This agreement is entered between an employer and an employee that outlines confidential material, knowledge, or information that the parties wish to share with one another
for certain purposes, but wish to restrict access to or by third parties.
Non disclosure agreement is needed where confidential information is shared between the parties. To prevent such confidential data to be given out to a third party, the
employer gets an NDA signed by the employee being hired.
This agreement can be made legally enforceable by getting it printed on a non-judicial stamp paper or on the organisation's letterhead duly signed by both the concerned parties in the agreement.
You may use it if you are hiring an employee and want to prevent him/her from disclosing any confidential information of the organisation to a third party.