Kannanmv
Hr & Administration
Rajanassociates
Legal Counsel
Amit Insha
Hr & Compliance
Sachin_007
Publication
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Pradeepanckumaran
Accounts, Finance & Admin
Garima2281
Training And Development
Narasimha Bhss
Hr Generalist
+5 Others

Hi,
Is it necessary to have agreements such as "Confidentiality and Non-Disclosure Agreement " between company and employee to be on stamp paper? What will happen if the agreement was on a plan paper?


12th November 2010 From India, New Delhi
Good Afternoon Dear,
As per your above post that is depend upon your company's terms & condition.
Yes it is necessary to have agreements such as "Confidentiality and Non-Disclosure Agreement " between company and employee to be on stamp paper.
if your agreement in simple paper so that is not valuable but if you using company later head for same that is substitute of stamp paper.
12th November 2010 From India, Delhi
Dear madam,
Any agreement is enforceable in a court of law. Other than writing, even if a claimant could prove in a court of that a verbal agreement was made, that is also enforceable .
Now the difference is,
Basic
if you choose to execute on a plain paper or on a letter-head by the concerned parties only, again with witnesses, again with non-partisan witnesses.
Further,
again the same choices as above on a stamp paper
still further,
the same choices as above on a stamp paper and registering the agreement with the registrar.
The enforceability becomes stronger. And your legal counsel could guide you further professionally, that with each stronger options, you may be able to charge more severe laws for a breach.
I guess this meets your query to some extent.
regards.
12th November 2010 From India, Pune
Hello Garima,
HR RAES Services has really given it with great clarity. I guess it's clear to you.
But I would like to add one point here.
While with each stage/step that was mentioned, the enforceability becomes better & better, the ACTUAL DECISION of using which stage for what [basic/next/further-next] depends on the ACTUAL NEED for it. Usually registering the document/agreement with a Registrar is done only for very important ones--best examples would be Sale Deed/Agreement for land, Wills, etc.
Rgds,
TS
12th November 2010 From India, Hyderabad
Hi Garima,
It all depends on the position the employee is in. If you feel that the "Confidentiality and Non-Disclosure Agreement " is a compulsary due to the job profile of the employee, then the guidelines given by HR RAES Services are perfectly apt.
Regards

12th November 2010 From India, Hyderabad
Dear Garima,
In my opinion Confidentiality and Non - Disclosure agreements between Employers and Employees can be on Letter head of the company and it may still be enforceable in the court of law.
If the nature of the information is too critical then it would be preferable to have witness on either side. If you feel it is necessary you can still affix your company's seal.
Generally, the content of the Confidentiality and Non - Disclosure agreements are the vital ones to enforce it. I trust you have elaborate procedures for it.
But it would be wise to consult your legal counsel while drafting the agreement because he will be able to back you up in the event of a trouble.
Regards
M.V.KANNAN
13th November 2010 From India, Madras
Dear

This Agreement in HR circles is called as NDA.

This Agreement has some value if it is entered with employees who are dealing with sensitive data of the employer.But these days it is signed with every one without any purpose and has become a part of the joining kit.

It may be good for white collared jobs where the employee is handling sensitive data but definitely for blue collared there is no purpose.For Temporary Employees it would have no effect as would be purposeless as the Employer will know that the purpose of employment is temporary and for its enforcement it is difficult to track the concerned employee.But Employers for their own satisfaction are getting it for their records to instill fear in the employees mind.There is no data available in HR circles on its enforcement and the case law on the subject is on its enforcement in very Senior positions.

Like any other Agreement it has to be on stamp paper .If not signed on Stamp Paper when it is sought to be enforced the penalty can be paid .

The time limit for enforcing it is 3 years after the employee has left the organization.

With Regards

Advocates & Notaries & Legal Consultants[HR]

E-mail : rajanassociates@eth,net,

Mobile : 9025792684.
13th November 2010 From India, Bangalore
hi Can any body share me a adraft of such NDC between company and staff pls help regds Pradeepan
13th November 2010 From India, Raipur
What is "Confidentiality and Non-Disclosure Agreement"? What is it generally used for? To prevent what? Regards Anoop PS. I hope my query does not digress from the original query.
13th November 2010 From India, Delhi
Every agreement shall be on adequate stamp paper in absence document can not be accepted in evidence and with out proper stamp duty it can not be legally enforcable.
13th November 2010 From India, Jamnagar
Hello Anoop,
Pl look at Rajan Associates reply in this Thread--your answer is there.
Hello Pradeepan-- Attaching a format that I got it earlier from CiteHR itself [needless to mention CiteHR is a Goldmine of information with the members being one of the rare kind who 'SHARE'--mind you, I am not taking the credit for this, since I got this from someone who posted the Format earlier]. Hope it's of use to you.
Rgds,
TS
13th November 2010 From India, Hyderabad

Attached Files
Membership is required for download. Create An Account First
File Type: doc CONFIDENTIALITY AGREEMENT.doc (36.0 KB, 1042 views)

Good Afternoon Dear,
As per your above post that is depend upon your company's terms & condition.
Yes it is necessary to have agreements such as "Confidentiality and Non-Disclosure Agreement " between company and employee to be on stamp paper.
if your agreement in simple paper so that is not valuable but if you using company later head for same that is substitute of stamp paper.
more at https://www.citehr.com/295018-confid...#ixzz158kWLD1s
13th November 2010 From India, Mumbai
Iam afraid - an agreement on company’s letterhead may not substitute a stamp paper in law
14th November 2010 From Mauritius, Vacoas
Dear All

Please do not be under the impression that if the NDA is not on stamp paper it has no value.It has value .This is because of Section 35 of The Indian Stamp Act, which reads as under:-

"S.35. Instruments not duly stamped inadmissible in evidence, etc.-- No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped: Provided that --

(a) any such instrument not being an instrument chargeable with a duty not exceeding ten naye paise only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion; (b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it; (c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped; (d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898; (d) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act."

Therefore when a case is filed by paying penalty the Stamp Duty can be made good.

With Regards

Advocates & Notaries & Legal Consultants[HR]

E-mail : rajanassociates@eth,net,

Mobile : 9025792684.
14th November 2010 From India, Bangalore
Hi Garima
This agreemenent is not necessary to be executed on Stamp Paper. It may be executed on Plain paper but for its enforceaility it is necessary that the same is signed by both parties on each page & be attested by two witnesses.
Gaurav Bansal
Advocate
9818826208
15th November 2010 From India, New Delhi
................................... ............................................. ........................
1st December 2010 From India, New Delhi
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™