Reports indicate employers misuse NDAs to silence victims of harassment and abuse
The United Kingdom government is proposing to ban the use of non-disclosure agreements (NDAs) in cases of workplace harassment under the Employment Rights Bill.
The government said the prohibition will protect workers and stop victims of workplace harassment, such as sexual harassment or discrimination, from suffering in silence.
"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," said Employment Rights Minister Justin Madders in a statement.
An NDA is a legal contract containing confidentiality and non-disparagement clauses that restrict what a signatory can say, or who they can tell, about something.
According to the UK government, an NDA is intended to protect intellectual property or other commercial or sensitive information.
However, there have been reports that employers are using NDAs to silence victims of harassment and abuse in the workplace.
Data from the Chartered Institute of Personnel and Development (CIPD) last year revealed that 22% of employers use NDAs when dealing with allegations of sexual harassment.
"It is time we stamped this practice out – and this government is taking action to make that happen," said Deputy Prime Minister Angela Rayner in a statement.
"The Employment Rights Bill will ban any NDA used for this purpose, so that no one is forced to suffer in silence."
If passed, confidentiality clauses in settlement agreements or other agreements that prevent workers from speaking about an allegation of harassment or discrimination will be null and void, according to the UK government.
Zelda Perkins, Founder of the campaign Can't Buy My Silence UK, called the government's proposal a "huge milestone."
"Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn't. Without their courage, none of this would be happening," Perkins said in a statement.
Ben Willmott, head of public policy for the CIPD, said they also welcome the amendment, but pointed out that this will not address cultures that enable sexual harassment or discrimination at work.
"While we welcome this development, we would also urge employers to tackle the root causes of such issues so all employees can feel safe and protected at work," Willmott said in a statement.
"People professionals have an important role to play in ensuring the ethical use of NDAs. This means influencing the organisation's leadership to have oversight of their use. Importantly, organisations should have the correct channels in place for staff to raise concerns they have about inappropriate workplace behaviour so these can be addressed at an early stage."