I would like to make a Non-Disclosure agreement with the employees in the stamp paper.

What should be the value of stamp paper 100 or 500?

What is the difference between these 2 from the point of Law in terms acceptability?

Can put all employee's name on one stamp paper or each employee will have separate stamp paper.
Kindly advise if possible.


From India

The value of stamp paper would vary from state to state and depends on the applicable state rules. You go to any stamp vendor of the locality and he will guide. It is better to make each employee to buy the stamp paper employees as the name of the buyer as well as the parties to the agreement and purpose have to be mentioned on the backside of the stamp paper.
Legally speaking, it does not make any difference whether agreement is in stamp paper or on ordinary piece of paper, (even oral agreements are legal and valid as per the Indian Contract Act 1872). Getting the signature on stamp paper would definitely indicate some importance being attached to the employees' obligations

From India, Mumbai
Dear Suresh,

You have asked a query on the non-disclosure agreement, especially the value of the bond that you would like to have with the employee. However, please confirm to us the nature of your industry, the type of work that the employees will do, what kind of sensitive data they will have in their possession etc.

Generally, a paragraph is included in the appointment letter on the non-disclosure of the information. Why is a paragraph in the appointment letter not sufficient? What is the need to have an exclusive NDA over and above the contents of the appointment letter?

Furthermore, many IT companies too obtain NDA from their employees. However, rather than relying on just the NDA, they also create an IT infrastructure to avoid data leakage. Have you created a similar IT infrastructure to protect your data?

Anyway, earlier there was a query on the inclusion of the NDA clause in the appointment letter. You may click here to refer to it.

A senior member has given the first reply to the query. I agree with him that an exclusive NDA makes the issue of data security preponderant and also acts as a deterrent against even inadvertent leakage of information. In contrast, though an appointment letter is a legally valid contract under the provisions of the Indian Contract Act, 1872, the contents of it may not be viewed with due sensitivity.


Dinesh Divekar

From India, Bangalore
As mentioned by seniors there is no need to have a separate NDA signed on these stamp paper as it will only add up to your stationery cost. NDA signed by the employee on your company's letterhead should be good enough to initiate any legal action. Juts be sure to check his specimen/signature is correct & it can verified through PAN card.
From India, Thana
For the purpose of creating responsibility and obligation the second party(employee) regarding confidentiality of the information, innovation, design, technology or any special knowledge of a particular domain, first party (employer) can enter into a Non-Disclosure Agreement (NDA) on Rs. 100 value non judicial stamp paper apart from mentioning in the offer of appointment as general terms and conditions of offer and service.
From India, Lucknow

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