Employee Confidentiality Policy

This Employee Confidentiality Policy template sets a good foundation for your employment policies regarding the management of confidential information. It should be adapted to your company’s specific needs and circumstances.

The Principle and Application

Employees will naturally receive and handle personal and confidential information about our clients, partners, and the company. This information should be well-protected for two reasons:

  • It may be legally binding (e.g. sensitive customer data).
  • It may serve as the backbone of our business, which gives us a competitive advantage (e.g. business processes, market secrets, etc.).

This company’s confidentiality policy explains how employees are expected to treat confidential information and consequences for inappropriate management of the same.

The policy affects all employees, board members, investors, contractors, and volunteers in the company who have access to confidential information.

The Policy Highlights

Confidential information should be kept discreet because it is valuable and often sensitive. It can also be easily pirated or replicated, which is dangerous for business.

Examples of confidential information include:

  • Unpublished financial information
  • Data of customers/partners/vendors
  • Patents, formulas, or work technologies
  • Contact list for current and prospective customers
  • Data from external parties entrusted to us
  • Pricing and marketing strategies
  • Documents and processes that are explicitly classified as confidential
  • Unpublished targets and business plans marked as confidential

Employees Should Remember to:

  • Keep confidential information locked at all times
  • Shred confidential documents once they are no longer needed
  • View confidential information only on secure devices
  • Disclose confidential information to other employees only when it is necessary and authorized
  • Retain confidential documents within the company premises all the time unless there is a compelling reason to move them

Employees Should Not:

  • Use confidential information to advance a personal agenda
  • Disclose confidential information to persons outside the company
  • Store copies of confidential documents and files on insecure devices

Protection of Confidentiality Data

To ensure confidential information is well protected, we will:

  • Store and lock paper documents
  • Encrypt electronic information and safeguard databases
  • Have our employees sign non-compete or non-disclosure agreements
  • Condition access to confidential data to approval by senior management

Exceptions

Examples of legitimate grounds to disclose confidential information include:

  • If a regulatory body requests it as part of a routine audit or legal investigation
  • If the company enters into a venture or partnership that requires disclosure of some information (within the legal framework)

In these cases, employees concerned should document the specific information that is needed and seek authorization. We should always be careful not to disclose more information than what is needed.

Prospects of Disciplinary Action

Employees who defy our confidentiality policy will face disciplinary action, which may also entail legal action.

We will always investigate any breach of the policy and:

  • Terminate employees who willfully and regularly breach the guidelines for personal gain
  • Punish even unintentional breaches of this policy depending on frequency and seriousness

The policy is binding to employees even after leaving employment

Download this policy sample:

Google Doc – Letter
PDF Document – Letter (.pdf)
Microsoft Word – Letter (.docx)
OpenDocument Format – Letter (.odt)
Rich Text Format – Letter (.rtf)
Plain Text – Letter (.txt)
Google Doc – A4
PDF Document – A4 (.pdf)
Microsoft Word – A4 (.docx)
OpenDocument Format – A4 (.odt)
Rich Text Format – A4 (.rtf)
Plain Text – A4 (.txt)

Disclaimer: This information is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor World Manager will assume any legal liability that may arise from the use of this information.

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