In the Philippines, when employees join the company, they are not only required to sign a labor contract. To nip things in the bud and avoid unnecessary disputes in the future, it is recommended that employers take confidentiality measures, including requiring employees to sign a confidentiality agreement.。
A Non-Disclosure Agreement is an express confidentiality commitment, and any party must be bound by it after signing. If an employee discloses the company's trade secrets, which is a breach of contract, the company can also seek protection under contract law.
After all, trade secrets are the core content of a company. They are related to the competitiveness of the company, are crucial to the development of the company, and some even directly affect the survival of the company.
Therefore, the confidentiality agreement is signed to prohibit employees from spreading or leaking the employer's sensitive information while on the job or after leaving the company.
What information does a confidentiality agreement cover?
include:
-Trade secrets
-Undisclosed proprietary information or technology;
-Marketing/sales strategy or business strategy;
- Personal information or sensitive personal information being processed by the employer; or
- Any data or information that is not public.
A confidentiality agreement should only cover confidential information. Therefore, if the information is already public or general knowledge, it cannot be the subject of a confidentiality agreement.
Expiration date of confidentiality agreement
In the Philippines, there is no law stipulating the duration of a confidentiality agreement. The time limit may be stipulated by both parties. Therefore, confidentiality agreements with lifelong confidentiality obligations are valid and legal.
Consequences of breach of confidentiality agreement
In the Philippines, employees who breach a confidentiality agreement may be liable for damages. The amount of compensation will depend on the degree of harm such disclosure causes to the employer.
An employer may bring a civil action against an employee who breaches a confidentiality agreement for breach of contract or for damages caused by the contract. In addition, employees may also be required to pay related legal fees.
Tips
*It is recommended that employers sign confidentiality agreements with employees who have access to, know or possess trade secrets.
*It is recommended that the confidentiality agreement be drafted by a professional lawyer to ensure that the agreement has Philippine legal effects.
*It is recommended that you do not use online templates casually, because these templates cannot guarantee whether they are drafted by professionals and may not be consistent with the parties involved.
Legal risks are everywhere, and for small and medium-sized enterprises, the best way is to prevent them before they happen. Welcome to consult FEILONG LEGAL at any time, and we will provide you with professional, efficient and inclusive legal advisory services based on your actual situation.