Gag Clause is a part of the employment contract that restricts the employee from sharing the company’s proprietary information, the way it operates and any future innovation. The gag clause is often discussed along with whistleblowing as it is aimed to prevent the employees from talking about any wrongdoings in the organization to the outside world.
It is different from a Non-Disclosure Agreement as unlike the NDA which is another document, the gag clause forms a part of the overall employment contract. Usually it is very difficult to enforce. However if it can be showed that such disclosures can lead to hamper the company growth then it may get easily enforced.
An employee may quote that he is not able to talk about the conditions of his employment owing to the gag clause signed by him.