Ban on NDAs to silence abuse
When the Employment Rights Bill was first introduced in October 2024, it did not mention changes to non-disclosure agreements (NDAs). However, when the Bill progressed through Parliament in July 2025, a significant amendment was added in relation to how employers can use NDAs in cases of sexual harassment and discrimination.
In this blog, our employment law solicitors look at the proposed NDA restrictions and how these will affect employers and their workforce.
What is a non-disclosure agreement (NDA)?
A non-disclosure agreement, also known as a confidentiality agreement, is a legally binding document that essentially stops a worker from disclosing (sharing) information to another person or party.
NDAs are written agreements that are either standalone documents or within a confidentiality clause as part of:
- An employment contract
- A Conciliation Agreement (COT3)
- A settlement agreement
When is an NDA used?
Most people associate NDAs with a way of ‘silencing’ someone, usually after a dispute at work, so you cannot discuss specific settlement terms or circumstances leading up to a settlement agreement. However, NDAs are not always used in this way. Non-Disclosure Agreements are also used to protect the employer’s confidentiality, for example, if the employee leaves to join a competitor.
NDAs cannot be used, however, to stop a worker from:
- Whistleblowing (speaking up about wrongdoing at work that affects others)
- Discussing pay with a colleague if it relates to equal pay
- Reporting a crime to the Police
New laws on NDAs
- From 1st August 2025, NDAs can no longer be used to prevent workers in higher education from reporting bullying or harassment, or sexual misconduct or abuse.
- From 1st October, this law applies to workers (in all industries) in England and Wales who are victims of crime.
This new law sits on a backdrop of widely publicised claims of former celebrities using confidentiality clauses to silence victims of abuse. The most notable is Zelda Perkins, a former assistant to Hollywood director Harvey Weinstein, who broke her confidentiality agreement to speak out about the abuse she suffered at his hands. Then, more recently, it has been reported that Harrods’ boss, Mohamed Al Fayed, used NDAs to silence women who accused him of sexual abuse.
NDA changes: what do employers need to consider?
With the new law, employers will not be able to rely on NDAs to keep complaints or claims of discrimination or harassment confidential. This means that, if an employee makes a complaint to their employer about sexual harassment, for example, the employer will have no way of ‘hiding’ that allegation or conversation. As a result, the employee is free to share that information with anyone. Guidance about whether the disclosure is exempt from the NDA will need to be carefully considered.
While using NDAs or confidentiality clauses to bury claims of this nature is not good practice and should never be considered a solution, it does pose new challenges for employers. Business owners may now feel more reluctant to settle disputes privately, as there is no guarantee that the matter will stay confidential. It may also cause confusion about when an NDA can and cannot be used.
As an employer, it is important to be aware of the changes so you understand what can and cannot be included in NDAs. You should also update any wording you tend to use in agreements, such as settlement agreements and COT3s, to ensure compliance with the new law and guidance. Permitted disclosures must be specifically carved out.
Need advice on DNAs? Contact our employment lawyers
Staying on top of employment law changes can be challenging, especially when there are so many to navigate post-Employment Rights Bill.
Our employment law solicitors can help you update your employment policies, procedures and contracts, as well as advise you on settlement agreements and NDAs.
Call us on 0117 325 2929 or fill out our enquiry form, and we will be in touch.
