Employment Legislation

How Does New Legislation Tackle the Misuse of Non-Disclosure Agreements (NDAs)?

Legislation

How Does New Legislation Tackle the Misuse of Non-Disclosure Agreements (NDAs)?

Due Date

In Consultation

Summary

According to the House of Commons Women and Equalities Committee, the Government should end the cover-up culture in respect of discrimination and harassment.

The Committee has published a report on the use of non-disclosure agreements in discrimination cases. The report recommends restrictions should be placed on the usage of NDAs to ensure they don’t prevent the victim from ever being able to talk about what has happened to them.

The Committee suggested that a statutory code of practice is implemented to set out restrictions on confidentiality clauses and provide a range of measures for settling employment disputes.

Key Points of the Code of Practice

This code of practice should:

  • Place a mandatory obligation on employers to put measures into place to protect employees from being discriminated and/or harassed
  • Ensure NDAs do not prevent legitimate discussion about unlawful discrimination
  • Stop NDAs from being used to cover up allegations of unlawful discrimination and harassment
  • Ensure that plain English is used when drafting confidentiality, non-derogatory and similar clauses to make it clear what information can and cannot be shared, and with whom
  • Ensure senior managers are involved in overseeing anti-discrimination policies in the workplace
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