Employee Termination Non-Disclosure Agreement

An employee termination non-disclosure agreement is a document that prevents a former employee from disclosing their employer’s confidential information after their termination. It establishes the employee’s last day of work, severance pay amount, their duty to protect confidential and proprietary company information, as well as the repercussions for failing to do so.

Employee Termination Non-Disclosure Agreement

An employee termination non-disclosure agreement is a document that prevents a former employee from disclosing their employer’s confidential information after their termination. It establishes the employee’s last day of work, severance pay amount, their duty to protect confidential and proprietary company information, as well as the repercussions for failing to do so.

Last updated June 11th, 2024

An employee termination non-disclosure agreement is a document that prevents a former employee from disclosing their employer’s confidential information after their termination. It establishes the employee’s last day of work, severance pay amount, their duty to protect confidential and proprietary company information, as well as the repercussions for failing to do so.

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NLRB and Severance Agreements

On February 21st, 2023, the National Labor Relations Board ruled that offering severance agreements with overly broad non-disparagement and confidentiality clauses violates employees’ rights provided under the National Labor Relations Act.
However, the Board determined that confidentiality clauses in such agreements may be lawful if they are limited to protecting trade secrets or proprietary information.[1]

Sample

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EMPLOYEE TERMINATION NON-DISCLOSURE AGREEMENT

[EMPLOYER NAME]
[EMPLOYER STREET ADDRESS]
[EMPLOYER CITY, STATE, ZIP]
[MM/DD/YYYY]

[EMPLOYEE NAME]
[EMPLOYEE STREET ADDRESS]
[EMPLOYEE CITY, STATE, ZIP]

Dear [EMPLOYEE],

This Employee Termination Non-Disclosure Agreement (“Agreement”) is entered into between [EMPLOYER NAME] (“Employer”) and [EMPLOYEE NAME] (“Employee”) in connection with the termination of the Employee’s employment with the Employer.

Termination Date: The Employee’s last day of employment with the Employer was on [MM/DD/YYYY]. This termination is in accordance with [TERMINATION REASON].

Consideration: In consideration of the Employee’s execution of this Agreement and subject to the Employee’s compliance with all its terms, the Employer agrees to provide the following:

a. Severance Pay: The Employee will be entitled to receive severance pay in the amount of [AMOUNT ($)] less any required deductions and withholdings. This amount is contingent upon the Employee signing and not revoking this Agreement.

b. Other Benefits: [OTHER BENEFITS]

Release of Claims: In exchange for the consideration provided in this Agreement, the Employee agrees to release and discharge the Employer and its officers, directors, employees, agents, and affiliates from any and all claims, liabilities, demands, actions, or causes of action, whether known or unknown, arising out of or in any way related to the Employee’s employment or the termination thereof, up to and including the date of this Agreement.

Confidentiality and Non-Disclosure: The Employee agrees to maintain the confidentiality of any proprietary or sensitive information obtained during their employment and agrees not to disclose such information to any third party. This obligation extends beyond the termination of employment.

Return of Company Property: The Employee agrees to return all company property, including but not limited to laptops, mobile phones, keys, documents, and any other materials belonging to the Employer, by [MM/DD/YYYY].

Acknowledgment: By signing this Agreement, the Employee acknowledges that they have had sufficient time to review and consider its terms and that they have been advised to seek legal counsel before signing. The Employee also acknowledges that they understand the rights they are waiving by signing this Agreement.

The Employee and Employer have executed this Agreement as of the date first written above.

Employee’s Signature ___________________________   Date: _______________
Print Name: ___________________________

Employer’s Signature ___________________________   Date: _______________
Print Name: ___________________________
Company: ___________________________
Title: ___________________________