What is Confidentiality Agreement ?
A ‘Confidentiality Agreement’ is a contract between the employer and the employee which restricts the employee from sharing any kind of sensitive information about the company to anyone outside the company.
It is also called a ‘Non-disclosure Agreement (NDA)’ or Proprietary Information Agreement (PIA)’ in some companies. However, their function is the same: to protect the internal company secrets to safeguard the welfare of the organization.
Although these agreements are signed when a new employee joins the organization, some employers go a step further by making the contract valid for a lifetime so that the employee is required to maintain secrecy even after termination.