The 5 Major Components of a Non-Disclosure Agreement

The Social Science Research Network, an academic journal for the social sciences and humanities, conducted a study which found that over a third of American employees have signed an NDA — a document requiring one or more parties to refrain from divulging confidential information to the public.

A non-disclosure agreement is an invaluable tool to have on hand whether you’re conducting business with third parties or simply hiring new employees.

Imagine discussing integral business practices with a new IT candidate during the onboarding process. If you’re worried that a new (or even current) employee might take your sensitive information to a competitor, having them sign a non-disclosure agreement is the first step in preventing staff from becoming your biggest security threat. NDAs help ensure that your proprietary information remains confidential — lest the offenders wish to find themselves in court.

When attempting to draft your own non-disclosure agreement, it can be difficult to know where to start without hiring costly attorneys. However, as the non-disclosure agreement infographic below shows, creating your own NDA is easier than you think.