How to Introduce a Conflict of Interest Policy Addendum to Employment Contracts?

My management would like to insert a Policy of Conflict of Interest into the existing employment contract. They want the employee to sign an addendum contract for this policy. Can anyone help with how to proceed on this?

Dear Vivian, First and foremost, you need to be clear about the meanings of a few definitions. My clarification is as below:

1. Addendum is used to add or delete certain clauses from a contract agreement. While the grammatical use of this word might be correct, this phrase is not used to inform the change in conditions of employment.

2. You cannot insert a policy in the contract agreement.

3. When an employer issues an appointment letter, it is a contract under the provisions of the Indian Contract Act, 1872. Nevertheless, contracts are used to do business with contractors, service providers, etc. When dealing with employees, the term used is conditions of employment.

4. For your convenience, issue a supplementary letter to each employee about conflict of interest. Take their signature and retain the delicate copy in the respective employee's file. However, it depends on the strength of employees. If the strength of employees is in thousands, then you may just obtain acknowledgment from each employee for having "read and understood" the contents of the policy.

Thanks,

Dinesh Divekar

Dear Dinesh,

Thank you for your reply. It will be easier if I phrase it as a "Non-Disclosure Agreement" and issue it to all employees for signature.

Regards,
Vivian