A legally binding document that prevents the employee discussing commercial-in-confidence or other sensitive proprietary information with anyone else. This may be defined as people external to the firm, but may also include not disclosing information to other employees, (such as in the case of a workers compensation settlement or disciplinary action).

This is an important document for every employer to have in place in their organizations in order to protect the workplace. This is also to avoid the risk of employees using company information or even copy and paste the organization's policies to start off their own businesses; A confidentiality agreement also ensures that employees do not contact the organisation’s clients outside their workplace.