All HR terms

HR TERMS, EXPLAINED

Non-Disclosure Agreement (NDA)

A Non-Disclosure Agreement, or NDA, is a legal contract that prevents an employee from sharing confidential company information with outsiders.

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A Non-Disclosure Agreement, or NDA, is a legal contract that prevents an employee from sharing confidential company information with outsiders. Companies use an NDA to protect sensitive data like business strategies, client information, and proprietary processes. It is usually signed at the time of joining and often continues to apply even after the employee leaves the company. Breaking an NDA can lead to legal action against the employee.

Definitions are general guidance. Your organisation's policies and applicable local requirements determine how a term is used in practice.

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