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Allow me to share with you these 21 Free Confidentiality Statement Templates in MS Word Format to assist you in preparing your own.
In the recent few years, the world has become a global village where anyone can talk to any person in any corner of the world without any restrictions of time and day. Companies and organizations and booming and profit charts are skyrocketing. Along with this growth, networking between companies and employees is also increasing and getting better. With this networking and socializing in bigger groups, here comes the risk of getting sensitive information or confidential details leaked to irrelevant or unauthorized persons. It’s not always intentional that someone leaks sensitive information to someone who is not authorized to hear it but it can also be done by mistake.
In order to secure company secrets and private information, employers usually ask the employees to sign a confidentiality agreement where they agree that the information, they know about the company i.e. production secrets, tracking tricks, manufacturing recipes, will be kept secret and they won’t share these with anyone outside the company. The agreement is known as confidentiality statement, and it depends on the agreement if it bounds the employees not to leak information during their employment or even after they leave the company.
Importance and uses of Confidentiality Statement:
As it’s stated above that a confidentiality statement is a legally binding agreement between two parties i.e. an employer and employee where they both agree to keep certain information secret and hidden from outsiders. In the business community where a small information can make a huge difference, it’s really important for the employer and company owners to secure their tracking secrets and don’t let anyone reveal the sensitive information to anyone. For this purpose, as soon an employee is hired who’s JD is to handle secret information is asked to sign a confidentiality statement where he agrees not to share the information with anyone outside the authorization limit.
Another scenario is when the owner of a company is producing something unique i.e. food item or any other product that has a unique formula or recipe, they make it certain that no one in the company or production unit leaks the formula or recipe to anyone especially rival groups and competitors. For instance, you are making pizza or fried chicken in your restaurant and customers love the recipe so much that they just come to your place instead of going to other restaurants. It’s possible that someone in your kitchen finds out the recipe and leaks it to a competitor so you need to make sure that each of your employee signs a confidential statement before joining. Keep in mind that this can also be reverse as well where someone is forced to reveal confidential information by entering into an agreement i.e. when someone is trying to purchase a business and they ask the seller to reveal confidential information i.e. financial situations, debts, liabilities and risks involved in it.
Confidentiality Statement Templates:
Here are previews and download links for these Confidentiality Statement Templates in MS Word Format,
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Statement Template Word Free Download
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Key Elements of Confidentiality Statement:
- Add the information of both parties:
To start the confidential statement/agreement, you need to include full names of both the parties involved in the agreement. Typically, when we talk about a confidentiality agreement, one is employer, and one is employee but any two parties can enter into a confidentiality agreement depending on the circumstances and situation. In either case, the agreement should include full details of the both parties including full names, addresses, contact information etc.
- Description of the confidentiality statement:
Next is the part where you mention why you needed to sign the confidentiality agreement in the first place. For instance, as an employer, you are hiring new employees who will somehow come in contact with the trading secrets. These are the secrets that you don’t want to reveal to competitors, so you ask the employees not to share anything to anyone outside the company by asking them to sign the confidentiality agreement.
- Timeline and expiry of the statement:
In this portion, you mention when the confidentiality agreement will take effectiveness i.e. immediately after it’s signed or after a certain period of time. Also, there should be a clause in this section that specifies the expiry of the agreement i.e. as soon the employee resigns or if he is terminated or if the company is sold or if there is legal department involved and everyone is asked to reveal all the secret information on record.
- Explanation of warranty and use of the information:
This is an important part of the confidential agreement. This is where the person sharing secret information claims that in the future if any of the information is found wrong, he can’t be held responsible for it. In the same manner, the person getting the secret information also states that he can use the information as many times as he wants, and he can also keep using it for indefinite period of time unless a timeline is specified by the person revealing the information.
- Signature of both parties:
At the end, there is nothing left but for both parties to sign the agreement and make it official. It’s not necessary all the time but it’s always better to have at least two witnesses so if something goes wrong in the future, the witnesses will reveal what happened and who violated the agreement.
Related Word Templates:
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