountable and insures the company against further information losses. Regardless of whether information is disclosed intentionally or inadvertently.

What is a correct way to draw up a contract?

The text should contain a complete list of information considered confidential. The accuracy of the wording will help avoiding ambiguity and simplify the procedure for prosecution. Also, it is necessary to set out the prohibition on the transfer of this information to third parties as well as the rights and obligations of the parties. Also, the NDA may include other provisions in accordance with civil law.

The basis of the contract is the section of liability. It is important to make an accurate language for all the details regarding the grounds for liability, the period of non-disclosure, as well as the procedure and amount of payment of fines.

The expediency of NDA is obvious. However, in order for the agreement to work effectively in practice, it must be properly drafted. Otherwise, the existence of an agreement becomes just a formality.

To draft a privacy policy and NDA, you can always come to TEAM!