Hi, is it necessary to have agreements such as "Confidentiality and Non-Disclosure Agreement" between the company and employee to be on stamp paper? What will happen if the agreement was on plain paper?
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From India, New Delhi
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From India, New Delhi
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Good Afternoon, Dear,
As per your above post, it depends on your company's terms and conditions. Yes, it is necessary to have agreements such as a "Confidentiality and Non-Disclosure Agreement" between the company and employee to be on stamp paper. If your agreement is on simple paper, it may not hold as much value. However, if you use the company letterhead for the same, it can serve as a substitute for stamp paper.
From India, Delhi
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As per your above post, it depends on your company's terms and conditions. Yes, it is necessary to have agreements such as a "Confidentiality and Non-Disclosure Agreement" between the company and employee to be on stamp paper. If your agreement is on simple paper, it may not hold as much value. However, if you use the company letterhead for the same, it can serve as a substitute for stamp paper.
From India, Delhi
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Dear madam,
Any agreement is enforceable in a court of law. Other than in writing, even if a claimant could prove in court that a verbal agreement was made, that is also enforceable.
Now, the difference is as follows:
Basic: If you choose to execute on plain paper or on a letterhead by the concerned parties only, again with witnesses, and non-partisan witnesses.
Further, you have the same choices as above on a stamp paper.
Still further, you have the same choices as above on a stamp paper and registering the agreement with the registrar. The enforceability becomes stronger. Your legal counsel could guide you further professionally, indicating that with each stronger option, you may be able to invoke more severe laws for a breach.
I hope this addresses your query to some extent.
Regards.
From India, Pune
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Any agreement is enforceable in a court of law. Other than in writing, even if a claimant could prove in court that a verbal agreement was made, that is also enforceable.
Now, the difference is as follows:
Basic: If you choose to execute on plain paper or on a letterhead by the concerned parties only, again with witnesses, and non-partisan witnesses.
Further, you have the same choices as above on a stamp paper.
Still further, you have the same choices as above on a stamp paper and registering the agreement with the registrar. The enforceability becomes stronger. Your legal counsel could guide you further professionally, indicating that with each stronger option, you may be able to invoke more severe laws for a breach.
I hope this addresses your query to some extent.
Regards.
From India, Pune
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Hello Garima,
HR RAES Services has really provided clarity. I believe it's clear to you. However, I would like to add one point here.
With each stage/step mentioned, the enforceability improves. The actual decision on which stage to use [basic/next/further-next] depends on the specific need. Typically, registering the document/agreement with a Registrar is reserved for very important ones, such as Sale Deeds, Agreements for land, Wills, etc.
Regards,
TS
From India, Hyderabad
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HR RAES Services has really provided clarity. I believe it's clear to you. However, I would like to add one point here.
With each stage/step mentioned, the enforceability improves. The actual decision on which stage to use [basic/next/further-next] depends on the specific need. Typically, registering the document/agreement with a Registrar is reserved for very important ones, such as Sale Deeds, Agreements for land, Wills, etc.
Regards,
TS
From India, Hyderabad
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It all depends on the position the employee is in. If you feel that the "Confidentiality and Non-Disclosure Agreement" is compulsory due to the job profile of the employee, then the guidelines given by HR RAES Services are perfectly apt.
Regards
From India, Hyderabad
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Regards
From India, Hyderabad
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Dear Garima,
In my opinion, confidentiality and non-disclosure agreements between employers and employees can be on the letterhead of the company and may still be enforceable in the court of law. If the nature of the information is too critical, then it would be preferable to have a witness on either side. If you feel it is necessary, you can still affix your company's seal.
Generally, the content of the confidentiality and non-disclosure agreements is vital to enforce them. I trust you have elaborate procedures for it. However, it would be wise to consult your legal counsel while drafting the agreement because they will be able to back you up in the event of trouble.
Regards,
M.V.KANNAN
From India, Madras
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In my opinion, confidentiality and non-disclosure agreements between employers and employees can be on the letterhead of the company and may still be enforceable in the court of law. If the nature of the information is too critical, then it would be preferable to have a witness on either side. If you feel it is necessary, you can still affix your company's seal.
Generally, the content of the confidentiality and non-disclosure agreements is vital to enforce them. I trust you have elaborate procedures for it. However, it would be wise to consult your legal counsel while drafting the agreement because they will be able to back you up in the event of trouble.
Regards,
M.V.KANNAN
From India, Madras
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Dear,
This Agreement in HR circles is called an NDA.
This Agreement holds value when entered into with employees who handle sensitive data of the employer. However, these days, it is signed with everyone without any specific purpose and has become a standard part of the joining kit.
It may be essential for white-collar jobs where employees manage sensitive data, but for blue-collar workers, it serves no purpose. For temporary employees, it would be meaningless as the employer understands the temporary nature of the employment, making it challenging to enforce. Employers often obtain it for their records to instill fear in employees' minds, although there is limited data available in HR circles regarding its enforcement. Case law on the subject mainly focuses on its enforcement in very senior positions.
