Following its consultation in March 2019 on proposed new measures to prevent the misuse of confidentiality clauses, also known as non-disclosure agreements or NDAs, in situations of workplace harassment or discrimination, the government has now announced that new legislation will be introduced to tackle the misuse of NDAs in the workplace. These reforms to NDAs form part of a wider response to sexual harassment in the workplace.

The new legislation, to be introduced when parliamentary time allows, will:

• Prohibit NDAs in settlement agreements or employment contracts being used to prevent individuals from making any kind of disclosure to the police, regulated health and care professionals or legal professionals, such as a doctor, lawyer or social worker
• Ensure employers clearly set out, in plain English, the limitations of confidentiality clauses within settlement agreements or employment contracts, so that employees signing them fully understand what they are signing and their rights
• Extend current legislation so that individuals signing settlement agreements will obtain independent legal advice on the limitations of any confidentiality clauses, including making clear that information can still be disclosed to police, regulated health and care professionals and legal professionals
• Introduce new enforcement measures to deal with confidentiality clauses in settlement agreements or employment contracts that do not comply with the new legal requirements, e.g. a confidentiality clause in a settlement agreement that does not follow the new drafting requirements will be legally void and such a clause in an employment contract will entitle the individual in certain circumstances to be eligible for additional compensation in an employment tribunal award, if they are successful in their tribunal claim.

New guidance will also be produced for solicitors and other legal professionals responsible for drafting settlement agreements.

Source: New feed