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Client Confidentiality Clause Template for England and Wales

A Client Confidentiality Clause is a legally binding provision under English and Welsh law that establishes obligations to protect sensitive information shared during a business relationship. It defines what constitutes confidential information, outlines the scope of confidentiality obligations, specifies permitted uses and disclosures, and establishes procedures for handling confidential information. The clause is designed to comply with UK data protection laws, including the Data Protection Act 2018 and UK GDPR.

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What is a Client Confidentiality Clause?

The Client Confidentiality Clause is essential in professional relationships where sensitive information is shared. It provides legal protection under English and Welsh law for confidential business information, trade secrets, and personal data. This clause is typically incorporated into service agreements, professional engagement letters, or standalone confidentiality agreements. It ensures compliance with UK data protection legislation while establishing clear obligations and responsibilities for handling confidential information. The clause is particularly crucial in regulated industries where information security is paramount.

What sections should be included in a Client Confidentiality Clause?

1. Definition of Confidential Information: Clear specification of what constitutes confidential information, including trade secrets, business methods, client data, and other protected information

2. Scope of Confidentiality: Details of the confidentiality obligations, including use restrictions, security measures, and handling requirements

3. Duration of Obligations: Specification of the time period for which confidentiality obligations remain in force, including any surviving obligations

4. Permitted Disclosures: Circumstances under which confidential information can be disclosed, including legal requirements and authorized recipients

5. Return/Destruction of Information: Requirements for handling confidential information after the agreement ends, including certification of destruction

What sections are optional to include in a Client Confidentiality Clause?

1. Data Protection Compliance: Additional provisions for compliance with UK GDPR and Data Protection Act 2018 when personal data is involved

2. Industry-Specific Requirements: Specific confidentiality requirements for regulated industries such as financial services, healthcare, or legal services

3. International Transfer Provisions: Provisions governing the transfer of confidential information outside the UK, including necessary safeguards and compliance requirements

What schedules should be included in a Client Confidentiality Clause?

1. Schedule 1 - Types of Confidential Information: Detailed categorization and examples of confidential information covered by the agreement

2. Schedule 2 - Approved Security Measures: Specific technical and organizational security measures required for protecting confidential information

3. Schedule 3 - Authorized Recipients: List of individuals, roles, or entities authorized to access the confidential information and their respective access levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Cost

Free to use

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