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03 May 2023
Issue: 8023 / Categories: Legal News , Employment , Disciplinary&grievance procedures
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Crackdown on non-disclosure agreements proposed

Legal regulators are considering tougher rules on non-disclosure agreements (NDAs) following a series of controversies in recent years. 

The Legal Services Board (LSB) launched a call for evidence this week on the misuse of NDAs. While it acknowledges the majority of NDAs are used legitimately to protect commercial sensitivities, it wants to explore the scale, extent and nature of misuse, understand why lawyers breach their ethical obligations, and consider ways to improve regulatory controls.

The #MeToo movement raised public awareness of NDA misuse: for example, NDAs were used to cover up the sexual assaults of Hollywood producer Harvey Weinstein. As the LSB highlights, NDAs can be used to conceal discrimination, harassment and bullying in a range of sectors, where ‘vulnerable individuals who are the targets of discrimination, harassment or abuse may be asked or coerced through an imbalance of power to sign [NDAs]’.

The LSB identifies several scenarios where NDAs could be lawful but unethical: for example, where a vulnerable individual does not understand their full rights and responsibilities but signs to end a grievance process. NDAs may also ‘perpetuate systemic imbalances of power’, and may ‘indirectly encourage or at least facilitate further criminal or inappropriate acts by protecting an individual who goes on to commit them’.

Matthew Hill, LSB chief executive, said: ‘We want to make sure that regulation supports—and, where necessary, insists on—standards of conduct that ensure, as far as possible, that NDAs are never used to cover up wrongdoing, silence victims or deprive people unwittingly of their rights.

‘This is something everyone across the sector should be concerned about, and we want to work collaboratively to ensure NDAs—which have a legitimate and important role to play in a wide range of circumstances—are always used appropriately and ethically. We’re interested in hearing from anyone with a view on this topic—whether the real experience of people who have been subject to misuse of NDAs, practitioners in this or related fields, regulators, representative bodies and others—to help identify solutions that uphold public confidence.’

The call for evidence, which runs until 14 July, can be viewed on the LSB website here.

MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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