Government to Ban Employer’s from using NDAs with Employees alleging sexual misconduct or discrimination

The UK government has announced a ban on the use of non-disclosure agreements (NDAs) to silence victims of sexual misconduct and discrimination in the workplace.

The reform, introduced as an amendment to the Employment Rights Bill, is expected to become law later this year.

What is an NDA?

Traditionally, NDAs have been used to protect sensitive business information. They are a legally binding document that protects confidential information between two parties. However, there has been a large crossover into employment disputes and settlements, particularly in cases involving sexual harassment or discrimination, which has raised serious ethical and legal concerns.

The new legislation

The new legislation will see that any NDA or confidentiality clause that seeks to prevent a worker from disclosing harassment or discrimination will be void or unenforceable. This will expand to clauses in employment contracts, settlement agreements, and non-disparagement agreements.

Some “excepted agreements” may still be permitted however the Government has yet to clarify the scope of these exceptions.

What should employer’s do?

This change will require employers to review and amend employment contracts, policies and precedent settlement agreements to ensure compliance with the new legislation once it is in effect.

Furthermore, legal teams will now need to distinguish between legitimate confidentiality protections and clauses that could now be deemed unlawful.

If you are an employer or employee affected by the above issue and want advice or support in connection with the same, or any employment law or HR issues more generally, please do not hesitate to contact us on 01206 239 761.