A significant change is coming to UK employment law. The government has announced a ban on using non-disclosure agreements (NDAs) specifically to silence individuals who have experienced or witnessed workplace sexual misconduct or discrimination. This move aims to prevent employers from using confidentiality clauses to conceal wrongdoing and protect perpetrators. The proposed ban is set to be introduced as an amendment to the Employment Rights Bill, which is expected to become law later this year.
Deputy Prime Minister Angela Rayner stated it is “time we stamped this practice out.” This action signifies a crucial step towards ensuring that victims and witnesses of inappropriate behaviour can speak out without fear of legal repercussions or “gagging orders.” The amendment will render any future confidentiality agreements null and void if they attempt to prevent workers from disclosing allegations of harassment or discrimination.
The Problem with Misused NDAs
Traditionally, non-disclosure agreements serve a legitimate purpose. They are legally binding contracts designed to protect sensitive commercial information, trade secrets, or intellectual property between parties. However, their use has unfortunately broadened significantly over the years. NDAs have increasingly been deployed as a tool to settle disputes, particularly those involving allegations of sexual harassment, discrimination based on race or pregnancy, and bullying. This shift has transformed them from protecting business assets into potentially shielding harmful behaviour and preventing accountability.
The misuse of NDAs gained widespread attention through high-profile cases, especially in the wake of the #MeToo movement. Zelda Perkins, a former assistant to now-convicted sex offender Harvey Weinstein, famously broke her NDA in 2017 to speak about his alleged abuse. More recently, the late Mohamed Al Fayed faced accusations of using confidentiality clauses to silence women who made allegations against him. In the UK, businessman Philip Green was revealed via parliamentary privilege in 2018 to have used NDAs related to harassment and bullying allegations, although he denied the claims.
A Campaign for Change
The push for legislative change has been years in the making. Zelda Perkins began campaigning over seven years ago after her experience with Weinstein. She now leads the campaign group Can’t Buy My Silence UK, which advocates globally against the misuse of NDAs. Perkins described the newly announced amendment as a “huge milestone.” She believes it demonstrates that the government has finally “listened and understood the abuse of power taking place” enabled by these agreements.
Perkins highlighted the critical issue: many NDAs designed to silence victims regarding misconduct are likely unenforceable in court for that specific purpose. However, they remain effective because victims often lack the legal knowledge to challenge them. “Because of the nature of an NDA, no-one gets to see it,” Perkins explained. “So they can say anything to make the victim afraid to speak.” This creates a power imbalance where “the law protected the powerful person in the room, not the victims of a sexual crime,” she argued. The campaign has been supported by politicians like Louise Haigh and Layla Moran, who stressed the need to end the long period of victims suffering in silence.
Government Action and Justification
Employment rights minister Justin Madders condemned the practice. He called the “misuse of NDAs to silence victims” an “appalling practice.” The government’s decision follows considerable pressure and evidence. A report by the Chartered Institute of Personnel and Development (CIPD) found that 22% of surveyed employers reported using NDAs when dealing with sexual harassment allegations. Crucially, the CIPD survey also indicated strong employer support for a ban, with nearly half (48%) backing the removal of NDAs for these specific purposes.
Mr Madders stated the amendments would empower millions of workers. They will gain “confidence that inappropriate behaviour in the workplace will be dealt with, not hidden,” he said. This will allow them to focus on “building a prosperous and successful career.” The government acknowledged hearing the calls from victims and campaigners to end the misuse of NDAs. This move represents a notable shift in position; reports indicate the government had previously expressed reservations just months prior, suggesting potential impacts on settlement agreements. However, they are now vowing to proceed with the ban.
Broader Impact and Scope
The proposed ban extends protection beyond the immediate victims. It would also allow witnesses, including colleagues or managers, to report poor conduct and support victims publicly without facing threats of legal action for breaching confidentiality clauses. This aims to create a workplace culture where misconduct is challenged openly rather than concealed. The legislation is designed to be one of the toughest protection regimes globally. It particularly targets issues faced by workers in low-paid or insecure jobs across various industries, such as retail, hospitality, and creative sectors, where NDAs have reportedly become increasingly prevalent.
Data from a Unite union survey illustrates the scale of the problem, particularly for women. Of over 6,600 female members surveyed, 25% reported being sexually assaulted at work or by a colleague. 43% reported inappropriate touching, and over 3,000 received sexually offensive jokes or unwanted remarks. While some perpetrators were members of the public, a significant percentage involved managers or colleagues. This highlights the urgent need for measures that prevent the silencing of such experiences.
Legislative Process and Next Steps
The planned change would bring the UK in line with other jurisdictions. Countries like Ireland, the US, and some provinces in Canada have already restricted the use of NDAs to prevent the disclosure of sexual harassment and discrimination.
The proposed amendments to the Employment Rights Bill are scheduled for debate. Peers in the House of Lords will discuss them when the bill returns on 14 July. If the amendments pass in the Lords, they will then require approval by Members of Parliament (MPs) in the House of Commons to become law. While campaigners welcome the announcement, Zelda Perkins stressed that the work is “not done yet.” She continues to campaign for “watertight” regulations to ensure no one can be forced into silence again, advocating for the UK to potentially become a world leader in this area if the promises are fully realized. Challenges may include ensuring the regulations are robust enough and considering how the ban might affect settlement processes, though advocates argue the priority is accountability over expedient settlements.
Frequently Asked Questions
What specific types of misconduct will this ban on NDAs cover?
The proposed ban will void confidentiality clauses in non-disclosure agreements that attempt to prevent workers from speaking out about allegations of workplace sexual misconduct, harassment (including sexual harassment), or discrimination. It is specifically targeted at preventing the silencing of victims and witnesses related to these types of inappropriate behaviour within the workplace.
When is this ban on NDAs expected to become law in the UK?
The government plans to introduce this ban as an amendment to the Employment Rights Bill. The bill is scheduled for debate in the House of Lords on July 14th. If the amendments are approved by peers in the Lords, they will then need to be passed by Members of Parliament (MPs) in the House of Commons. The government anticipates that the bill, including this amendment, could become law later this year.
How will the new law distinguish between legitimate NDAs and those used to hide misconduct?
The proposed legislation is specifically designed to void confidentiality clauses only when they are used to prevent disclosure of allegations of workplace sexual misconduct, harassment, or discrimination. It explicitly states that the ban will not affect the legitimate use of NDAs for protecting commercially sensitive information, trade secrets, or intellectual property. The law targets the misuse of NDAs as “gagging orders” while preserving their role in protecting genuine business secrets.
This new measure represents a significant step towards greater transparency and accountability in UK workplaces. It aims to shift the balance of power, empowering those who have experienced or witnessed harm to speak their truth without the threat of legal silencing.
Word Count Check: 1039
