The Employment Rights Bill (the “Bill”) is shaping up to be one of the most transformative pieces of UK employment legislation in decades, and potentially one of its most headline-grabbing provisions is the proposed ban on non-disclosure agreements (“NDAs”).

If amendments to the Bill are passed, confidentiality clauses designed to stop workers from speaking out against workplace harassment or discrimination will be null and void.

 

What’s going to change with NDAs?

Under new amendments to the Bill:

  • NDAs that prevent employees from speaking out about harassment or discrimination will be rendered legally void.
  • This includes clauses in settlement agreements or other contracts that attempt to gag victims or witnesses.
  • The aim is to end the misuse of NDAs and ensure that inappropriate behaviour is exposed, not hidden.

This reform is part of a broader effort to improve workplace transparency and accountability in the UK.

 

Why the law is changing

NDAs in the UK were originally designed to protect commercially sensitive information like trade secrets or client data. But over time, they’ve been misused to:

  • Silence victims of sexual harassment, bullying, racism, and other misconduct.
  • Protect an employer’s reputation rather than the employee’s wellbeing.
  • Prevent witnesses from supporting victims publicly.

The NDA changes are a response to growing public pressure and high-profile cases where NDAs were used to cover up systemic abuse.

 

How Will the NDA Changes Affect Employers?

As an employer or HR professional it’s crucial to prepare now. Here’s what the changes mean in practice:

  • Employers will need to review all template contracts, settlement agreements, and HR policies to ensure they don’t fall foul.
  • Confidentiality clauses will still be allowed for legitimate purposes (e.g. protecting intellectual property or trade secrets), but not to suppress misconduct allegations.
  • Victims and witnesses will be free to speak to police, regulators, therapists, and even the media without fear of legal repercussions.

This will reshape how workplace disputes are handled, especially around internal investigations and reputation management.

 

Risks and Real-World Impact of the NDA Ban

Some have raised concerns that:

  • A blanket ban could remove the right to confidentiality from victims who would prefer confidentiality.
  • It might lead to fewer early settlements, resulting in more litigation.
  • Employers may become reluctant to settle if they can’t protect reputational interests.

It therefore seems that while the move is widely welcomed, there’s ongoing debate about how to strike the right balance between transparency and autonomy.

 

Next steps for Employers

Now is the time for proactive review. Speak with our expert employment solicitors to update your employment documentation and ensure your contracts and settlement agreements don’t fall foul of the new proposed NDA restrictions.

For further guidance on how the proposed Employment Rights Bill, including NDA changes, will affect your organisation, contact our employment law team.