Non-Disclosure Agreement
A legal contract preventing employees from sharing confidential company information.
Also: NDA · confidentiality agreement
Definition
A Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a legally binding contract in which one or more parties agree not to disclose certain confidential or proprietary information to third parties. In an employment context, NDAs protect trade secrets, client data, product plans, and business strategies. They can be signed at hiring as part of the employment contract, or separately before exposing an employee to sensitive information.
Example
“All employees in the R&D department were required to sign an NDA before gaining access to the company's proprietary formula database, with a five-year post-employment restriction on disclosure.”
Synonyms
- confidentiality agreement
- secrecy agreement
- proprietary information agreement