NDA

Employee Confidentiality Agreement Australia: What to Include

7 October 2026 · 7 min read · By SignedSorted

A new staff member is about to get access to your client list, your pricing and your systems. You want something in writing that says it all stays inside the business, during the job and after they leave.

That document is an employee confidentiality agreement, also called an employee non-disclosure agreement or staff NDA. This guide covers what one should include in Australia, what it is not allowed to restrict, and what makes it hold up if you ever need to rely on it.

This article is general information, not legal advice. Employment law has rules that override what a contract says, so for senior roles or a dispute, get advice from an employment lawyer.

Do Employees Already Owe a Duty of Confidentiality?

Yes, to a point. Under Australian law an employee owes their employer a duty of good faith while they are employed, which includes not misusing confidential information. After they leave, the law still protects genuine trade secrets.

The gap is everything in between. Without a written agreement it is often unclear what counted as confidential, and the protection for ordinary business information after the job ends is weak. A signed agreement fixes that by spelling out what is covered and stating that the obligation continues after employment ends.

Separate Agreement or Clause in the Employment Contract?

Either works. A confidentiality clause inside the employment contract is the most common approach for new hires. A standalone agreement is useful when:

Existing employees

A contract needs something of value passing each way. For a new hire, the job is that value. When you ask an existing employee to sign new obligations, it is safer to tie the agreement to something new, such as a promotion, pay rise, bonus or access to a new role, and to say so in the document.

What to Include in an Employee Confidentiality Agreement

1. What counts as confidential

List the categories that matter in your business: client and supplier lists, pricing and margins, financial records, source code, product designs, processes, marketing plans, and personal information about customers or staff. A definition that tries to cover "all information" is harder to enforce than a specific one.

2. What is excluded

State that the agreement does not cover information that is already public, or the general skills and know-how the employee builds up by doing their job. Courts will not stop a person using their own skill and experience, and saying so makes the rest of the agreement more credible.

3. What the employee must do

Use the information only to do their job, not disclose it to anyone outside the business without permission, keep it secure, and not copy it to personal devices, personal email or personal cloud storage.

4. How long it lasts

The obligation should apply during employment and continue afterwards. For ordinary business information, a set period after the job ends is easier to defend than "forever". Genuine trade secrets can be protected for as long as they stay secret.

5. Return of property and information

On leaving, the employee must return or delete documents, files, devices and copies, and confirm they have done so.

6. The exceptions the law requires

Say plainly that nothing in the agreement stops the employee from doing the things the law protects, which are set out in the next section. An agreement that appears to forbid them invites trouble.

7. Governing law and signatures

Name the Australian state or territory whose law applies, and have both the employer and the employee sign and date it. An electronic signature is fine.

What an Employee Confidentiality Agreement Cannot Do

This is where employee agreements differ most from an ordinary business NDA.

Is an Employee NDA Enforceable in Australia?

Generally yes, if it is reasonable. The things that decide it are:

If an employee breaches it, the usual remedies are an injunction to stop further use or disclosure, and compensation for loss. Acting quickly matters, because an injunction is most useful before the information spreads.

Contractors and Casual Staff

Contractors and freelancers are not employees and do not owe the same implied duties, so a written confidentiality agreement matters more for them, not less. The same document structure works. If you are not sure which category someone falls into, see our guide to contractor or employee.

For the clause-by-clause detail and a sample document, see our NDA guide and sample template.

Create a Staff Confidentiality Agreement

Describe the role and what needs protecting, and get a confidentiality agreement drafted for your situation, ready to e-sign. From $3.99.

Create My NDA →

Sources: Fair Work Ombudsman — Pay secrecy, ASIC — Whistleblowing, Respect@Work, IP Australia — Non-Disclosure Agreements.

Frequently Asked Questions

Can an employer make an employee sign a confidentiality agreement?

An employer can make it a condition of a job offer, and most do through the employment contract. An existing employee cannot simply be forced to accept new contract terms, which is why new obligations are usually tied to a promotion, pay rise or new role.

Does a confidentiality agreement still apply after I leave the job?

If it says so, yes. Most are written to continue after employment ends. Trade secrets remain protected even without a written agreement.

Can I talk about my salary if I signed a confidentiality agreement?

Yes. Employees covered by the Fair Work Act have a right to disclose their own pay and employment conditions, and a contract term that says otherwise has no effect.

Is an employee confidentiality agreement the same as a non-compete?

No. Confidentiality is about information. A non-compete, or restraint of trade, is about where someone can work afterwards. They are separate clauses and are judged by different standards.

Do casual and part-time employees need to sign one?

If they have access to confidential information, it is sensible. The obligations are the same regardless of hours worked.