I wish to share few things w.r.t.to NDAs.
I have come across almost all our clients enforcing NDAs in their contracts/PO/WOs more so by all MNS cos. After all we have no employer-employee relationships. Simply our clients share with us some of their copies of docs relating to purchases & imports/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 every one try to take care of by imposing strict clauses for obvious reasons. There's nothing left for the employees concerned to accept or not to accept. If accepted & signed on 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).
In so far as the employment is concerned the clauses vary from employer to employer. Some imposes a condition to the effect that those leaving the job shall not join co's of same business or of competitors, use the know how gained during the tenure they had with this co., and so on for atleast for one year or so. And many of the start ups springing up now a days can be bracketed in this category.
As such, imposing NDAs can only be justified to safe guard their business interests.
In the attachments we'll have further insight into this subject for better understanding.
From India, Bangalore
1077I have come across almost all our clients enforcing NDAs in their contracts/PO/WOs more so by all MNS cos. After all we have no employer-employee relationships. Simply our clients share with us some of their copies of docs relating to purchases & imports/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 every one try to take care of by imposing strict clauses for obvious reasons. There's nothing left for the employees concerned to accept or not to accept. If accepted & signed on 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).
In so far as the employment is concerned the clauses vary from employer to employer. Some imposes a condition to the effect that those leaving the job shall not join co's of same business or of competitors, use the know how gained during the tenure they had with this co., and so on for atleast for one year or so. And many of the start ups springing up now a days can be bracketed in this category.
As such, imposing NDAs can only be justified to safe guard their business interests.
In the attachments we'll have further insight into this subject for better understanding.
From India, Bangalore
Mr. Kumar,
Are you saying an NDA prividing deduction of salary for leaving without notice (not any action concerning misuse or disclosure of confidential data) is valid as a part of NDA or that it will be enforceable as such?
Nothing in that post was about breach of data confidentiality
From India, Mumbai
Are you saying an NDA prividing deduction of salary for leaving without notice (not any action concerning misuse or disclosure of confidential data) is valid as a part of NDA or that it will be enforceable as such?
Nothing in that post was about breach of data confidentiality
From India, Mumbai
Dear Saswata,
As you are aware NDA is a signed document. And the employment is a 'contract'. Therefore any 'breach' has to be dealt with within the ambit of 'Law of Contract'. Recovery from the salary is a different aspect. Yes, there cannot be any deduction, which is not permitted under the PoW Act etc. But remedy to the employer under the NDA is to be spelt out in the agreement itself which has been agreed and signed by the employee. Then how to go about it is between employer & employee. Let them seek the verdict of the designated court or even can go before the arbitration first.
From India, Bangalore
As you are aware NDA is a signed document. And the employment is a 'contract'. Therefore any 'breach' has to be dealt with within the ambit of 'Law of Contract'. Recovery from the salary is a different aspect. Yes, there cannot be any deduction, which is not permitted under the PoW Act etc. But remedy to the employer under the NDA is to be spelt out in the agreement itself which has been agreed and signed by the employee. Then how to go about it is between employer & employee. Let them seek the verdict of the designated court or even can go before the arbitration first.
From India, Bangalore
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