Like any other agreement, it should be on stamp paper. If not signed on stamp paper, when enforcement is sought, the penalty can be paid.
The time limit for enforcing it is three years after the employee has left the organization.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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This Agreement in HR circles is called an NDA.
This Agreement holds value when entered into with employees who handle sensitive data of the employer. However, these days, it is signed with everyone without any specific purpose and has become a standard part of the joining kit.
It may be essential for white-collar jobs where employees manage sensitive data, but for blue-collar workers, it serves no purpose. For temporary employees, it would be meaningless as the employer understands the temporary nature of the employment, making it challenging to enforce. Employers often obtain it for their records to instill fear in employees' minds, although there is limited data available in HR circles regarding its enforcement. Case law on the subject mainly focuses on its enforcement in very senior positions.
Like any other agreement, it should be on stamp paper. If not signed on stamp paper, when enforcement is sought, the penalty can be paid.
The time limit for enforcing it is three years after the employee has left the organization.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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hi Can any body share me a adraft of such NDC between company and staff pls help regds Pradeepan
From India, Raipur
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From India, Raipur
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What is "Confidentiality and Non-Disclosure Agreement"? What is it generally used for? To prevent what? Regards Anoop PS. I hope my query does not digress from the original query.
From India, Delhi
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From India, Delhi
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Every agreement shall be on adequate stamp paper in absence document can not be accepted in evidence and with out proper stamp duty it can not be legally enforcable.
From India, Jamnagar
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From India, Jamnagar
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Please look at Rajan Associates' reply in this thread—your answer is there.
Hello Pradeepan—attaching a format that I received earlier from CiteHR itself. Needless to mention, CiteHR is a goldmine of information, with the members being a rare kind who 'SHARE'—mind you, I am not taking credit for this, since I got this from someone who posted the format earlier. Hope it's of use to you.
Regards,
TS
From India, Hyderabad
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Hello Pradeepan—attaching a format that I received earlier from CiteHR itself. Needless to mention, CiteHR is a goldmine of information, with the members being a rare kind who 'SHARE'—mind you, I am not taking credit for this, since I got this from someone who posted the format earlier. Hope it's of use to you.
Regards,
TS
From India, Hyderabad
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Good Afternoon Dear,
As per your above post, it depends on your company's terms and conditions. Yes, it is necessary to have agreements such as a "Confidentiality and Non-Disclosure Agreement" between the company and employees to be on stamp paper. If your agreement is on simple paper, it may not hold as much value. However, if you use the company letterhead for the same, it can serve as a substitute for stamp paper.
For more information, visit: [Confidentiality and Non-Disclosure Agreement](https://www.citehr.com/295018-confidentiality-non-disclosure-agreement.html#ixzz158kWLD1s)
From India, Mumbai
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As per your above post, it depends on your company's terms and conditions. Yes, it is necessary to have agreements such as a "Confidentiality and Non-Disclosure Agreement" between the company and employees to be on stamp paper. If your agreement is on simple paper, it may not hold as much value. However, if you use the company letterhead for the same, it can serve as a substitute for stamp paper.
For more information, visit: [Confidentiality and Non-Disclosure Agreement](https://www.citehr.com/295018-confidentiality-non-disclosure-agreement.html#ixzz158kWLD1s)
From India, Mumbai
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Iam afraid - an agreement on company’s letterhead may not substitute a stamp paper in law
From Mauritius, Vacoas
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From Mauritius, Vacoas
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Dear All,
Please do not be under the impression that if the NDA is not on stamp paper it has no value. It has value. This is because of Section 35 of The Indian Stamp Act, which reads as follows:
"S.35. Instruments not duly stamped inadmissible in evidence, etc.-- No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped: Provided that --
(a) any such instrument not being an instrument chargeable with a duty not exceeding ten naye paise only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion; (b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it; (c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped; (d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898; (d) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act."
Therefore, when a case is filed by paying the penalty, the Stamp Duty can be made good.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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Please do not be under the impression that if the NDA is not on stamp paper it has no value. It has value. This is because of Section 35 of The Indian Stamp Act, which reads as follows:
"S.35. Instruments not duly stamped inadmissible in evidence, etc.-- No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped: Provided that --
(a) any such instrument not being an instrument chargeable with a duty not exceeding ten naye paise only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion; (b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it; (c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped; (d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898; (d) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act."
Therefore, when a case is filed by paying the penalty, the Stamp Duty can be made good.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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This agreement is not necessary to be executed on stamp paper. It may be executed on plain paper, but for its enforceability, it is necessary that the same is signed by both parties on each page and be attested by two witnesses.
Regards,
Gaurav Bansal
Advocate
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
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Regards,
Gaurav Bansal
Advocate
[Phone Number Removed For Privacy Reasons]
From India, New Delhi
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