Introduction

Confidentiality refers to information within the organisation that needs to be treated with

confidentiality and kept secret. Confidentiality has many aspects that are covered extensively in this module. One aspect that is often neglected is the fact that small and medium-sized enterprises (SMEs) are not aware of the importance of keeping the intellectual property and intangible assets secret. The protection of this information is usually not regulated within the administrative systems.

Most organisations have a confidentiality agreement that employees sign together with their contracts. A confidentiality agreement is a written legal contract between an employer and an employee. The goal of this confidentiality agreement is to protect the privacy of clients and the privacy of the company. It ensures that confidential information stays within the organisation and is not shared externally.

The confidentiality agreement sets binding terms and conditions that prohibit the employee from disclosing company confidential information. This confidentiality agreement is effective for the period of the employee’s employment and also for a period of time after employment has been terminated.

Employers benefit from confidentiality agreements because they keep these parties from sharing proprietary knowledge, trade secrets, client or product information, strategic plans, and other information that is confidential to the company with competitors.

Confidentiality agreements state that the signer cannot disclose or in any way profit from company confidential information supplied.

Confidentiality agreements frequently claim company ownership of anything that is developed, written, produced, or invented during or as a result of employment, contracts, services, or interviewing if it is in any way related to the scope of the company's business.

A confidentiality agreement should offer a clause that allows an employer to sign off on or give permission to the signer to use company proprietary information.

This confidentiality clause should indicate specific aspects:

• What kind of information is referred to, in other words to what information does the confidentiality clause refer specifically.
• Specific obligations and restrictions are imposed on the employee, according to their job profile and management status.
• What the consequences will be for a breach of that confidentiality.
• The practical implications need to be considered after the termination of employment.

Confidentiality agreements can also be negotiated in other circumstances:

• Management and senior-level job interviews during which company confidential information is discussed.
• Consultant or contractor contract and assignment discussions and products resulting from contractual work,
• Vendor discussions that involve products, parts, and other proprietary information sharing.
• Situations involving stock or company purchase, due diligence, or any interaction during which confidential information is shared.