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Should you sign a non-disclosure agreement or negotiate it?

On Behalf of | Aug 21, 2023 | Employment Contracts |

In today’s competitive business landscape, signing a non-disclosure agreement (NDA) has become a common practice for many companies when onboarding new employees. This legal document aims to protect a company’s sensitive information and trade secrets from being disclosed to competitors or the public.

However, the decision to sign an NDA as a new employee is not always straightforward. Should you sign a non-disclosure agreement (NDA) or negotiate its terms? Below, you’ll delve into the intricate world of NDAs, their significance and the factors to consider before making an informed decision.

What is an NDA?

An NDA is a legally binding contract between an employer and an employee. Its primary purpose is to safeguard the confidential information that the employee may gain access to during their employment. This information can range from proprietary technology and business strategies to customer data and financial information.

Should you sign or negotiate the terms?

Signing an NDA can demonstrate your commitment to respecting your employer’s confidentiality. This act of trust can help establish a strong working relationship, potentially leading to job security and further company growth opportunities.

However, an NDA may include clauses restricting your ability to work for competitors or start your own business in a related field for a certain period after leaving the company. This can limit your career options and entrepreneurial pursuits.

Moreover, NDAs can sometimes be vague or overly broad in their language, making it difficult to discern what information is actually confidential. This lack of transparency might inadvertently lead to accidental breaches.

Rather than mindlessly signing or refusing outright to sign an NDA, consider negotiating its terms. You could propose amendments that address your concerns, such as narrowing the scope of confidential information or reducing the duration of post-employment restrictions.

Non-disclosure agreements help protect a company’s intellectual property and maintain a competitive edge. However, when presented with such a document, consider going through it with a legal professional who can help you determine if you should sign it or negotiate its terms.


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