Warning Letter to Employee for Disclosing Confidential Info.

Breaching of confidentiality agreement by an employee can be a very serious matter. Whether or not the Company was really harmed in any way by this disclosure becomes an entirely different issue, but the action against that employee must be taken either strictly or by way of a warning.

Generally, most of the companies, during the joining of new employees - along with the execution of employment agreement also execute a non-disclosure agreement, famously known as NDA, between employer and employee. Some companies only take a written undertaking from the employee on confidentiality terms.

All employees, no matter how high rank they belong to in the company, are expected to follow the terms of confidentiality. That is to say, none of the confidential information of the company should be shared with any third party which may adversely affect the company's business or goodwill.

Confidential information includes a range of info on technical know-how, trade secrets, business plans, marketing strategy, database, prototypes, specifications, software codes, etc.

An employee should be very careful regarding disclosure of these information only to limited people as required to perform the assigned work in the company and as per the terms of non-disclosure agreement.

Violations of confidentiality agreement or undertaking may lead to strict penalization like salary deduction, suspension from work, termination of employment and even a court case against the employee.

The following format of warning letter to the employee could be used after suitable modification as per the circumstances.

FORMAT

Ref: ..................

Date: ................

To

(Name of the Employee)

(Designation)

(Department)

(Address)

Sub.: Violation of confidentiality agreement dated ............

Mr./Ms. ......... ...................,

A disturbing news has come to our attention which concerns you and your conduct. We have been informed that you have disclosed certain confidential information of the company to an outside party, which may work against the wellbeing of our company.

It is alleged that you have informed the following information to one Mr. (third party name):

1) XYZ Project information of ..... client; and

2) Business plans and strategy for the said project.

You are well aware that (third party name) works in the (company name), which is a competitor of our company belonging to the same industry we are in. We are surprised to note how you could have done such an irresponsible act.

Reference to the non-disclosure agreement dated ........... entered into between you and our company, you are bound under the law not to disclose confidential information of our company to third parties which may work against the interest of our company. As you must have read, this kind of project information is considered to be confidential information as clearly defined under the clause ... of the said non-disclosure agreement dated ...............

There will be a disciplinary meeting conducted on (date), (time) at (venue), in the presence of you, your superior - Mr. .............., HR head - Ms. ................ and CEO - Mr. ................ At the meeting, the case will be heard by all and you will be given the opportunity to explain yourself as to why any disciplinary actions shouldn't be taken against you for this violation of confidentiality terms with the company. Do make yourself available at the meeting. Failing which, we will be forced to initiate appropriate actions on this matter.

Sincerely,

  (signature)

(Name of the Officer)

(Designation)

(Department Name)