Government launches consultation on NDAs

The UK Government has initiated a consultation on new regulations aimed at preventing employers from misusing non-disclosure agreements (NDAs) to conceal instances of workplace harassment and discrimination. This move responds to growing public concern and advocacy, especially highlighted by research from the Young Women’s Trust, which revealed that one in four young women hesitate to report sexual harassment out of fear of job loss.

Employment Rights Minister, Kate Dearden, reinforced the commitment by stating that the government is "committed to ending a culture of silence and impunity and stand with all survivors of harassment and abuse in the workplace." She elaborated that the proposed changes are designed to ensure that no one suffers in silence and that employees will gain confidence that inappropriate behaviours will be addressed.

As part of the broader initiative to bolster worker protections, the government also plans to hold a consultation in the summer regarding whistleblowing legislation to enhance its effectiveness. This initiative is indicative of the government's aim to foster an economy emphasising fair competition and job security, ultimately benefiting over 18 million workers across the UK.

Jo Mackie, a partner at Michelmores, endorsed the move, noting that it stems from various incidents of employers suppressing allegations of misconduct. She remarked, "Forbidding non-disclosure agreements to hide harassment, sexual or criminal acts is to be welcomed, as it will better enable good employers to keep the working environment safe."

Leading employment lawyer David Greenhalgh, a partner with Excello Law, expressed the need for balance in these reforms, stating, "Women should be allowed to get justice on their own terms, and if that means they are happy to take a payment under the terms of a settlement agreement with an NDA, that is their choice." He also added that reforms must prevent the misuse of NDAs without stripping individuals of their ability to make informed decisions regarding their claims.

The consultation is part of an ongoing campaign, supported by advocates such as Zelda Perkins, co-founder of Can’t Buy My Silence, who stressed the importance of public engagement in shaping effective legislation. Perkins highlighted that this is a "decisive moment in the fight to end the silencing of victims."

The Government's consultation aims to gather public opinion on several aspects, including the legitimacy of NDAs and potential protections for a wider group of people like agency workers and the self-employed. There is also a focus on protecting witnesses from being pressured into confidentiality agreements that could prevent them from supporting victims.

This initiative signifies a critical step toward creating a work environment where individuals feel safe to speak out against misconduct and wrongdoing, fostering a culture of accountability and transparency within workplaces across the UK. James Townsend, Head of Employment and Partner at leading law firm Payne Hicks Beach commented that "If Parliament is serious about levelling the playing field, it should consider introducing a presumption of anonymity for both claimants and respondents (unless they choose to waive that right) when dealing with allegations of sexual harassment or racism in the workplace before an Employment Tribunal, rather than continuing the practice of publishing Judgments online.

The consultation will remain open for twelve weeks, closing on 8th July, with anticipated changes to be implemented in 2027