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Employer Non Disclosure Agreement Template for Malaysia

A comprehensive non-disclosure agreement governed by Malaysian law, designed to protect an employer's confidential information, trade secrets, and proprietary data when shared with employees during the course of employment. The agreement complies with Malaysian employment laws, including the Employment Act 1955 and Personal Data Protection Act 2010, while incorporating common law principles regarding trade secrets protection. It establishes clear obligations for maintaining confidentiality, handling sensitive information, and specifies remedies for breach, all within the Malaysian legal framework.

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What is a Employer Non Disclosure Agreement?

In today's competitive business environment, companies need robust protection for their confidential information and trade secrets. This Employer Non Disclosure Agreement, governed by Malaysian law, is designed for use at the commencement of or during employment relationships where employees will have access to sensitive company information. It covers various types of confidential information including trade secrets, proprietary technology, customer data, business strategies, and intellectual property. The agreement ensures compliance with Malaysian legislation including the Employment Act 1955, Personal Data Protection Act 2010, and common law principles while providing employers with enforceable protections against unauthorized disclosure or use of confidential information by employees.

What sections should be included in a Employer Non Disclosure Agreement?

1. Parties: Identifies the employer and employee, including full legal names and addresses

2. Background: Sets out the context of the agreement and the employment relationship

3. Definitions: Defines key terms including 'Confidential Information', 'Trade Secrets', 'Intellectual Property', and other relevant terms

4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement

5. Confidentiality Obligations: Core obligations regarding non-disclosure, non-use, and protection of confidential information

6. Security Measures: Specific measures the employee must take to protect confidential information

7. Return of Confidential Information: Requirements for returning or destroying confidential information upon termination

8. Duration of Obligations: Specifies how long the confidentiality obligations remain in effect

9. Breach and Remedies: Consequences of breaching the agreement and available remedies

10. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Employer Non Disclosure Agreement?

1. Third Party Information: Additional provisions for handling confidential information belonging to clients, customers, or business partners

2. Intellectual Property Rights: Specific provisions regarding IP rights when the employee's role involves creation or handling of IP

3. Non-Competition: Restrictions on competing activities, if appropriate and enforceable under Malaysian law

4. Non-Solicitation: Restrictions on soliciting employees or customers, if relevant to the role

5. Data Protection Compliance: Specific obligations regarding personal data handling under PDPA

6. International Transfer of Information: Required for multinational companies or when information may be transferred overseas

7. Social Media and Digital Communications: Special provisions for handling confidential information in digital form and on social media

What schedules should be included in a Employer Non Disclosure Agreement?

1. Schedule 1: Categories of Confidential Information: Detailed list of specific types of confidential information covered

2. Schedule 2: Security Protocols: Detailed procedures for handling and protecting confidential information

3. Schedule 3: Approved Third Party Recipients: List of authorized third parties who may receive confidential information

4. Appendix A: Acknowledgment Form: Form for employee to sign acknowledging receipt and understanding of confidential information

5. Appendix B: Information Return Checklist: Checklist for returning or destroying confidential information upon termination

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

Malaysia

Cost

Free to use

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