What is the Non-Disclosure Policy?

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A non-Disclosure policy or confidentiality agreement is a contract that binds an employee and employer throughout the employment and even after a few months, as stated under the agreement. As the name outlines, the Non-Disclosure policy binds an employee not to share, publish, disclose or in any way reveal the confidential information of the company, its business data, financial records, personal information of employees, and client’s with the third party anywhere globally. This third party could be your competitor.

An employee who breaches the agreement in any way could be responsible for a penalty about not greater than but up to the termination of his/her employment at the immediate point of knowing when a breach is done. Almost every small or big company has its own set of confidential information, which it doesn’t want to share with its competitors in any way. Thus, you must know how to secure various business-sensitive information. To get you there, our Non-Disclosure Policy Template will assist you in the formulation of such a policy.

In this policy, you will get:

  • What constituents to consider during the designing of such a policy.
  • Readymade sample policy including every element to consider.
  • The purpose of the Non-disclosure Policy.
  • The meaning of the confidentiality Policy.
  • The sensitive information that must be kept secure from the competitors.
  • The allowed reasons for requesting to use the information.
  • The charges applied when someone breaches the law.
  • How to define the group of people to whom the policy is applicable.
  • The time interval during which the policy applies to the employees.

Non-Disclosure Policy Sample

The Non-Disclosure Policy/Agreement or Confidential Policy is a legal binding between a company and its employee signed at the recruitment time to ensure no sensitive information regarding the company should be leaked/shared outside the company boundaries.


The agreement states that no information of the company specified in the contract should be shared, published, or used otherwise with the person, not a part of the company.

‘Name of the company’ firmly adheres that any employee is not liable to share the information regarding our employees and their personal data, our clients, business data, financial condition, and company meetings during his/her course of employment.

An employee must undertake the responsibility to not to discuss any names and descriptions to the third party.

One must not share any of this information with a third party anywhere in the world without any written consent or are under any legal duty to disclose.


The Non-Disclosure Agreement applies to every newly recruited employee regardless of their position in the office during the course of their employment.

Confidentiality of outside businesses

The employees of ‘Name of the company’ should not disclose any confidential information of other companies or past employees with the ‘Name of the company’.

Non-Disclosure of Intellectual Property

No employee is permitted to share any intellectual property created by any employee during employment with ‘Name of the company’ even after the employee ceases to work with ‘Name of the company’.


The confidential information stated above under ‘Name of the company’ must not be used to associate with the third party to compete or gain an unfair advantage in any way outside the ‘Name of the company’.

Return of information

Every employee is responsible for returning the assets like mobile phones, laptops, charts, models, source codes, and other belongings immediately that reflect the confidentiality of ‘Name of the company’, during severance.


The agreement of confidentiality does not apply to confidential information:

  • Possessed by the person having rights of the same without any written application to do so.
  • Currently or afterward becomes public, not by the breach of the agreement.
  • When the receiving party promptly returns the information in the recorded, tangible documents, prints, or other forms to the other party on the business purpose’s termination or with any written application.


The employee of ‘Name of the company’ is responsible for bearing the violation of any of the statements stated in this policy by paying for the damages that happened. The breach of this policy might cause but not more than the employee’s termination with ‘Name of the company’.

Binding of the Agreement

Under any circumstances, if the employee breaches the agreement, the undersigned accepts that it may be served without affecting the charges of the breach. This agreement shall be signed upon and for the benefits of the parties, successors, and their personal representatives. In witness of whom, each party under this agreement has caused it to be executed at ‘Name of the company’.


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