Table of Contents
In Short
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Tailor employment agreements to comply with industry regulations and ensure workforce compliance.
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Protect intellectual property and confidentiality with strong clauses for employees and contractors.
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Use post-termination clauses to prevent competition and the disclosure of sensitive information.
Tips for Businesses
When drafting employment agreements in the pharma and medtech sectors, focus on compliance, data protection and intellectual property. Ensure that training, confidentiality, and non-compete clauses are clear and comprehensive to protect your business. Regularly review and update agreements to align with changing regulations and industry standards.
Against the backdrop of extensive regulation and a strong culture of innovation, research and development, employment agreements can serve as a tool to ensure compliance within your workforce. This article addresses how your employment agreements can better serve your needs within the pharma and medtech industries.
Ensuring Compliance with Industry Regulations
Subject to substantial regulation surrounding clinical trials, quality control and manufacturing, it is crucial that your employment agreements provide you with greater flexibility to ensure your workforce is compliant and fit for purpose. This can be achieved by incorporating the following clauses:
- compliance training;
- reporting obligations;
- continuous technical and professional learning; and
- required professional and educational certificates necessary to perform the job.
It is essential to understand the specific needs and regulations of your industry in order to determine the capacity requirements of your workforce. You should incorporate these regulations into your employment contracts.
Ensuring Compliance with Data Privacy
Given the extensive amount of personal data employers within the pharmaceutical industry and medical technology industry control and process, your employment contracts should therefore include strict requirements around:
- compliance with data protection legislation; and
- compliance with policies and procedures for handling data and associated security measures.
This factsheet outlines key developments in 2025 affecting workforce management. In particular, the proposed Employment Rights Bill (2024) will drive significant changes, anticipated to start late 2025.
Intellectual Property
The products you manufacture, as well as your inventions and formulas, are all valuable assets that must be protected. Incorporating robust intellectual property clauses that not only cover employees but also contractors, consultants, and other workers will ensure your intellectual property is carefully protected and broadly enforceable.
A carefully drafted intellectual property clause serves to clearly identify who owns newly created intellectual property, as well as that created before the employment relationship began. As such, having a carefully drafted intellectual property clause within your employment agreements is essential to reduce the risk of potential costly litigation.
Confidentiality and Disclosure
Confidentiality and non-disclosure clauses should be carefully incorporated into your employment agreements to prevent company information from leaking. This clause can protect data relating to:
- clinical trials;
- patients;
- research and development;
- project proposals; and
- other proprietary information.
In particular, restrictions should be extended beyond the employment relationship in order to protect post-termination disclosure of confidential information, which could ultimately lead to significant disruption or loss of a first-mover and competitive advantage in the marketplace.
Post-Termination Clauses
At the core of your business’ success will be your talented workforce and, ultimately, your customers and clients. Ensuring these assets are protected can be achieved through carefully drafted non-solicitation clauses.
Additionally, you may wish to consider restricting members of your workforce from entering into direct competition with your business through non-compete clauses.
Key Takeaways
Drafting effective employment agreements involves bespoke tailoring to suit your business needs. A carefully drafted employment agreement will ensure your business is:
- compliant with industry regulation;
- compliant with data privacy requirements;
- protected against disclosure of confidential information;
- protected against poaching and direct competition from current and former members of your workforce; and
- competitive within the industry.
If your pharma or medtech business needs help with hiring employees, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Include clauses specifying mandatory training related to compliance, technical skills and industry-specific certifications. Outline expectations for continuous professional development and whether the company will provide funding or support for this training. This ensures that employees are always up to date with evolving industry standards.
Incorporate post-termination confidentiality clauses that extend beyond the employment period. These clauses should prohibit former employees from disclosing sensitive information like clinical trial data, research findings, and project details, safeguarding the company’s competitive edge and intellectual property after they leave.
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