Warning Letter to Employee for Disclosing Confidential Info

Breaching any of the conditions of a confidentiality agreement by an employee is a serious matter. Whether or not the company was really harmed in any way by this mistake does not matter. Disciplinary action against the employee has to be taken.

Most companies, during the joining of new employees, along with the execution of employment contract also execute a non-disclosure agreement (NDA) with the employee for protection of confidential information.

All employees, no matter how high rank/cadre they belong to, are expected to follow the terms of confidentiality. 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.

The following format of warning letter to the employee is for your reference.

TEMPLATE

Ref: _________

Date: _________

To

(Name of the Employee)

(Designation)

(Department's Name)

(Communication 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./Ms. (Name of the Person):

1) XYZ Project information of ______ client; and

2) Business plans and strategy for the said project.

You are well aware that Mr./Ms. (Name of the Person) works in the (Name of the Company), 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 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 an opportunity to explain yourself as to why any disciplinary actions should not 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's Name)