Gag clause definition

A gag clause is a rule in a contract that keeps employees from talking about certain secrets of a company. This can include how the company works, its special assets, and new ideas. It’s used to keep the company’s important information safe from competitors or others.

How do gag clauses differ from non-disclosure agreements?

Gag clauses and non-disclosure agreements (NDAs) both aim to stop employees from sharing sensitive information, but they are used in different ways. Gag clauses are usually part of an employment contract and mainly focus on preventing employees from speaking about wrongdoing in the workplace. They are often linked to whistleblowing and help protect the company’s secrets and reputation.

On the other hand, NDAs are typically separate, more detailed documents. They clearly list what employees are not allowed to talk about and can cover a wider range of topics, not just wrongdoing. NDAs spell out what information is confidential and what can happen if someone shares it.

So, while both protect information, gag clauses focus on employment and whistleblowing, and NDAs offer wider, detailed protection as separate agreements.

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