What is Gag clause?

Whether you're a beginner or an expert, you will find this Glossary useful.

Gag clause refers to a part of the employment contract that restricts employees from disclosing the company’s trade secrets, its assets, the way it operates, future innovation or proprietary information.

Gag clause definition

Gag clause refers to a part of the employment contract that restricts employees from disclosing the company’s trade secrets, its assets, the way it operates, future innovation or proprietary information.

Unlike the NDA, which is a seperate contract that covers in more depth what is and isn’t acceptable disclosure by the employee, gag clause is just a part of an overall employment contract. The main goal of the gag clause is to stop the employees from sharing company's wrongdoings with outsiders.



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