Whether you’re an employer looking to protect your ideas from leaking to the industry or an employee asked to sign a non-disclosure agreement, these documents are standard across many fields. As such, understanding the purpose they serve and the benefits is essential for both parties to feel confident in the contract. If you’re unfamiliar with non-disclosure agreements, you’ll want to keep reading to learn more about their functions and discover how Pennsylvania employment lawyers can help answer any questions or concerns you have.
What are non-disclosure agreements?
A non-disclosure agreement (NDA) is a legally binding document that creates a confidential relationship between the parties signing. This ensures that information exchanged between the parties cannot be shared with others. Many companies seek to protect trade secrets, business ideas, plans, customer information, and operating details.
These documents are standard when two companies engage in business together or when a business hires a new employee. In some instances, all employees of a company may be required to sign an NDA upon accepting a job offer, while others may only need specific departments or individuals to sign based on the work they do.
What are the benefits?
There are many benefits of these agreements. The most common is that it helps ensure that the information that helps your business succeed is kept secret to prevent your competitors from stealing ideas or taking clients away.
Not only does it help ensure your competition won’t get this information, but it also helps create a strong bond of trust between an employer and their employees. Because you trust them with these details, they will feel valued in their role, which can help boost morale around the office.
Finally, if either party violates the terms of the non-disclosure agreement, it is grounds for legal action. When someone breaks the contract, the other party has the right to pursue compensation.
Do I need an attorney?
If you’re a business looking to protect your work or an employee who was asked to sign an NDA, it’s essential to ensure you have an attorney review the document.
As a business, letting a lawyer check the contract will help ensure it is complete and legally binding. Unfortunately, some documents can contain loopholes, leaving the company vulnerable.
For employees, having an attorney review the document before you sign can help ensure the terms of the agreement are fair before you enter into a legally binding contract. In some instances, employees may enter unfair agreements far too broad in the information it protects.
At Friedman Schuman, we understand the complexities of non-disclosure agreements. As such, we will do everything possible to help ensure you understand the validity and terms of the document before entering into an agreement. Call our office today to learn how we can assist you.
