How Long Should Confidentiality Last After Leaving a Job? Seeking Advice on Time Limits

Dear All,

In our organization, we are changing the format of the appointment letter. In this letter, we would like to add a point that the employee needs to maintain confidentiality even after the termination or resignation of the employment. Now, my doubt is whether there is any stipulated time period for that particular point. Can anybody advise me on the same?

Regards,
Sreedevi Poduri

Hello Sreedevi,

The period would vary from 2 years to 10 years, depending on your business nature, product nature, service area, and the critical factors involved with it. However, the basic issue would be how you or HR are going to monitor or track it. Any employee can reveal the information once they are out of the company or relieved from company services.

With best regards,
Vaishalee Parkhi

Dear Sridevi,

The confidentiality clause will get terminated along with the termination of the employment contract. Hence, it is very important to mention that the confidentiality clause will survive the termination of the employment contract.

Further, you can require employees leaving the company to enter into a new confidentiality agreement as part of the company's exit process. This agreement would be applicable to all employees across the company.

Regards, A&B

Dear Sreedevi,

An appointment letter is a contract between an employer and an employee. This relationship ceases when the contract comes to an end. Apart from the legal aspect, it is crucial to understand how to enforce the terms and conditions of the contract. After an employee leaves the job, how can you prove or identify if they have violated the confidentiality clause?

Therefore, I recommend not going too far in designing the terms of appointment.

Thanks,

Dinesh Divekar