Asked July 12, 2016

Freelancer not being paid

  • 1 Answer

Hi, We have done some freelancers jobs without signing NDA. The payment is not received from the company. and he is telling now that we are not meet the quality so we cannot able to release money. If you continuously disturbing for the payment we will take legal action against us. Without signing NDA is this possible?

Answer 1

Default avatar
Saurabh Kumar

A Non Disclosure Agreement (NDA) is a contract that has been entered into between at least two parties that defines information of a confidential nature that the parties wish to share with each other given the nature of their transactions, but wish to restrict third party access to.

An NDA does two things:

First it describes the nature of the information that is or may be deemed ‘confidential’ given the nature of the relationship between the parties, AND,

Secondly, it precludes either party from disclosing such confidential information to any third party before, during or after their transactions with the other party or parties.

NDAs are most commonly entered into between two businesses although two individuals may also enter into them in order to effectively conduct their transactions. Typically, one party insists on an NDA while disclosing any information pertaining to its business practices, business procedures or HR policies.

An NDA has the following advantages:

1.It emphasises the importance of non-disclosure. The likelihood of trade secrets being divulged inadvertently by idle gossip or chance comments is hence minimised.

2.NDAs act as deterrents to any party who might consider deliberate disclosure. Such a person will understand that there will be consequences to their actions.

3.Should a violation occur, an NDA will be of advantage in a court of law during proceedings, and are the strongest (if not the only) safeguard for the affected party.


However, NDAs per se have nothing to do with performance of an individual. They are not meant to serve the purpose of judging an individual’s professional response to the tasks so allotted to him/her. Thus, in this case, NDA has nothing to do with the assessment of your performance and threatening legal action without citing any sufficient cause is unjustified and wrong. In this case, you have not leaked any information to any third party and thus presence of NDA could not be used to carry out legal action as well.


It is advised that if you haven't received your salary, check with the colleagues and then with the HR. Is it an error or recovery of an amount that you need to discuss? In case of a company-wide issue, pick your manager's brains to figure out if the firm is facing cash challenges. You may consider filing a case with a labour court, in case there seems to be no other way out. However, it is to be noted that labour courts are not known for expediently delivering justice and such a process may be long and time taking. You may also consider filing a complaint in a lower court

You may refer to this website to understand the process of filing a complaint in a labour court- .













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