Can We Legally Require All Employees to Sign an NDA in Our Updated Policy?

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 the 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

Communicating Changes in Service Conditions

Normally, any change in the conditions of service should be communicated to the employees as per Section 9A of the Industrial Disputes Act. As salespersons do come under the ID Act, it is advisable to address this legally. However, if you do not wish to pursue this as a legal matter, you can send a communication to all employees, informing them that no data, drawings, brochures, etc., should be shared with others. Employees should sign a Non-Disclosure Agreement (NDA). If any employee refuses to sign, speak with them individually to understand their reasons.

Handling Non-Compliance with NDA

It can be presumed that an employee not signing the NDA may disclose information, and such an employee should be considered for termination. Although immediate action is not necessary, you should make them aware that by not signing the NDA, the employer perceives a risk of information disclosure, which is intolerable.