Question 1

What is an Employee Exit Non Disclosure Agreement

Accepted Answer

The Employee Exit Non Disclosure Agreement is a critical document used in the Philippines when employees leave an organization, regardless of the departure circumstances. It serves to protect confidential information, trade secrets, and intellectual property that the employee had access to during their employment. This document is particularly important in the Philippine context, where it must comply with the Data Privacy Act of 2012, the Labor Code of the Philippines, and relevant intellectual property laws. The agreement typically includes specific provisions about the handling of confidential information, return of company property, and ongoing obligations post-employment. It's essential for maintaining business security and competitive advantage, while also ensuring compliance with local regulations regarding employee rights and data protection.

Question 2

What sections should be included in an Employee Exit Non Disclosure Agreement

Accepted Answer

1. Parties: Identification of the employer and the departing employee, including their complete legal names and addresses. 2. Background: Brief context of the employment relationship, reason for separation, and purpose of the agreement. 3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Trade Secrets', and 'Intellectual Property'. 4. Scope of Confidential Information: Comprehensive description of what constitutes confidential information under the agreement. 5. Confidentiality Obligations: Detailed obligations regarding non-disclosure, non-use, and protection of confidential information. 6. Return of Company Property: Requirements for returning all company documents, data, and materials containing confidential information. 7. Duration of Obligations: Time period for which the confidentiality obligations remain in effect. 8. Breach and Remedies: Consequences of breaching the agreement and available legal remedies. 9. General Provisions: Standard clauses including governing law, jurisdiction, and severability. 10. Execution: Signature blocks and execution details.

Question 3

What sections are optional to include in an Employee Exit Non Disclosure Agreement

Accepted Answer

1. Non-Solicitation: Prohibitions on soliciting company employees or customers, included when the employee had significant client contact or management responsibilities. 2. Intellectual Property Assignment: Additional provisions for employees who created IP during their employment, ensuring all rights are properly transferred. 3. Data Privacy Compliance: Specific provisions aligned with the Data Privacy Act of 2012, required when dealing with personal data processors. 4. Social Media and Digital Platforms: Special provisions for employees with access to company social media accounts or digital assets. 5. International Transfer of Data: Additional provisions for multinational companies or when confidential information may cross borders. 6. Exit Interview Acknowledgment: Reference to and confirmation of exit interview proceedings, included when formal exit interviews are conducted.

Question 4

What schedules should be included in an Employee Exit Non Disclosure Agreement

Accepted Answer

1. Schedule A - List of Confidential Information: Detailed inventory of specific confidential information, trade secrets, and proprietary information the employee had access to. 2. Schedule B - Company Property Checklist: Itemized list of physical and digital assets to be returned by the employee. 3. Schedule C - Specific Projects and Sensitive Information: List of specific projects, clients, or sensitive information the employee was involved with. 4. Appendix 1 - Data Privacy Notice: Detailed notice regarding the handling of personal data in compliance with the Data Privacy Act. 5. Appendix 2 - Exit Clearance Form: Standard form confirming return of company property and completion of exit procedures.

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