A Confidentiality Agreement is also known as:
- Non-Disclosure Agreement or NDA
- Confidentiality Statement
- Privacy Agreement
What is a Confidentiality Agreement?
A Confidentiality Agreement is a legal document that protects
sensitive information from being distributed or revealed by someone.
This type of agreement is commonly used to protect a business's
intellectual property or details about its operations.
Many organizations are obliged by privacy laws to securely
keep the personal information they collect, and to use or
disclose that information only as permitted by law. A
Confidentiality Agreement can help an organization fulfil
those legal obligations when dealing with third parties.
A Confidentiality Agreement can also be used by anyone who
wants a contractor, consultant, or health practitioner to
keep their personal information private.
When should I use a Confidentiality Agreement?
Here are some common situations where you could use a Confidentiality Agreement:
Job Interviews: When interviewing candidates to work for your business,
it may be necessary to share sensitive information about your operations.
You may wish to have candidates sign a Confidentiality Agreement in order
to protect your company's intellectual property.
Employee Regulations: Your workplace may need to comply with relevant
privacy laws governing the collection and use of personal information.
Using Confidentiality Agreements with employees can help to reinforce
the required actions.
Selling a Business: A potential buyer of your business will
want to know about details like operating expenses, customer databases,
new products currently in development, and manufacturing processes before
agreeing to purchase it. A privacy agreement would work to maintain the
integrity of your company's trade secrets and ensure compliance with privacy laws.
Dealing with Suppliers: Supplier order information can reveal
details about your business that you want to keep private, such as upcoming
product releases, or changes to existing product lines. By getting your
suppliers to sign a Confidentiality Agreement, you can ensure that your
order details are kept private.
Contractors and Consultants: A contractor or a consultant doing
work for you may need to know sensitive information like alarm codes for
your home, or when you will be away on business. You could use a privacy
agreement in this instance to help maintain your personal security.
Product Focus Groups: Businesses that test upcoming products
with focus groups of consumers don't want news of the new products to be
leaked early, which can throw off marketing plans and give vital intel
to competitors. You could use a Confidentiality Agreement with each focus
group participant to help protect your business's intellectual property.
Therapists and Group Therapy: It is a good idea for therapists to
offer privacy agreements to their clients, especially when conducting
group therapy sessions where personal details are revealed and discussed.
A Confidentiality Agreement can reduce a client's anxiety over speaking
freely as part of their treatment.