When the employer and the employee conclude a confidentiality agreement, if they do not conclude a non-competition agreement at the same time, they cannot agree on liquidated damages. Although they can claim damages, it is difficult to prove and operate. Therefore, in order to protect the legitimate rights and interests of employers, it is suggested to conclude a non-competition agreement with workers at the same time, and stipulate liquidated damages in the agreement.
Business secret refers to the technical and business information that is not known to the public, can bring economic benefits to the employer, is practical, and is kept confidential by the employer. Not known to the public means that information cannot be obtained directly from public channels. Being able to bring economic benefits and practicality to the obligee means that the information has certain applicability and can bring real or potential economic benefits or competitive advantages to the obligee. Take confidentiality measures, including signing confidentiality agreements, establishing confidentiality systems and taking other reasonable confidentiality measures. Technical information and business information, including design, procedure, product formula, production technology, production method, management know-how, customer list, source information, production and marketing strategy, pre-tender estimate and tender contents.
Article 22 of the Labor Law stipulates that the parties to a labor contract may agree in the labor contract on matters related to keeping the business secrets of the employer. Article 23 of the Labor Contract Law stipulates that the employer and the employee may agree in the labor contract to keep the business secrets of the employer and confidential matters related to intellectual property rights.
To conclude a confidentiality agreement, you can directly stipulate the confidentiality clause in the labor contract, you can also stipulate the ownership of intellectual property rights or the non-competition agreement in the contract, and you can also sign a confidentiality agreement separately. When signing a confidentiality agreement, the principle of fairness and reasonableness should be followed. The main contents of the confidentiality agreement generally include: the content and scope of confidentiality, the rights and obligations of both the employer and the employee, the confidentiality period, and the liability for compensation for infringement of trade secrets. Confidentiality agreements can be signed when employees join the company or after they join the company. The employer has the right to refuse to hire a worker who refuses to sign a confidentiality agreement. However, the confidentiality agreement shall not violate the provisions of laws and regulations, and the rights and obligations of both parties determined in the terms of the agreement shall not be obviously unfair.