A gag clause is a term in a contract, usually an employment contract, that bans one party from exposing certain information or speaking negatively about another party. It prohibits persons from discussing or releasing particular facts, thoughts, or critiques that might jeopardize the reputation or interests of another party involved.
Example
A gag clause in an employment contract may prohibit an employee from disclosing secret corporate information to outside parties or posting bad remarks about the employer on social media sites. This provision is intended to protect sensitive information, maintain confidentiality, and preserve the organization's image or reputation.
