HR Glossary

Gag clause

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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.

what-is-gag-clause

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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