What is a trade secret? Can an employer sign a "confidentiality agreement" with an employee?

In judicial practice, in order to obtain unfair benefits, some companies do not hesitate to infringe on the Trade secrets of other companies. So, what are trade secrets? Can an employer sign a "confidentiality agreement" with an employee? The editor of Legal Savior Network has compiled the following content, hoping it will be helpful to you.

What is a trade secret? Can an employer sign a "confidentiality agreement" with an employee?

According to the provisions of my country's "Anti-Unfair Competition Law", "commercial "Secret" refers to technical information and business information that is not known to the public, can bring economic benefits to the right holder, is practical, and has been kept secret by the right holder. In our country, the law allows the parties to the labor relationship to stipulate through contracts the rights and obligations regarding the confidentiality of business secrets. Article 23, Paragraph 1 of the Labor Contract Law also stipulates that the employer and the employee may agree in the labor contract to keep confidential matters related to the employer’s business secrets and intellectual property rights. Therefore, the confidentiality agreement between the employee and the employer can be written into the labor contract in the form of a confidentiality clause, or a separate confidentiality agreement can be concluded. The potency of both forms is the same.

"People's Republic of China Article 9 of the Anti-Unfair Competition Law: Operators shall not commit the following acts of infringing on trade secrets:

(1) To steal, Bribery, fraud, coercion, electronic intrusion or other improper means to obtain the business secrets of the right holder;

(2) Disclosure, use or Allowing others to use the rights holder’s business secrets obtained by means of the previous paragraph;

(3) Violating confidentiality obligations or violating the rights holder’s business confidentiality obligations To request confidentiality, disclose, use or allow others to use the trade secrets in their possession;

(4) Instigate, induce, or help others to violate confidentiality obligations or violate the obligee's requirements for keeping business secrets, and obtain, disclose, use, or allow others to use the obligee's business secrets.

Any natural person, legal person or unincorporated organization other than an operator who commits the illegal acts listed in the preceding paragraph shall be deemed to have infringed on business secrets.

The third party knows or should know that the employees, former employees or other units or individuals of the trade secret right holder have committed the illegal acts listed in paragraph 1 of this article, but still obtain , discloses, uses or allows others to use the trade secret, it shall be deemed as infringement of trade secrets.

Trade secrets as referred to in this Law, It refers to technical information, business information and other commercial information that is not known to the public, has commercial value and the right holder has taken corresponding confidentiality measures.

Article 23 of the "Labor Contract Law of the People's Republic of China": The employer and the employee may agree in the labor contract to keep the employer's business secrets and confidentiality matters related to intellectual property rights.

For workers who have confidentiality obligations, the employer can agree on non-competition clauses with the workers in the labor contract or confidentiality agreement, and agree on the termination or termination of employment. After the contract is signed, the employee will be given financial compensation on a monthly basis within the non-compete period. If the employee violates the non-compete agreement, he shall pay liquidated damages to the employer as agreed.

The above knowledge is the editor's understanding of "What is a trade secret?" Answer to the question "Can an employer sign a "confidentiality agreement" with an employee?" If you need more legal help, you are welcome to go to the Legal Savior Network for legal consultation.