Nowadays, it is commonplace for anyone to hire freelancers or independent workers, for one primary reason: the work quality is great and it satisfies the hirer’s standards—all these without having to bear the cost of full-time hiring.
However, when you do the hiring, it’s essential to know how to create an NDA between you and the freelancer; to make sure that your information will not be shared elsewhere, warding off unexpected damages to your business.
What is an NDA?
Non-Disclosure Agreement, or as known as NDA, is a type of work-related contract which binds both parties of the business to the commitment of keeping the work-related information secret to other parties. Any leaking of information specified in the agreement to an outside third party is entitled to legal protection.
A proper NDA shall include the following details inside it:
– The date and time in which both parties have created the agreement
– The detail concerning the entity and the freelancer
– The purpose of the agreement
– The definitions of the information to be kept confidential
– The permissible scope of disclosure for said confidential information
– The legally binding period of the agreement
– Any relevant conditions, for example, punitive measures in the of case of agreement breaching of either party
The basic principle for creating an NDA lies in both parties thoroughly reading all the details and conditions specified in the agreement and committing to it. If there are any questions or fairness issues, they should be raised to another party immediately to make appropriate amendments before both parties sign it off.
The NDA should be created in two versions, each to be kept by each party. To make things more official, you will also need identity verification from both parties, for example, with an ID card and/or VAT license, and finally, signatures of witnesses.
The importance of an NDA when hiring a freelancer.
From the article above, it should be clear that NDAs are created to affirm both parties’ confidence and trust in one another in carrying out a particular job. It is the legally binding reassurance that both parties will be committed in not disclosing confidential information to outside parties, such as the product’s formula, business model, software codes, and more.
During work in progress, if any party breaches the agreement by disclosing such information, the party will be subject to the punishment mentioned in the agreement, such as a fine, or receiving civil or criminal lawsuit.
Now that you know more about what you should do as a business owner, you can put it into use. For a plethora of jobs, having the NDA between you and the freelancers can enhance your business’ smoothness and work quality. Most importantly, it can be used to protect and prevent confidential information from being shared externally and subsequently impacting your business in the future.