I wish to share a few things with respect to NDAs. I have come across almost all our clients enforcing NDAs in their contracts/PO/WOs, more so by all MNS companies. After all, we have no employer-employee relationships. Simply, our clients share with us some of their copies of documents relating to purchases, imports, and exports we handle for them for a brief period. We won't get any WOs without this clause being signed by us; such is the criteria everyone tries to take care of by imposing strict clauses for obvious reasons. There's nothing left for the employees concerned to accept or not accept. If accepted and signed on the dotted lines, they can be appointed; otherwise, they have no choice.
Let's come to the very crux of the issue - Is a non-disclosure agreement legally binding? Non-disclosure agreements (NDAs) are legally binding agreements to keep information confidential. They go by other names in certain contexts, including confidentiality agreements (CAs), confidential disclosure agreements (CDAs), and proprietary information agreements (PIAs).
As far as employment is concerned, the clauses vary from employer to employer. Some impose a condition to the effect that those leaving the job shall not join companies of the same business or competitors, use the know-how gained during the tenure they had with this company, and so on for at least one year or so. Many of the startups springing up nowadays can be bracketed in this category.
Imposing NDAs can only be justified to safeguard their business interests. In the attachments, we'll have further insight into this subject for better understanding.
From India, Bangalore
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1158Let's come to the very crux of the issue - Is a non-disclosure agreement legally binding? Non-disclosure agreements (NDAs) are legally binding agreements to keep information confidential. They go by other names in certain contexts, including confidentiality agreements (CAs), confidential disclosure agreements (CDAs), and proprietary information agreements (PIAs).
As far as employment is concerned, the clauses vary from employer to employer. Some impose a condition to the effect that those leaving the job shall not join companies of the same business or competitors, use the know-how gained during the tenure they had with this company, and so on for at least one year or so. Many of the startups springing up nowadays can be bracketed in this category.
Imposing NDAs can only be justified to safeguard their business interests. In the attachments, we'll have further insight into this subject for better understanding.
From India, Bangalore
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Mr. Kumar,
Are you saying an NDA providing for a deduction of salary for leaving without notice (not any action concerning misuse or disclosure of confidential data) is valid as a part of the NDA or that it will be enforceable as such?
Nothing in that post was about the breach of data confidentiality.
From India, Mumbai
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Are you saying an NDA providing for a deduction of salary for leaving without notice (not any action concerning misuse or disclosure of confidential data) is valid as a part of the NDA or that it will be enforceable as such?
Nothing in that post was about the breach of data confidentiality.
From India, Mumbai
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Dear Saswata,
As you are aware, an NDA is a signed document, and employment is a 'contract'. Therefore, any 'breach' has to be dealt with within the ambit of the 'Law of Contract'. Recovery from the salary is a different aspect. Yes, there cannot be any deduction that is not permitted under the PoW Act, etc. But the remedy to the employer under the NDA is to be spelled out in the agreement itself, which has been agreed upon and signed by the employee. How to proceed is between the employer and employee. They can seek the verdict of the designated court or even go before arbitration first.
From India, Bangalore
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As you are aware, an NDA is a signed document, and employment is a 'contract'. Therefore, any 'breach' has to be dealt with within the ambit of the 'Law of Contract'. Recovery from the salary is a different aspect. Yes, there cannot be any deduction that is not permitted under the PoW Act, etc. But the remedy to the employer under the NDA is to be spelled out in the agreement itself, which has been agreed upon and signed by the employee. How to proceed is between the employer and employee. They can seek the verdict of the designated court or even go before arbitration first.
From India, Bangalore
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BOND AGREEMENT and bond demand_compress ed.pdf
Training Agreement - Bond - Draft.doc
Gauri26031987
Agreed.