The purpose of a confidentiality form is to ensure an employee is confidential about business information and knowledge. A confidentiality form is usually used in an employer and employee relationship, where the employer asks the employee to sign the form as a condition of employment, Wilhelm Law explains.
A confidentiality form is an agreement that the employee cannot disclose certain confidential information to which the employee is privy, Wilhelm Law notes. An employee may learn confidential information from a customer or supplier, and the confidentiality form ensures that information remains with the employee. A client may also ask other businesses to sign a confidentiality form if the client is sharing information about his company to the other business.