A non-disclosure agreement, commonly known as an NDA, is a legal document that is used to safeguard a company`s confidential information. It is usually signed between two parties, such as an employer and an employee, to prevent the latter from disclosing any sensitive information about the former to third parties. In Australia, a simple non-disclosure agreement can be drafted by following a few basic steps.

The first step to drafting a non-disclosure agreement is to clearly define what information is considered confidential. This may include trade secrets, customer lists, business plans, financial information, and other proprietary information. The agreement should also specify the duration of the confidentiality obligation, which typically ranges from 2 to 5 years.

Next, the parties involved should agree on the scope of the agreement, including who is bound by the confidentiality obligations. For example, if the NDA is between an employer and an employee, the employee`s subcontractors and consultants should also be bound by the agreement.

The NDA should also outline the permitted use of the confidential information. This should include any restrictions on copying, reproducing, or distributing the information, as well as any safeguards that may be required to protect the information, such as encryption or password protection.

It is important to note that a non-disclosure agreement is a two-way street. The party receiving the confidential information should also be required to take reasonable steps to protect the information and to only use it for the purposes outlined in the agreement.

Finally, the agreement should specify the consequences of a breach of confidentiality. This may include injunctions, damages, and other legal remedies.

In summary, a simple non-disclosure agreement in Australia should clearly define what information is considered confidential, specify the duration of the confidentiality obligation, outline the permitted use of the confidential information, require both parties to take reasonable steps to protect the information, and specify the consequences of a breach of confidentiality. By following these steps, companies can protect their valuable confidential information and avoid the risk of costly legal disputes.