Dear Professionals,
If we make an amendment to our company policy and add a clause stating, "Being a sales and marketing company, data security is essential to prevent business loss due to customer data leakages to our competitors. Can we make it compulsory for all employees working on company payroll to sign an NDA agreement? If an employee refuses to sign it, does the company have the right to terminate their employment or withhold their gratuity amount or full and final settlement?"
Can we include the above line in our company policy? Is this step mandatory for all employees even if someone refuses to sign it? Is it a legal requirement? Please advise.
Thanks & Regards,
Dinesh
From India, Nashik
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If we make an amendment to our company policy and add a clause stating, "Being a sales and marketing company, data security is essential to prevent business loss due to customer data leakages to our competitors. Can we make it compulsory for all employees working on company payroll to sign an NDA agreement? If an employee refuses to sign it, does the company have the right to terminate their employment or withhold their gratuity amount or full and final settlement?"
Can we include the above line in our company policy? Is this step mandatory for all employees even if someone refuses to sign it? Is it a legal requirement? Please advise.
Thanks & Regards,
Dinesh
From India, Nashik
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Normally, any change in the conditions of service should be communicated to the employees as per Section 9A of the Industrial Disputes Act. As the salespersons do come under the ID Act, it is good if you take it up legally. At the same time, if you do not wish to cover the processes as a legal job, then you can send a communication to all informing that no data, drawings, brochures, etc., should be shared with others, and the employees should sign a Non-Disclosure Agreement. If any employee is not signing it, take them separately and ask why they do not want to sign it. Obviously, it can be presumed that an employee not signing the NDA will disclose the information, and such an employee should be sent out of the organization. Though you should not do it immediately, you can wait for an opportunity and then make a decision. But for now, you should make them aware that by not signing the NDA, the impression the employer has collected is that the employee will disclose the information, and that cannot be tolerated.
From India, Kannur
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4490From India, Kannur
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Employee reference policy.doc