Latest in Employment Law>Articles>Should Employers Include Non-Disclosure Clauses in Their Employee’s Employment Contracts?
Should Employers Include Non-Disclosure Clauses in Their Employee’s Employment Contracts?
Published on: 11/03/2024
Issues Covered: Contracts of Employment
Article Authors The main content of this article was provided by the following authors.
Chris Fullerton
Chris Fullerton

Should Employers Include Non-Disclosure Clauses in Their Employee’s Employment Contracts?

The topic of non-disclosure agreements (NDA) and confidentiality clauses within the context of employment has attracted a surge in media attention in recent years, particularly following the rise of the #metoo campaign relating to the use of NDAs to cover up sexual harassment issues in some workplaces. A lawful NDA is a legally enforceable agreement in which both parties agree to keep certain information confidential. An NDA will be deemed unlawful and non-enforceable as a result if it has been used to cover up other unlawful activities.

Despite some negative press on the issue, the vast majority of NDAs and similar provisions included in employment agreements are genuine efforts by employers to protect their business and avoid litigation.

Under an employee non-disclosure agreement, both parties are bound by confidentiality provisions, such as preventing the employee from disclosing certain specified information relating to the conduct of the employer or the termination of the employment contract. Employers may wish to include NDAs and confidentiality provisions in their employees' employment contracts in order to protect trade and business secrets, client details and other information which an employee may come across during their time of employment.

Although not yet in force, employers should stay up-to-date on any new legislation introduced on this topic following the UK government's announcement in 2019 that they will introduce new legislation to govern the use and misuse of NDAs within an employment context.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 11/03/2024