Government Bans Controversial NDAs: Everything you Need to Know

Introduction 

The UK government is making some major amendments to its Employment Rights Bill. It’s planning to ban the use of a controversial non-disclosure agreement used to silence victims of harassment, abuse, and discrimination in the workplace. The reason for this is to reshape how employers handle misconduct complaints, settle disputes and handle complaints of misconduct within the workplace. It’s a new measure that is set to protect employees, placing worker protection and transparency at the core of the Employment Rights Bill.  

NDAs and the Controversy around Them 

Non-disclosure agreements are legal contracts that restrict one or both parties from being able to disclose specified information. In the workplace, they’ve been used to safeguard secrets or sensitive information that, if leaked, could harm the company. However, today companies are being used in settlement agreements to prohibit employees from sharing their experiences. This includes bullying, sexual harassment, racism and other forms of misconduct. 

This practice has been widely criticised and condemned. It advocates injustice by allowing powerful individuals and organisations to cover up wrongdoings, whilst the victims are forced to be silent. High-profile cases such as the disgraced Hollywood producer Harvey Weinstein have highlighted the misuse of NDAs and exemplified the need for reform. 

The New Reforms

The most vital element set to be reformed is regarding disclosing experiences. That is an amendment added to the Employment Rights Bill that voids a clause that prevents a person from being able to speak about their experiences of any form of harassment, abuse or discrimination. These measures will extend not only to victims but also to witnesses of misconduct. The government reason behind doing this is to ensure workplaces are held accountable for their actions. 

Furthermore, these reforms will create a balance between businesses and employees. That is, businesses will be able to protect and maintain their legitimacy and avoid controversy. Just not at the expense of prohibiting the safeguarding of employees rights. As a result, NDAs covering trade secrets or sensitive intellectual property will still remain valid and enforceable. But the use of confidentiality clauses to hide unethical or unlawful behaviour will now be deemed void. 

Reactions to the Ban 

The news of the amendment has definitely stirred up conservation across the country. Many are in support of the ban, believing it to be a great way to support victims by ensuring that they aren’t silenced by companies. That way they feel more empowered to talk about their experiences and that workplaces foster a safer, fairer culture. Additionally, it will hold them accountable, ensuring that behaviours of abuse, harassment and discrimination don’t go unchecked.

However, others have voiced concerns, believing such a measure will have unintended consequences. Legal experts have argued that these amendments will not speak for all victims. That is the ones who prefer to settle disputes privately. Although that is not the intention, such victims may hesitate to speak up if confidentiality isn’t secured. Furthermore, such laws may affect the victim’s negotiating power in settlements, as companies know confidentiality isn’t secure.  

But in spite of this, many view the amendment as very promising. As a way forward, correcting an unfair system that typically favours companies, thus ending toxic traits within workplace culture. 

What can we expect within the upcoming weeks? 

Parliament announced these new amendments this week (early July 2025), after receiving strong support in the House of Commons. Now, it is expected to move forward into the House of Lords within the next upcoming weeks. If the amendment gets that final approval, then it’ll become law later this year. This is set to be a huge landmark move in the UK, making them one of the first countries to introduce such a measure. 

Furthermore, another thing that will take place if this measure gets approved is the revision of settlement and confidence agreement practice across the UK workforce. Company legal teams and HR departments will need to set new guidelines and instructions in alignment with these changes. 

Conclusion 

But conclusively, this represents a defining moment. It’s a great way to create a safer, more equal workplace. It ensures that all forms of misconduct are not hidden under legal clauses. Furthermore, it defends the victims, allowing them to speak on their experiences without fear of repercussions. The bill is still progressing through Parliament. However, we will be closely monitoring to see how these new legal protections are applied. 

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