Non-compete agreements vs. NDA: What are the differences?

Learn about the difference between NDAs and non-compete agreements and when to use each type of document.

NDAs and non-compete agreements are different types of contracts between businesses or individuals that are often confused with each other. However, they provide very different protections in different circumstances.

This article breaks down the difference between the two and shows you when and how to use each one.

What is an NDA?

NDA stands for “non-disclosure agreement.” It is a contract between two parties that binds one (or sometimes both) of them to secrecy on certain shared confidential information. These documents are often given to employees handling sensitive information during their employment or even between individuals discussing confidential information.

What is a non-compete agreement?

A non-compete agreement is an agreement between an employee and their employer that specifies a period of time after their employment ends where they cannot work for a competing company. This type of agreement is common among businesses in steep competition for talent or for high-level employees who have access to sensitive company information.

When should you use each?

A non-compete agreement is only used between an employee and a business to specify who may hire them should they leave the company. An NDA is much broader and is used to protect any personal or business-related information that one or both parties want to remain confidential.

No matter which one you’re using, e-signatures and digital documents are a great way to add extra security to your NDA or non-compete agreement PDF, thanks to their built-in security features. Find out more about everything that’s possible with Adobe Acrobat Sign today.