What is an NDA or nondisclosure agreement, which is usually referred to as an NDA, is a professionally written agreement between employer and employee, between two parties, between two entities, restricting one party from sharing classified, sensitive and confidential information. NDA is signed by the employees before starting the job, during the job or when leaving the job. But employees can only be managed at the time of employment. NDA is usually not alone. A non-compete clause is also signed together with NDA. NDA is a very important agreement especially when there is serious level of employment responsibilities, serious level of business responsibilities etc. Employees, business entities etc are not required to sign the NDAs but as we mentioned before this can be a requirement.
NDAs are drafted and implemented so that business ideas and customers cannot be stolen. NDAs are drafted along with non-compete agreements, so it’s an attempt to keep a company’s secret sales and customer data from competitors. It’s not just about customers or sales, there can also be serious information. The Other Party can open the file (case) for the damage and compensation and can also request the court to impose a work ban on employees if the non-competition clause has also been signed. In normal circumstances, NDA may not seem like a serious action, but in mega-corporations it is one of the most important factors as all important sales and business value can be lost if something is done against the company by compromising or sharing sensitive information.