Non-Disparagement Agreement

This agreement protects the company from those employees who may speak negatively about the company during the course of employment or post employment. It is specifically entered into in case you as an employer need to prevent the employees from speaking negatively about the company. A non disparagement employment agreement signed between the employer and the employee defines the employee's position and duties in the company along with barring the employee from defaming the company.

To make this agreement legally enforceable, the concerned parties in the agreement have an option of either getting the agreement made on a company letterhead or a non-judicial stamp paper. It is advisable use a non-judicial stamp paper for better protection against any legal issue which may arise in future though getting it done on organization's letterhead is sufficient. Make sure the agreement is duly signed by both the concerned parties. You as an employer may use it if you are hiring a new employee and wish to set out the terms and details of the employment along with safeguarding your organization's reputation by preventing him/her to speak negatively of your company.

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Frequently Asked Questions

This agreement protects the company from those employees who may speak negatively about the company during the course of employment or post employment. It is specifically entered into in case you as an employer need to prevent the employees from speaking negatively about the company. A non disparagement employment agreement signed between the employer and the employee defines the employee's position and duties in the company along with barring the employee from defaming the company.
Who needs this agreement and why?
To make this agreement legally enforceable, the concerned parties in the agreement have an option of either getting the agreement made on a company letterhead or a non-judicial stamp paper. It is advisable use a non-judicial stamp paper for better protection against any legal issue which may arise in future though getting it done on organization's letterhead is sufficient. Make sure the agreement is duly signed by both the concerned parties. You as an employer may use it if you are hiring a new employee and wish to set out the terms and details of the employment along with safeguarding your organization's reputation by preventing him/her to speak negatively of your company.
What is the use of Annexure?
The following are all the major clauses included in this agreement:
  1. Employment- outlines the conditions of employment to be followed by the employee.
  2. Salary and other Remunerations- details of the salary and considerations of the employee.
  3. Perquisites, Benefits and other Considerations- details all the benefits that would be available to the employee including reimbursement.
  4. Leaves- provides the structure of leaves including paid leaves. Also, it specifies the permission required.
  5. Terms & Conditions and general duties- explains the basic terms and conditions that the employee must follow. Additionally, it also specifies the duties of the employee.
  6. Hours of work- mentions the normal working hours of the employment.
  7. Overtime- states that the employee would be compensated for working overtime.
  8. Probation- detailed explanation about the probationary period.
  9. Non- Competition- clause for notice period to the employee to not compete directly/ indirectly against the company.
  10. Termination of Contract- consideration to the employee by the company in case it ends his/her services.
  11. Return of Employer's Property- ensures that the property of the employer would be returned on termination.
  12. Confidential Information- details the information that is to be classified as confidential.
  13. Non- Disparagement- ensures that the employee would not take any action that would harm the reputation of the employer adversely.
  14. Inventions, Designs, Copyright and Intellectual property- makes employer the owner of any invention by the employee that relates to the employment.
  15. Dispute Resolution- clause to settle disputes.
  16. General Provisions- contains provisions regarding modification to the agreement, waiver, severability, attorney's fees, counterparts etc.
These are a few terms which might be useful to read about for a better understanding of this agreement:
  1. Disparagement-the mentioning of or discussion of someone in a negative light, including criticism, insults, or dishonest and mean spirited remarks.
  2. Remuneration-the money paid for a work or service.
  3. Perquisites-a benefit or privilege given to the employee on account of their position. Commonly called "Perks" in common parlance.
  4. Probation-refers to the period after joining when the employee's performance will not be appraised.
  5. Appraisal-is the review, analysis and evaluation of an employee's work and performance.
  6. Confidential Information-is the information shared by the employer with the employee, and includes new and useful business opportunities, trade secrets, business entity formation, structuring, tax planning and proprietary, technical, or business data, along with any other other privileged information. This is the information that is not to be disclosed.
  7. Waiver-the voluntary surrender of a right.
  8. Counterparts-
  9. simply refer to different copies of the agreement.
  10. Severability-refers to the concept that if parts of the contract are held to be illegal or otherwise unenforceable, the remainder of the contract shall still apply.
What are the legal jargons used in this agreement?
Kindly note that for making this agreement even more detailed, we have provided an Annexure section in the end. The two annexures components gets filled according to the responses of the user. Annexure I should contain details of the salary and allowances (if any) provided to the employee by the company. Annexure II can be used to give a detailed description about the duties and responsibilities of the employee. In case you have any doubts regarding the annexure, you can always drop us a query on [email protected] within 15 days of receiving this agreement.
How to use this agreement?
The following are all the major clauses included in this agreement:
  1. Employment- outlines the conditions of employment to be followed by the employee.
  2. Salary and other Remunerations- details of the salary and considerations of the employee.
  3. Perquisites, Benefits and other Considerations- details all the benefits that would be available to the employee including reimbursement.
  4. Leaves- provides the structure of leaves including paid leaves. Also, it specifies the permission required.
  5. Terms & Conditions and general duties- explains the basic terms and conditions that the employee must follow. Additionally, it also specifies the duties of the employee.
  6. Hours of work- mentions the normal working hours of the employment.
  7. Overtime- states that the employee would be compensated for working overtime.
  8. Probation- detailed explanation about the probationary period.
  9. Non- Competition- clause for notice period to the employee to not compete directly/ indirectly against the company.
  10. Termination of Contract- consideration to the employee by the company in case it ends his/her services.
  11. Return of Employer's Property- ensures that the property of the employer would be returned on termination.
  12. Confidential Information- details the information that is to be classified as confidential.
  13. Non- Disparagement- ensures that the employee would not take any action that would harm the reputation of the employer adversely.
  14. Inventions, Designs, Copyright and Intellectual property- makes employer the owner of any invention by the employee that relates to the employment.
  15. Dispute Resolution- clause to settle disputes.
  16. General Provisions- contains provisions regarding modification to the agreement, waiver, severability, attorney's fees, counterparts etc.

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