Salary- Non Disclouser Agreement - CiteHR
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Dears, I am looking for a salary non disclosure Agreement between the employer and his employees. i will appreciate it if you can provide me with a format or template if you have. Many Thanks, Amira.
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Dear Amira
There will be a clause available in the Offer employment issued to the employee after disclosing the pay package compensation and benefits details. It should not be disclosed to any other personnel and confidentiality should be maintained about the pay package and benefits given to the employees.
Please check whether you made some clause in your company's offer of employment letter or not. If not, please add for further new appointments and for existing employees you can issue an addendum to the issued offer of employment letter.
It can be issued in addition as we have already mentioned in the offer letter that any of the contents may be modified/deleted or added without giving any notice to the employees.
Hope I have cleared your doubt. Let us expect some more reply in this issue
Dear S. Bhaskar
Thanks for your reply; I know it may be included in the employment offer letter or even in employee's contract but actually i dont have and i need the context itself in terms of the confidentiality as well as the consequences of such action.
Dear Amira,

You forgot to mention the state you are based at and your role in the organisation?

You can specify in the appointment/joining/offer letter that " You understand and affirm the need to treat your compensation as highly individual and confidential, which is to be discussed only with your HOD and/or HR/People Manager"

Apart from this I am not sure you can hold the employee against any legal law.

This is an employee's moral and ethical responsibility to keep his remuneration offered confidential.

Whatever you may say to the employee, after sometime of joining, he will discuss his salary with his colleagues just to compare.
It is the job of respective HR Professional to make an employee understand and convince as to why he has been given a particular package.

This process should be based on transparency rather than concealment.

There could be many differences among 2 individuals starting from Educational/Professional Qualifications, respective ranking of the institutes from where they have completed their education, level and tenure of experience to technical know how.

Apart from this their performance, skill and capabilities both technical and behavioural displayed during the interview, single most important point where an employee is judged before giving an offer.

Can I know the real reason of non disclosure agreement of salary because in our organization and in all government organization the salary details are just kept open to all because salary is based on parameters such as SEniority, professiona, qualitifcation, experience etc,so even the pune knows the salary of director,

i think if you can convince others as to why there is difference of CTC between 2 staff having same age, batch of same degree year, same qualifications, etc, then there is no need at all for NDA, but if some company indulges in partiality or giving salary to the person liked by HR, or Tech Manager then NDA is thrusted upon employees.

This i observed in my previous company where my salary was less than another colleague of mine so i asked HR that why his salary is more and why mine is less, and i told im going to resign, but HR told me that dont resign we will increase your salary, i told i dont want your salary increase , you should have given me at par with that person while recruiting itself, so i know i was being cheated by HR and did the right thing.
Thanks you all for your advices, actually i am in acquisition conditions and according to the current situation i cant do alot about employee salaries at the time being. however i am afraid they are not treating the matter in a confidential way, so in order to minimize the problems may arise during the trasaction itself. i want to control such attitude.
Thank you Sourabh for your reply i will put it in a letter context so far. will see how things will go.
for those who asked about my job; i am working as HR Manager in a financial services industry.
Many Thanks,
Dear Amira,

The following some paragraphs may help you....


THIS AGREEMENT is made on this day of 2001 BETWEEN XXX SDN BHD , a company incorporated in Malaysia and having its place of business at xxx( hereinafter referred to as "Employer") of the one part AND xx bin zz , IC No xxxxx-of No xxxxx (hereinafter referred to as "Employee") ( and collectively referred to as "the Parties").


1. By a letter of appointment dated dd/mm/yy (hereinafter referred to as "Letter of Appointment"), Employer has offered employment to Employee to fill the position as _____________with effect from dd/mm/yy and Employee has accepted the offer of employment as ______________ upon the terms and conditions therein.

2. Pursuant to the acceptance of employment as ____________by Employee or any other subsequent positions as may be decided upon by Employer, Employee has agreed to enter into an agreement with Employer on the non-disclosure of information, specifications, drawings, data, documentations, pricings, trade other technical or business information, including but not limited to financial conditions, marketing strategies, know-how, suppliers, customers, operations and patent applications which Employer considers as "Confidential" (hereinafter referred to as "Confidential Information"), whether in written or oral form.

NOW IT IS HEREBY agreed between the Parties as follows :-


1.1 Employee agree and undertake to hold the Confidential Information absolutely secret and in the strictest confidence and not to at any time disclose or use or permit to be disclosed or used any of the Confidential Information for any purpose other than upon the instruction and direction of Employer.

1.2 Employee shall use his best efforts to limit dissemination of Confidential Information to other employees, officers and agents of Employer on a need to know basis or as directed by Employer, and not to disclose to any other person(s) or organisation(s) that has not signed a non-disclosure agreement with Employer specifically directed to Confidential Information (if Confidential Information is disclosed to those who have signed such non-disclosure agreement with Employer, Employee shall inform Employer prior to such disclosure and shall inform such person(s) or organisation(s) that the Confidential Information is confidential to Employer and that such Confidential Information is subject to the restrictions and obligations of such non-disclosure agreement between such person(s) or organisation(s) and Employer).

1.3 Employee undertakes to inform and advise those whom information is disclosed of Employee's obligations with respect to the Confidential Information and enforce compliance therewith.

