You are reading this message because your browser either does not support JavaScript or has it disabled. Please enable JavaScript and Cookies in order to use this site.
If your browser is not JavaScript capable, you can obtain either Firefox or Microsoft Internet Explorer. Under Linux, any browser using the latest Mozilla engine should work.
Whenever sensitive information needs to be shared between two parties it is a good idea to use a confidentiality or non-disclosure agreement. This agreement will help formalise the relationship and provide legal remedies if the confidential information is released.
CONFIDENTIALITY AGREEMENT
THIS CONFIDENTIALITY AGREEMENT (the "Agreement") dated this ________ day of ________________, ________
BETWEEN:
____________________ of ________________________________________________________________________________(the "Employer")
OF THE FIRST PART
- AND -
____________________ of ________________________________________________________________________________(the "Employee")
OF THE SECOND PART
BACKGROUND:
IN CONSIDERATION OF and as a condition of the Employer employing the Employee and the Employer providing the Confidential Information to the Employee in addition to other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:
IN WITNESS WHEREOF ____________________ and ____________________ have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.
Last updated: January 7, 2025
Written by
Reviewed by
|
Fact checked by
A Confidentiality Agreement is a legal contract that protects sensitive information from unauthorised disclosure. This type of agreement is commonly used by companies to protect their intellectual property, business operations, customer information, and more.
When executed properly and all legal requirements are met, Confidentiality Agreements bind recipients of sensitive information to their obligation of non-disclosure.
Our Confidentiality Agreement template is unilateral, meaning an information provider discloses confidential information to a recipient. A mutual Confidentiality Agreement, also known as bilateral, means that both parties are disclosing and receiving confidential information. If you need mutual protection, create one document in which you are the information provider and another in which you are the receiver.
A Confidentiality Agreement is also called a:
Many different types of individuals and organisations can use Confidentiality Agreements, including:
A Confidentiality Agreement records a recipient's obligation of confidentiality. As an information provider, Confidentiality Agreements give you a cause of action if the information is disclosed or misused. Having a signed Confidentiality Agreement in place ensures all parties are aware of the obligations being created and provides evidence of the agreement should you need to rely on it.
Confidentiality Agreements provide clarity by clearly defining the confidential information. If someone is going to have access to lots of information, but only some of it is confidential, a Confidentiality Agreement defines what information is actually confidential. In addition, an agreement outlines the acceptable uses of confidential information, so there is no confusion. This is important because there is always a reason for the disclosure.
Confidentiality Agreements can protect organisations legally. Organisations in Singapore are subject to the Personal Data Protection Act 2012 (PDPA) which governs the collection, use and disclosure of personal data. Under PDPA, organisations are obliged to keep the personal information they collect secure. Confidentiality Agreements can help organisations fulfil their PDPA obligations when staff have access to users’ personal data.
A Confidentiality Agreement can be used to protect a variety of information, such as:
Certain types of information cannot be protected by a Confidentiality Agreement because they are not confidential in nature. Confidential information does not include:
The appropriate duration of a Confidentiality Agreement will depend on your circumstances. There are two options for determining the length of a Confidentiality Agreement.
First, you can specify a date for the duty of confidentiality to end. Once that date has passed, the information in the Confidentiality Agreement could be freely used or shared by the recipient. If it is anticipated that the information will not be confidential after a certain date, it is appropriate to put a time limit on the obligations of confidentiality. For example, obligations might end after a product launch, after which details of the product would be in the public sphere.
In contrast, the duty of confidentiality can last indefinitely. In an employment situation, the employee’s obligations of confidentiality are likely to be perpetual because they may have access to their employer’s trade secrets, a category of confidential information which must always be kept confidential because they are key to a company’s profitability and edge over competitors. Therefore, an employee who agreed to keep a company's trade secret may be expected to keep that secret even after they have stopped working for the company.
In a Confidentiality Agreement, a non-solicitation clause prohibits the recipient from hiring the employees and contractors of the information provider.
Suppose you hire a new employee and they sign a Confidentiality Agreement containing a non-solicitation clause. When they quit, the non-solicitation clause prevents them from leveraging insider knowledge to poach your other employees or contractors to work for them. It is important to note that a court may not uphold this clause if the time period is unreasonably long. What makes solicitation of this kind unfair is that it typically makes use of information gained while working with the employer or information owner. As time passes such information becomes less critical in soliciting a worker and must be balanced with the need for fair market competition.
In a Confidentiality Agreement, a non-competition clause prohibits the recipient from starting a business that is in direct competition with the information provider.
The law may uphold such a clause because otherwise, the new business could use insider knowledge to gain an unfair advantage over the competition. A non-competition clause also prohibits the recipient from revealing confidential information to the information provider’s competition.
It’s important to note that a non-competition clause cannot prevent someone from working for competitors.
A Confidentiality Agreement can be legally enforceable. Keep in mind that it is ultimately up to a court to decide whether or not a Confidentiality Agreement can be enforced. The Singapore courts will consider a variety of factors and use legal tests in determining whether a Confidentiality Agreement will be enforceable, including:
When a recipient of information breaks their Confidentiality Agreement and shares or misuses the information it is known as a breach of contract. The information provider’s remedies for breach of contract may include:
Sample
Confidentiality Agreement
Personalise your Confidentiality Agreement. Print or download in minutes.
Create Your Confidentiality Agreement
Note: Your initial answers are saved automatically when you preview your document.This screen can be used to save additional copies of your answers.