You (Contractor)
Performing the work
Staffing Agency
Your direct client
End Client
Whose work you do
Sometimes you may also sign NDA #3 directly with the end client.
Common Agency NDA Scenarios
Traditional Staffing Agency
You're placed at a client site through an agency like Robert Half, Randstad, or Kforce. The agency is your employer of record.
- You sign the agency's standard NDA and employment docs
- Agency has master service agreement with client
- May need to sign client's NDA separately
- Agency handles payroll and benefits
- Watch for non-compete provisions in agency docs
Freelance Platforms
You find work through Upwork, Toptal, Fiverr, or similar platforms. The platform facilitates the relationship.
- Platform terms include confidentiality provisions
- Client may have additional NDA requirements
- IP ownership often addressed in platform terms
- Payment protection through platform escrow
- Review platform's liability and dispute terms
Consulting Firm Subcontract
A consulting firm wins a project and brings you in as a specialist. You're their subcontractor, not the client's.
- Sign NDA with consulting firm (prime contractor)
- Firm's NDA with end client flows down to you
- May need direct NDA with end client for access
- IP typically assigned to prime, then to client
- Liability caps important in subcontract terms
Employer of Record (EOR)
An EOR like Deel, Remote, or Oyster handles employment compliance while you work for a foreign company.
- EOR is technical employer in your country
- Actual direction comes from the end company
- May sign NDAs with both EOR and end company
- IP assignment flows through EOR structure
- Local employment laws may override contract terms
Key Issues in Agency NDAs
1. Who Claims Your IP?
When working through an agency, IP ownership can get complicated:
- The agency may claim ownership of everything you create "in connection with" placements
- The end client's agreement with the agency typically assigns all IP to the client
- If you sign directly with the client, ensure it's compatible with agency terms
- Your pre-existing IP should be carved out in ALL agreements
2. Who Can You Work For?
Agency NDAs often include restrictions beyond confidentiality:
- Non-solicitation: Can't hire or be hired by the end client directly (bypassing agency)
- Non-compete: Can't work for competitors (may be overly broad)
- Conversion fees: High fees if client hires you directly
- Industry restrictions: May limit work in entire sectors
3. Whose Confidential Information?
You may have access to multiple parties' confidential information:
- Agency's business information (rates, client lists, processes)
- End client's proprietary information (what you work on)
- Other contractors' work (if part of a team)
- Each may have different protection requirements
4. Liability and Indemnification
Agency agreements often include significant liability provisions:
- You may indemnify the agency for your actions
- Agency indemnifies the client under their agreement
- Ensure liability is proportionate to your fees
- Watch for unlimited liability or lack of caps
Comparing Your NDA Obligations
Use this table to compare the key terms across your agency and end client NDAs:
| Issue | Your Agency NDA | End Client NDA | Potential Conflict? |
|---|---|---|---|
| IP Ownership | Who owns work product? | Who owns work product? | Both can't own 100% |
| Duration | How long do obligations last? | How long do obligations last? | Different timelines = confusion |
| Definition of Confidential | What's covered? | What's covered? | Inconsistent scope |
| Non-Compete | Industry/client restrictions? | Industry/client restrictions? | Overlapping restrictions |
| Governing Law | Which jurisdiction? | Which jurisdiction? | Different legal standards |
Before You Sign: Agency NDA Checklist
Agency Agreement Review
End Client NDA Review
Best Practices for Agency Work
Before Accepting the Engagement
- Request both the agency NDA and end client NDA before starting work
- Compare the two documents side-by-side for conflicts
- Ask the agency how their terms interact with the client's
- Clarify the chain of IP assignment (you → agency → client)
- Understand what happens if you're offered direct employment
During the Engagement
- Keep clear records of what confidential information you access
- Maintain separate files/folders for different clients if you have multiple
- Document your pre-existing work to prove what you brought to the engagement
- Follow both the agency's and client's security requirements
- Route questions about confidentiality through your agency contact
After the Engagement Ends
- Follow return/destruction requirements for both parties
- Understand what confidentiality obligations survive termination
- Track any non-solicitation or non-compete windows
- If the client offers direct employment, review your agency terms first
- Keep copies of executed agreements for your records
Related Resources
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