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Confidentiality Clause Defined Confidentiality clauses, also known as non-disclosure agreements, prevent the signing party from divulging sensitive information, personally identifiable information (PII), and trade secrets. These protections are for documents as well as verbal communications.

In most cases, confidentiality agreements are signed when an individual is first hired and are valid through the termination of their employment or, in some cases, a period of time after employment ends. However, in some cases, you may be required to sign a confidentiality agreement prior to an interview.

A typical confidentiality clause might say, "The phrases and circumstances of this Agreement are completely confidential between the parties and shall not be disclosed to anybody else. Any disclosure in violation shall be deemed a breach of this Agreement."

Use a standard format for contracts. Decide what type of confidentiality statement you should use. Identify the involved parties in the agreement. Define the information to keep confidential. List the information excluded from the agreement.

Writing the Confidentiality Agreement. Start with the basic information. This will include the title of your contract and the parties making the agreement. You may also want to include a general introduction that states the purpose of the contract.

Confidentiality clauses are also known as non-disclosure agreements (NDAs). They prevent employees from making business secrets and sensitive information public or sharing them with competitors.

A typical confidentiality clause might say, "The phrases and circumstances of this Agreement are completely confidential between the parties and shall not be disclosed to anybody else. Any disclosure in violation shall be deemed a breach of this Agreement."