What to do when an employee violates a non-disclosure agreement

On Behalf of | May 31, 2023 | Contracts

In the business world, protecting sensitive information and trade secrets is paramount. As a result, companies often require their employees to sign non-disclosure agreements (NDAs) to help safeguard their valuable intellectual property.

However, despite preventive measures, there may be instances where an employee violates the terms of an NDA. If this is your current predicament, here is guidance on handling the aftermath.

Assess the severity of the violation

Before taking any action, it is vital to evaluate the seriousness of the breach. Not all non-disclosure agreement violations are equal, and understanding the extent of the damage caused can help determine the appropriate response.

Commission a thorough internal investigation to gather evidence, review contractual obligations and assess the impact on your business. Once you have all the facts, you can look into your rights, obligations and the legal remedies available in an effort to protect your company’s interests.

Enforce the non-disclosure agreement terms

Once you have gathered the necessary information and sought the legal way forward, enforcing the terms of the NDA is crucial. First, review the agreement and identify the specific provisions that have been violated. 

Then, depending on the severity of the breach, you may consider taking legal action against the employee to seek damages or injunctive relief. By holding the violating party accountable, you send a clear message about the importance of confidentiality and the consequences of disregarding NDAs.

Mitigate further damage

In addition to addressing the immediate violation, it is essential to take proactive measures to help mitigate any further damage caused by the breach. This may involve implementing enhanced security protocols, reviewing and updating existing NDA policies or conducting additional training sessions for employees to reinforce the importance of confidentiality. By strengthening your safeguards, you minimize the risk of future breaches and help protect your company’s sensitive information.

Swift and well-informed action are crucial when an employee violates a non-disclosure agreement. If you’re unsure about what to do next, experienced legal guidance can help.