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Employee Confidentiality And Proprietary Rights Agreement for the United Kingdom

Employee Confidentiality And Proprietary Rights Agreement Template for England and Wales

This agreement is a legally binding document under English and Welsh law that protects an employer's confidential information and intellectual property rights in relation to their employees. It establishes the obligations of employees regarding the handling of sensitive information, defines ownership of intellectual property created during employment, and sets out post-employment obligations. The agreement complies with UK employment law, data protection regulations, and intellectual property legislation.

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Employee Confidentiality And Proprietary Rights Agreement

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What is a Employee Confidentiality And Proprietary Rights Agreement?

The Employee Confidentiality And Proprietary Rights Agreement is essential for businesses operating in England and Wales who need to protect their confidential information and intellectual property. This document should be implemented at the start of employment relationships, particularly where employees will have access to sensitive information or will be creating intellectual property. It provides comprehensive coverage of confidentiality obligations, intellectual property assignments, and related employee duties, all while ensuring compliance with UK employment law and regulations.

What sections should be included in a Employee Confidentiality And Proprietary Rights Agreement?

1. Parties: Identifies the employer and employee parties to the agreement

2. Background: Explains context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement including Confidential Information, Intellectual Property Rights, and Work Product

4. Confidential Information: Defines scope of confidential information and obligations regarding non-disclosure, protection, and authorized use

5. Intellectual Property Rights: Addresses ownership and assignment of IP created during employment, including inventions, works, and designs

6. Employee Obligations: Details specific duties regarding confidentiality and IP protection, including reporting requirements and cooperation

7. Return of Materials: Requirements for returning confidential materials, devices, and documents upon termination

8. Duration and Survival: Specifies how long obligations continue after employment ends and which provisions survive termination

What sections are optional to include in a Employee Confidentiality And Proprietary Rights Agreement?

1. Non-Competition: Restrictions on competing activities post-employment, typically for senior employees or those with access to sensitive information

2. Third Party Rights: Rights of group companies to enforce agreement, relevant when employer is part of larger corporate group

3. Data Protection: Specific provisions about personal data handling and compliance with UK GDPR

4. Moral Rights: Waiver or assertion of moral rights in created works, particularly relevant for creative industries

What schedules should be included in a Employee Confidentiality And Proprietary Rights Agreement?

1. Schedule 1 - List of Confidential Information: Detailed examples and categories of company's confidential information and trade secrets

2. Schedule 2 - Existing IP: Schedule of employee's pre-existing IP rights excluded from assignment

3. Schedule 3 - Company Policies: Reference to relevant company policies on confidentiality, IP, and data protection

4. Schedule 4 - Approved Activities: List of any pre-approved external activities or commitments of the employee

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Cost

Free to use
Relevant legal definitions





























Clauses





























Industries

Trade Secrets (Enforcement, etc.) Regulations 2018: Key legislation implementing the EU Trade Secrets Directive, defining trade secrets and establishing their protection framework in UK law

Copyright, Designs and Patents Act 1988: Primary legislation governing intellectual property rights, specifically addressing ownership of works created during employment and moral rights

Data Protection Act 2018 and UK GDPR: Legislation regulating the handling of personal data and ensuring confidentiality obligations align with data protection principles

Employment Rights Act 1996: Framework legislation for employment relationships and determining the reasonableness of contractual restrictions

Computer Programs Regulations 1992: Specific regulations governing restrictions on reverse engineering, copying, and adapting of computer programs, relevant for IT-related confidential information

Common Law Principles: Established legal principles covering confidentiality, restraint of trade, fiduciary duties, and implied terms in employment contracts

Equality Act 2010: Legislation ensuring that contractual restrictions do not discriminate against protected characteristics

Patents Act 1977: Legislation governing patent rights, particularly relevant for invention rights in the employment context

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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