Select Alternative 2 if the agreement is with a current employee. To ensure that the agreement is legally binding, the employee should receive some value on the normal salary and benefits for signing – for example. B, cash, extra leave, stock options or other benefits. Include the compensation to be paid. It does not need to be substantial. For example, several additional days off per year should do so. How long does the duty of confidentiality last? The standard agreement offers three alternative approaches: an indeterminate delay that ends when information is no longer a trade secret; A fixed period of time or a combination of the two. The integration clause opens the door to oral or written commitments. Do not sign an agreement if something is missing, and do not accept the assurance that the other party will correct it later.
Confidentiality agreements are used for both preventive and remedial purposes: the agreements remind workers of the need to protect certain information and the possible consequences if this confidential information falls into the wrong hands. In more serious cases, such as Z.B. Disclosure of an employee`s fault, the company may claim exemplary (punitive) damages and it is also possible to provide for the recovery of legal fees. The most difficult part is whether other individuals or companies can also be parties to the agreement. Does the recipient expect confidential information to be shared with a related or related company? To a partner? To an agent? In this case, the NDA should also cover these third parties. California Law Establishes Trade Secret Ownership. California is unique in that its laws explicitly state that the employer has trade secrets created by a worker. (Cal. Code of Labor art. 2860).
However, an employer in California would not have any trade secrets created at the time of an employee without using equipment. Although the law does not impose a contract, it is a good idea to emphasize your position in California using a written agreement. Select Option 1 if a new employee signs the agreement. As a general rule, a non-compete agreement is signed at the same time as a confidentiality agreement that prevents the worker from working for competitors. Non-competition rules are governed by each state. That does not prevent anyone from saying that an agreement has been reached. The period is often a matter of negotiation. You, as a revealing party, generally want an open period without borders; recipients want a short period of time. With respect to personnel and subcontracts, the term is often unlimited or ends only when trade secrecy is made public.
Five years is a common term in confidentiality agreements that involve trade and product negotiations, although many companies insist on two or three years.