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How to Create an Employee Confidentiality Agreement

An employee confidentiality agreement is an excellent way to prevent employees from disclosing their employer's confidential information and trade secrets to competition or using it for their own benefit.

This agreement uses a broad definition of "Confidential Information" and "Trade Secrets" to ensure that any and all of the Employer's proprietary information remains well protected.

The employee is required to exercise the utmost diligence and use his or her best efforts to guard and protect against unauthorized disclosure or theft of confidential information and trade secrets. If the employee learns that someone else is making unauthorized disclosures, the employee is required to notify the employer immediately. The information below explains how to quickly and easily complete your own employee confidentiality agreement using LegalNature.

Party Information

Begin by entering in the parties’ full legal names. If the employer is a business, then be sure to use the business’s legal name. You will also specify the employer’s business type.

Governing State and Arbitration

On the next step you will select which state’s laws will govern the agreement. It is common to use the state of the employer’s principal place of business or wherever the company was formed. You then have the option of including an arbitration agreement. It is usually a good idea to do so, since this can save the parties the time and expense of litigating disputes in a formal court of law. Furthermore, any decision reached through arbitration will be binding and enforceable on both parties.

Additional Terms

On the final step you will select on which date you want the employee confidentiality agreement to go into effect. This is usually the date the parties will sign it, but need not be. The last box allows you to include any additional terms and conditions you desire. You should be sure to preview the document first to see what has already been included. It is likely you won’t need to include anything extra, but if you do, this box will allow you to further customize the document according to your preferences.

Executing Your Document

After completing the document, both parties will simply sign it and keep copies. This is all that is needed to make your document legal and enforceable.