In your day-to-day business operations, there are many situations when you can benefit from sharing sensitive information with your employees to gain an advantage in your industry. Depending on your industry, this can be a manufacturing technique, customer database or a special recipe.
One of the most effective ways of safeguarding crucial company information is by getting your employees to sign a non-disclosure agreement (NDA). Basically, this is a contract that prohibits the signing party from sharing or misusing the company’s secrets as defined in the NDA.
So, what happens if an employee violates the non-disclosure agreement? Take the following steps, first:
1. Document the violation
As soon as you realize, or suspect, that your employee has violated the NDA, you need to begin investigating and collecting evidence that you will need to support your claim should the matter end up in court. The sooner to begin collecting or documenting your evidence, the easier it will be for you to prove your claim. Here are some of the questions you need to ask when gathering your evidence:
- Who breached the NDA?
- How did they breach the NDA?
- To whom did they disclose the confidential information?
2. Establish the losses the breach has caused
If you decide to take legal action against the employee who violated the NDA, then you will have to prove that the breach cost your business money. Not only is this crucial for determining recoverable damages but also for establishing the significance of the breach.
No matter the size or nature of your business, there is a pretty good chance you have confidential and valuable information that is worth protecting. Taking proactive steps against an employee who violates the non-disclosure agreement can help protect your company’s trade secrets and market share.