Confidentiality is the foundation element of many professionals, specifically those covered by legal regulations regarding privileged communication, such as lawyers and doctors. However, human resource professionals are subject to a somewhat more complex set of rules and expectations concerning confidentiality in the workplace. Since human resource representatives are not bound legally by strict privileged communication guidelines, situations may arise in which a human resource professional may have to weigh their responsibilities to the employees, management, and the law to contemplate on whether to disclose certain confidential information.
The HR department of any company has all the details of the employees working there. They are also privy to the different strategies that the company may be looking to introduce in the workplace. It is, therefore, of key importance that the employees in such departments do not disclose such details to other people of the organization. To do this efficiently and effectively, every person working in the HR department should be subjected to a human resource confidentiality agreement.
There are several uses and purposes of a confidentiality agreement. A company makes use of the confidentiality agreement to maintain the secrecy of data and confidential information. Information ultimate valuable asset of any organization. It is compulsory for a business to have control over its access to use as contractual agreements in protecting itself against unauthorized disclosure.
Some of the uses of a human resource confidentiality agreement include:
- To safeguard employee salary secrets
- To maintain the details of individual employee performance
- To make sure that the employee terms of service are not disclosed
- To protect the medical details of employees
- To prevent unauthorized or untimely disclosure of any impending strategy changes and introductions in the company
All the different types of information, including customer lists, private data, financial information, and product development plans, must also be kept confidential. The sole objective of a confidentiality agreement id to help in the control of the dissemination of confidential information by other parties and employees. A human resource confidentiality agreement is used to evaluate the damage that may result from unauthorized or untimely disclosure of sensitive information and data in contracts to any remedies that may be available.
When Does One Need a Human Resource Confidentiality Agreement?
All businesses need their confidential information maintained as such, and to do this, they may require that all their employees sign a confidentiality agreement before gaining access to such information. Confidentiality agreements bind both the employer and the employee to ensuring that the confidentiality of certain information such as trade secrets is maintained.
Human resource confidentiality agreements are also important when issuing employee performance incentives. Performance incentives in the company are usually dished out based on the performance of the employees. The HR department usually keeps tabs on individual performances. Revealing such information could cause rivalry among the workforce hence the reason why this needs to be kept under wrap. Signing a performance HR confidentiality agreement binds the HR department legally to prevent the revelation of employee performances.
Other than performance incentives, confidentiality agreements usually come in handy when handling employee medical reimbursements. Since an employee’s medical history are usually very personal, and they may not be very keen on discussing such with their colleagues, the human resource department is made to sign a confidentiality agreement that swears them to secrecy.
A human resource confidentiality agreement is also used when a company is looking to introduce new strategies like salary revision, target rise, and new policies in the company. The human resource department is normally given access to such information well before the employees. By ensuring that the human resource department signs a confidentiality agreement, the company ensures that the information does not leak out to the employees before the stipulated time.
Benefits of Using a Human Resource Confidentiality Agreement
- A confidentiality agreement clearly outlines the consequences in case of a breach of the agreement
- A confidentiality agreement can be used to give a clear indication as to what data or information is to be considered as confidential
- The agreement can be written keeping the company requirements
- The document can be used as proof in a court of law
How to write a Human Resource Confidentiality Agreement
Writing a human resource agreement needs to be both imperative and informative. Since this is a legal agreement as one of the most important documents that any serious organization must have, it must be written in an authoritative form yet simple, professional, and understandable. You must provide the definition of what is to be considered as confidential, be specific on the confidential agreements, either mutual or non-mutual ~to find out more about mutual and non-mutual confidentiality agreements, read our basic confidentiality agreement article here~ the content must also include the number of provisions and take note that confidentiality agreements are often paired with non-complete agreements.
For the finalization of the HR confidentiality agreement, both parties in the agreement must sign with the effective date.
To obtain more information on how to write an effective human resource confidentiality agreement, read our basic confidentiality agreement, which also has a basic guide to drafting an easy to use a template and a free sample that you can customize to fit your specific requirements
You can find below various templates of our human resources confidentiality samples.
Free Samples & Templates