Are NDAs legally binding in the Czech Republic (Czechia)? A guide for employers [2025]

Many employers hiring in Prague and the Czech Republic rely on non-disclosure agreements (or NDAs) to protect sensitive company information.

In some countries, NDAs are facing increased scrutiny and, if you’re considering hiring in the Czech Republic, you may have several questions: Are NDAs enforceable in the Czech Republic and the European Union? How can you use NDAs to protect your company’s confidential information, trade secrets, and global employees? Read on to learn more (note: our guide is for informational purposes, and isn’t intended to provide legal advice).

What is an NDA?

A non-disclosure agreement (NDA) is a type of legal contract that prevents the parties from disclosing confidential or proprietary information to competitors.

In the Czech Republic, the employer and employee can sign an NDA that restricts the employee from sharing specific types of information, like trade secrets, that they acquired while working for the company. In general, Czech employees don’t have an obligation of confidentiality unless they work in the public sector. Because the NDA only covers what is specifically in the agreement, all information to be covered must be included.

Are NDAs enforceable in the Czech Republic?

Yes. Under the Czech Republic’s Enforcement of Industrial Property Rights and The Protection of Trade Secrets Act, NDAs are enforceable. However, there are a few important caveats:

• The NDA must be in writing.

• The terms must be very specific as to what is covered.

• The terms must be specific as to whom the agreement applies.

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Three things you need to know about NDAs in the Czech Republic

1. There is one type of NDA in the Czech Republic

While there is a single format for an NDA, there are other restrictive covenants that are used in business:

• Non-compete clauses: These are quite common and restrict a former employee from engaging in similar work for a competitor. These are valid for a fixed term (one year or less) and require compensation to be paid to the former employee for loss of employment opportunities.

• Non-solicitation clause: This restricts a former employee from poaching staff, customers, and providers.

2. There are essential components to make NDAs enforceable

These are the things that an NDA should include to be comprehensive and enforceable:

• Clear indication of the parties involved. The NDA must include the names and roles, including who will be sharing and receiving sensitive information (i.e. the disclosing party and the receiving party), and who they will be sharing such information with.

• Definition of confidential information. This should include the general topic of information covered by the NDA, as well as the scope of information that's covered. In the Czech Republic, the information must be stated in detail as anything missed can be considered not to be covered by the agreement. It should also define how confidential information is shared; for example, is written information considered confidential but oral information is not?

• Exclusions from confidentiality. If there are any cases when parties in the NDA are allowed to disclose confidential information (for example, after it's been made public), those should be included in the contract.

• Terms of the agreement. How long does the NDA last? Employment NDAs typically last for the duration of the employment relationship, but they can last longer with limitations.

• What will happen if the NDA is breached. It's a good idea to include provisions that outline any injunctions, damages, or other contractual penalties for breaching the NDA.

3. There are three legal requirements for NDAs in the Czech Republic

For NDAs to be enforceable in the Czech Republic, they must be:

• Reasonable. The NDA cannot place an undue burden on someone not to share information.

• Specific. The NDA needs to clearly define the kind of information that's confidential and the time frame during which it cannot be disclosed.

• Not outside the public interest. Certain information can't be covered by an NDA. For example, a company can't require employees to sign an NDA to prevent them from disclosing criminal activity by the company.

When would an employee or contractor sign an NDA?

As early as possible. It's common for employees and contractors in the Czech Republic to sign NDAs during their onboarding process or when they start a new work contract. An NDA may also be included as part of a new hire's offer letter or employment contract or as a separate agreement.

Frequently asked questions about NDAs in the Czech Republic

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