Meaning
Contractual clauses binding workers to protect trade secrets and proprietary information form a fundamental component of labor agreements in technology sectors. These employment confidentiality covenants remain valid both during the term of service and for a specified period after the worker departs. The obligation covers technical formulas, client lists and pricing strategies discovered during the performance of duties.
Secrecy Period
Restrictions on the use of information typically last as long as the information remains a secret in the market. This period is independent of the non-compete term and does not require the payment of additional compensation under standard civil law.
Worker Obligation
Employees must take active steps to maintain the secrecy of the data they handle, such as using passwords and returning documents upon resignation. This obligation extends to accidental disclosures caused by negligence.
Breach Consequence
Violating the agreement triggers a liability for damages which may include the loss suffered by the company or the profit gained by the worker. Courts may also issue an injunction to stop the former employee from using the secret at a new firm. If the breach involves the theft of high-value technology, the matter may transition from a civil dispute to a criminal investigation.
