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This is an important issue for many employers, particularly with senior staff contracts.  Examples of clauses are given below:

 

Clause 1  Confidentiality

1   You will not (except in the proper course of your duties hereunder) use or divulge or communicate to any person any confidential information which belongs to the Company or any supplier of the Company.  Such confidential information includes but is not limited to information concerning the business, accounts, finance or contractual arrangements, market or production research, product development, information about goods and services brought in from suppliers and information about customers of the Company which may come to your knowledge and whether or not received by you directly or indirectly during the course of your employment with the Company.   

2    On termination of your employment for any reason, you are required to deliver, to the person to whom you are responsible, all documents relating to the Company and not keep any copies of the same.    

3    You will not to induce or seek to induce by any means involving the disclosure or use of confidential information any customer to cease dealing with the Company or to restrict or vary the terms upon which they deal with the Company.    

4    The obligations under this section shall continue without limit of time notwithstanding the termination of your employment under this Agreement.   

 

Clause 2  Duty of Care and Confidentiality


1           The Manager shall take care of all Company property under his control.  The Manager shall not improperly use or divulge any confidential information relating to the affairs or business of the Company or any other confidential information he may have received or obtained while in the service of the Company.

 

2           The Manager further agrees not to induce or seek to induce by any means involving the disclosure or use of confidential information any customer to cease dealing with the Company or to restrict or vary the terms upon which they deal with the Company.

 

The obligations set out in 1 and 2 shall continue without limit of time notwithstanding the termination of the employment of the Manager under this Agreement.  

 

An example standard clause is included in the sample Managers' Contract.