Gag Clause

What is Gag Clause ?

‘Gag Clause’ refers to any contract based stipend that restricts an employee from disclosing sensitive information about the company, or its operations.
Gag clauses are similar to whistleblowing policies since they both fulfil the same purpose of restricting the employees from sharing sensitive information about the company with anyone.
However, it is different from a Non-Disclosure Agreement. An NDA would stop the employee from sharing sensitive information with others. However, a gag clause will also restrict an employee from sharing the company’s wrongdoings also with others.
Gag clauses are meant to safeguard the public reputation of a company. It is included in the contract agreements as the company would not want others to know about any malpractices that might be happening within the company.

More HR Terms

Employee-driven Idea System

What is Employee-driven Idea System?   An ‘Employee-driven Idea System’ is a system where the employees are encouraged and incentivised to come up with ideas

HR Department

What is HR Department ? ‘HR Department’ refers to the section in a company that is concerned with the welfare of the employees of the

Exit Interview

What is Exit Interview?   ‘Exit Interview’ refers to the interview conducted by a company when an employee leaves the organization. It helps the company

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’