1.4 Employee shall not reverse engineer, decompile, disassemble or decode any software or any portion thereof or derive any source code or algorithms therefrom or reproduce or copy any of the Confidential Information except as required for the purposes authorised by this Agreement and that upon request, all such Confidential Information in tangible form will be returned to Employer and all such information shall be erased from Employee's computer system(s) and written confirmation thereof provided to Employer.

1.5 Employee shall further undertake forthwith, upon request by Employer from time to time, to return all documents and other materials containing such Confidential Information or as directed by Employer, to destroy such documents and materials (and certify destruction thereof) containing Confidential Information.


No license, rights or authority, whether express or implied, in the Confidential Information is granted by Employer to Employee to use the Confidential Information other than in the manner and to the extent authorised by this Agreement.


Employee shall not be liable for the disclosure of any Confidential Information which :-

(a) was already in the public domain or which becomes so through no fault of the Employee;
(b) rightfully received from a third party without any obligation of confidentiality;
(c) is explicitly approved for release by written authorisation of Employer; and
(d) generally made available to third party by Employer without restriction on Employee.


Title to or the right to possess the Confidential Information as between the Parties shall remain in the Employer.


Employer makes no representation in respect to the Confidential Information and does not warrant any information furnished herewith, but shall furnish such in good faith to the best of its knowledge and ability. Without restricting the generality of the foregoing, Employer makes no representations or warranties, whether written or oral, statutory, express or implied with respect to the Confidential Information or any technical assistance which may be provided hereunder.


6.1 In the event of a breach or a threatened breach or intended breach of this Agreement by Employee, Employer in addition to any other rights and remedies available to it at law or in equity (except as otherwise limited by this Agreement), shall be entitled to injunctive relief, both preliminary and final, enjoining such breach or threatened or intended breach. Employer may terminate the employment of Employee without notice, indemnities and compensation if Employer considers a breach of the term(s) and conditions herein by the Employee and warrants a dismissal.

6.2 The failure of Employer to enforce any right resulting from breach of any provision of this Agreement shall not be deemed a waiver of any right relating to a subsequent breach of such provision or any other right hereunder.

6.3 Employee agrees to indemnify Employer against any loss, damage, cost or expense which it may suffer or incur by reason of any breach by Employee of the undertakings and obligations contained herein.

6.4 This Agreement is neither intended to nor shall it be construed as creating a joint venture, partnership or other form of business association between the Parties, nor an obligation to buy or sell products using or incorporating the Confidential Information, nor as creating an implied or express licence grant from either party to the other.

6.5 The obligation to protect the Confidential Information received by Employee prior to any termination, cancellation or expiration shall survive and continue for a period of ten (10) years after the termination, cancellation or expiration of this Agreement. This Agreement shall expire on the same date the Employee resigns as Manufacturing Technician (or any other position the Employee is holding at point of resignation) or the termination of his service by Employer.

6.6 Employee hereby undertakes not to engage in or be employed in any position with any organisation which is deemed to be a competitor engage in the development, research design, manufactures or otherwise of lithium polymer or plastics lithium ion batteries for a period of three (3) years from date of ceasation of employment.

6.7 This Agreement shall be governed by and interpreted in accordance with the laws of Malaysia and each party hereby submits to the jurisdiction of the Courts of Malaysia.

IN WITNESS WHEREOF the Parties hereto have hereunto caused this Agreement to be executed the day and year first above written.

Disclosing Party Receiving Party

By: __________________________ By: __________________________
I do not think you can blame your previous employer for paying you a salary lesser than you peers who already work there or recruited after you. No modern compensation system work that way. I'm sure you had signed an offer letter when you joined, and your remuneration details must have clearely mentioned in it. You had all the right decline the offer at that time if you weighed yourself more than they offered. I'm sure you were not asked to sign your offer at a gun point. Simply, that's what the price on your price tag at that point of time. You made a good move when you get a better offer, but do not blame others for your inferior bargaining capacity of a particular point of time. Everything in market work based on "demand vs supply theory".
  • I do not quite agree with vcalathif and giving my views.
  • When one joins a new organization he is generally not aware of the salary policy, salary standards and salaries of his colleagues. These things are always behind iron curtain under the guise of confidentiality.
  • In this case, employer did not offer any justification or reason for offering less salary. Rather he readily agreed to revise the salary once paper was put, which goes to show that somewhere employer had gone wrong.
  • Obviously offer was not signed at gun point, but why didn't employer have any reason or justification to offer on salary offered and why he agreed to revise it ?

Glad to be of help Amira, but also think about rest of the things I mentioned in the post.

Dear PLDhakal, What you posted looks like a standard Non Disclosure Agreement and that to what is legaly bound in Malaysia, I would like to see if there is any legaly bounded agreement for SALARY NON DISCLOSURE that is applicable in INDIA.

Dear vkokamthankar and mkjobhunt, As I aleady mentioned in my previous post there are many scales in an organisation in which a candidate is weighed before being made a job offer

"This process should be based on transparency rather than concealment.

There could be many differences among 2 individuals starting from Educational/Professional Qualifications, respective ranking of the institutes from where they have completed their education, level and tenure of experience to technical know how.

Apart from this their performance, skill and capabilities both technical and behavioural displayed during the interview, single most important point where an employee is judged before giving an offer."

I hope you will agree with me on the above mentioned.

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