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3 min read

What is a Confidentiality Agreement (And How To Create One)

Are you considering hiring a global contractor but worried about protecting your business’s confidential information? Look no further! A confidentiality agreement is a straightforward and essential tool for ensuring that your sensitive information remains safe and secure. Below, you’ll learn how to create your own confidentiality agreement in six easy steps.

Key Takeaways

  • A confidentiality agreement is a straightforward and essential tool for ensuring that your sensitive information remains safe and secure when working with global contractors.
  • The agreement should define the scope of the information, and the parties involved, and include specific language, terms, and consequences for breach.
  • Using a clear and concise template and seeking the advice of a lawyer can help ensure that the agreement meets your specific needs.

How to create a confidentiality agreement when you hire

Step 1: Define the scope of the agreement

Start by defining the scope of the agreement. What information needs to be kept confidential? Who will have access to this information? Be as specific as possible to ensure that all parties understand the scope of the agreement.

Step 2: Identify the parties involved

Next, identify the parties involved in the agreement. This includes your business and the global contractor. Be sure to include full legal names and addresses to ensure that the agreement is legally binding.

Step 3: Define the terms of the agreement

Define the terms of the agreement, including the duration of the agreement and any specific obligations of the parties involved. This may include limitations on how the confidential information can be used or disclosed.

Step 4: Include specific language

Use specific language in the agreement to ensure that all parties understand their obligations. This may include definitions of key terms, such as “confidential information” and “proprietary information.”

Step 5: Include consequences for breach

Be sure to include consequences for breach of the agreement, such as damages or termination of the contract. This will help ensure that all parties take the agreement seriously and understand the importance of keeping the information confidential.

Step 6: Use clear and concise language

Finally, use clear and concise language throughout the agreement. Avoid using overly technical or legal jargon that may be confusing to the parties involved.

Confidentiality Agreement

Confidentiality agreement template

Here’s a short example of what a confidentiality agreement might look like. Remember that the specific terms of the agreement will depend on your business and what kind of contract you’re writing.

Confidentiality Agreement

This confidentiality agreement (“Agreement”) is made and entered into as of [insert date] by and between [insert your business name] (“Disclosing Party”) and [insert global contractor’s name and address] (“Receiving Party”).

Scope of Agreement

The Receiving Party agrees to hold confidential all information disclosed to it by the Disclosing Party. Such information includes, but is not limited to, all proprietary information, trade secrets, and other confidential information. The Receiving Party shall not use this information for any purpose other than to perform its obligations under the contract with the Disclosing Party.

Terms of Agreement

This Agreement shall remain in effect for the duration of the contract between the Disclosing Party and the Receiving Party. The Receiving Party agrees to use reasonable efforts to maintain the confidentiality of the Disclosing Party’s information. The Receiving Party shall not disclose any of the Disclosing Party’s confidential information to any third party without the express written consent of the Disclosing Party.

Consequences for Breach

In the event of any breach of this Agreement by the Receiving Party, the Disclosing Party shall be entitled to seek injunctive relief and any other remedies available at law or in equity.


Creating a confidentiality agreement for your global contractors is a straightforward and essential tool for ensuring that your sensitive information remains safe and secure. By following these six simple steps and using a clear and concise template, you can help ensure that your information remains confidential and protected. Remember, before creating any agreement you should contact a lawyer who can help to ensure that the agreement you create meets your specific needs.

Reece is RemotePad’s finance and accounting specialist. Reece is the go-to contributor when RemotePad advises on the financial implications of remote work and hiring employees, locally and internationally. Based in the southern New Zealand city of Dunedin, Reece has a Bachelor of Commerce degree, majoring in Accounting, from the University of Otago.