The term non-disclosure agreement is used to describe a contract between two parties that outlines how confidential materials or information may be shared with others. While non-disclosure agreements oftentimes involve non-employees, companies will sometimes ask employees to sign these agreements when they are first hired.
Also known as a confidentiality agreement (CA), a non-disclosure agreement (NDA) is a legal contract between two or more parties that outlines how proprietary information may be shared. Confidentiality agreements usually involve employees and their employers, while non-disclosure agreements normally involve a corporation and non-employees.
The purpose of these agreements is to protect the company's proprietary, non-public information from disclosure to other parties. NDAs are usually signed when one party has a need to share this information with another party for a specific purpose. For example, one company may hire another to help them improve a process that involves trade secrets.
The non-disclosure agreement will typically address a number of items:
applicant pool, pre-employment drug testing, workplace drug testing, employment background check, pre-employment test, employee eligibility form, nonsolicitation agreement, non-compete-agreement