How Should We Handle Senior Employees Refusing to Sign NDAs in Real Estate?

Dear Professionals,

In our company, we are implementing a process to have employees sign an NDA agreement. It is mandatory for both new and existing employees. However, we are facing resistance from some senior employees who have refused to sign. When we asked them to comply, they threatened to resign. Our company operates in the Sales and Marketing sector within real estate, making our database and marketing materials crucial assets.

If we were to send the NDA agreement via email and require adherence even after an employee's departure, would this be considered ethical according to the law? Your guidance on this matter would be greatly appreciated.

Thanks & regards,
Dinesh

Hi, First of all, the validity of an NDA itself is questionable if it is forcibly obtained.

NDA for New Employees

An NDA for new employees makes some sense. Whether to sign or not is their call, and if they don't sign, they will not be able to join your organization.

NDA for Existing Employees

However, for existing employees who have already joined you on mutually agreed terms and conditions, you cannot force them to sign, as that would be illegal. On mutual discussion, if they agree to sign, then that will be okay.

Revising the terms and conditions of employment after joining requires the consent of employees.

Sending an NDA through email will not bind them, and it will be an act of unilateral decision by the employer.

Dear Friend,

The management wants employees to sign an NDA agreement if they want to work here. Two perspectives are emerging: most employees have signed, but a few have refused and even threatened to quit. I don't know what prompted the management to adopt the NDA. Was there a breach of the NDA in the recent past, or is it just a whimsical idea of a layman?

In my view, if there are any NDA-related issues, then all employees should sign. If some people are refusing, ask for the reasons behind their denial. Sometimes, people object to certain clauses due to lack of clarity, bias on the management's part, or even absurd points. If their denial is baseless or lacks substance, it may be necessary to ask those employees to resign.

Thank you.

You need not be deterred by the threat of resignation. As such, the industry sector is facing a recession, and job hunting is not easy. When there is a policy for having an NDA agreement, a few employees cannot threaten and blackmail the organization. These fellows should be confronted and made to fall in line.

Dear Professionals,

Thank you very much for your guidance on this thread. I seek more guidance on it.

Amending Company Policy for NDA Compliance

If we make an amendment in our company policy and add a clause that states, "Being a sales and marketing company, data security is essential to prevent business loss from our competitors. Hence, it is compulsory for all employees working on company payroll to sign an NDA agreement. If anybody refuses to sign it, the company has the right to terminate their employment or withhold their gratuity amount or full and final settlement based on it."

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 action? Please advise.