Gag Clause definition

A gag clause is a contractual stipend that prevents employees from disclosing certain sensitive information amount a business, the way it operates, its intellectual and physical assets, and any future innovations.

Gagging clauses are often discussed alongside whistleblowing – the clauses are often designed to prevent employees from speaking out about perceived wrongdoing in the workplace.

Gag clauses differ from non-disclosure agreements in that they form one part of an overall employment contract, whereas NDAs will typically be separate documents and will cover in more depth what is and isn’t acceptable disclosure by the employee.