This clause lists what information you must keep secret during and after your employment. It typically covers business plans, client lists, financial data, and trade secrets. Why it matters: if you breach this clause, your employer can sue you for damages and get a court order stopping you from using the information. The legal principle is that employers have a legitimate business interest in protecting valuable information. For example, if you work for a software company and email the source code to a competitor, you've likely breached this clause. The definition matters because vague language ("all company information") is harder to enforce than specific categories.
Ask your employer to define exactly what counts as confidential—don't accept overly broad language that could include your own work or public information. Negotiate a time limit (e.g., confidentiality obligations end 2 years after you leave) because indefinite restrictions can prevent you from working in your field. Check whether the clause covers information you already knew before joining or information that becomes public—these shouldn't be confidential. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause lists what information you must keep secret during and after your employment.
Why should I care about this clause?
It typically covers business plans, client lists, financial data, and trade secrets.
What are my options?
Why it matters: if you breach this clause, your employer can sue you for damages and get a court order stopping you from using the information.
How does this affect small businesses?
The legal principle is that employers have a legitimate business interest in protecting valuable information.