The UK government has announced plans to ban the use of non-disclosure agreements (NDAs) in settlement agreements that relate to workplace harassment and discrimination. The proposed changes, part of the 2025 Employment Rights Bill, aim to increase transparency, support victims, and hold employers and perpetrators accountable. The ban is expected to take effect no later than 2027.
The government has introduced amendments to the Employment Rights Bill that will significantly change the use of non-disclosure agreements (NDAs) in workplace settlement agreements. These amendments aim to ban NDAs or confidentiality clauses that prevent individuals from speaking out about workplace harassment or discrimination. This change represents a vital step toward promoting transparency, accountability, and support for victims in employment matters.
What are NDAs?
NDAs are agreements or clauses that restrict what someone can say or who they can tell about certain matters. Originally meant to protect commercial secrets, they have increasingly been used to silence victims of harassment or discrimination by legally barring them from discussing their experiences.
Why ban NDAs in harassment and discrimination cases?
Evidence indicates that NDAs can pressure victims into silence, protecting perpetrators and enabling harmful behaviour to continue unchecked. This fosters a culture where victims feel unsupported, unable to seek justice or warn others. Employment Rights Minister Justin Madders said: “These amendments will give millions of workers confidence that inappropriate behaviour in the workplace will be dealt with, not hidden, allowing them to get on with building a prosperous and successful career.”
Key impacts of banning NDAs in harassment and discrimination cases highlighted by the government include:
- Ending the culture of silence and power imbalance that prevents victims from seeking accountability.
- Exposing perpetrators who might otherwise continue harmful behaviours unchecked.
- Supporting victims’ wellbeing and recovery by allowing them to speak openly and access support.
- Encouraging organisational accountability by preventing employers from concealing systemic issues.
- Reducing fear of legal retaliation, making reporting safer for victims and witnesses alike.
Potential Challenges and Considerations
While this is widely seen as a positive reform, it also raises some complexities. Employers might be less willing to settle harassment or discrimination claims when they cannot secure confidentiality. This could lead to more cases proceeding to costly and lengthy employment tribunals, potentially prolonging distress for claimants – at a time when employment tribunals are already suffering a backlog of claims and it can take years to reach a final hearing.
Some victims may also prefer the privacy and certainty that NDAs currently provide, wanting to keep their experiences confidential for personal and professional reasons. Without this option, settlements might become less attractive for both parties.
When Will the NDA Ban Take Effect?
The government is still finalising the precise implementation date, but the ban is expected to come into force by 2027 at the latest. From that point onward, any NDA clauses in settlement agreements that seek to silence discussions of harassment or discrimination will be automatically void.
There remains some uncertainty about whether the ban will apply retrospectively to existing settlement agreements; however, initial indications suggest enforcement will likely be prospective only.
What Should Employers Do Now?
Employers should:
- Review and update employment contracts and settlement agreement templates
- Seek legal advice to ensure compliance with the new rules
- Clarify which types of confidentiality clauses remain lawful
- Train HR teams on employee rights and whistleblower protections
- Promote a culture of openness and accountability in the workplace
To discuss the issues raised in this blog or to make an appointment with our Employment Law team, please call 03304609635 or email mail@carbonlawpartners.com
Disclaimer: The content of this blog is for general awareness and insight. This is not legal or professional advice, and readers should not act upon the information provided, but seek professional advice based on their particular circumstances. The law may have changed since this article was published.