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Nondisclosure agreement points should be clear

Going through the hiring process for a new job sometimes entails having to sign a variety of papers. Some of these papers might be contracts or agreements. It is vital that these documents protect not only the employer but also the employee. One of the possible forms that might be required is the nondisclosure agreement.

A nondisclosure agreement is a contract between the employer and employee that protects the trade secrets and other specified company information throughout the course of the employee's employment and for a specific time afterward. This protects the employee by giving him or her a document that outlines exactly what information must not be disclosed.

The contract protects the employer because it provides a legal basis to ensure that confidential information is kept out of competitors' hands. Of course, the protection that the contract offers is only as good as the terms of the contract. With this in mind, many employers opt to use comprehensive nondisclosure agreements.

A nondisclosure agreement should contain several points. It should contain the length of time for which the agreement is valid. It should also contain a definition of what information is considered confidential and what information is excluded from that definition. The agreement should also have information about the employee's obligations and duties with regard to the confidential information.

Since a nondisclosure agreement is a legal document, both the employer and employee should understand the terms. Reading over the agreement is vital before signing it. If there are any points that you don't understand or that need to be clarified, have that taken care of before signing the contract.

Source: FindLaw, "A Nondisclosure Agreement," accessed Aug. 06, 2015

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