header-logo header-logo

30 October 2019
Issue: 7862 / Categories: Legal News , Employment , Discrimination
printer mail-detail

Limits set on NDAs

Clarity & transparency sought in face of cover-up culture

Employers are to be blocked from using non-disclosure agreements (NDAs) to cover up sexual harassment and discrimination in the workplace, the government has confirmed.

The government’s response, published this week, to the Women and Equalities Select Committee’s June report on NDAs states that it ‘agrees with the committee that it is unacceptable’ that such cases are hidden by confidentiality clauses and NDAs. While there is a ‘legitimate place’ for NDAs in employment contracts and settlement agreements, the government says, ‘using these agreements to silence and intimidate victims of harassment and discrimination cannot be tolerated’.

The government proposes to legislate so that: no NDA provision can prevent disclosures to the police, regulated health and care professionals and legal professionals; limitations in NDAs are clearly set out in employment contracts and settlement agreements; and to enhance the independent legal advice given to individuals signing NDAs.

It will also produce guidance for lawyers on drafting settlement agreements, and introduce enforcement measures for NDAs that do not comply with legal requirements.

Beth Hale, partner and general counsel at employment law firm CM Murray, said: ‘The government is not, as indicated in some headlines, proposing to ban the use of NDAs in cases of sexual harassment.

‘Rather, they are focusing on the important issue of clarity and transparency for those signing such agreements and ensuring that the employment tribunal process is more user-friendly and accessible for individuals. Legislation will be introduced to ensure that all NDAs specify their limitations so that people understand what they are (and are not) prevented from disclosing―this will provide welcome clarity for all parties to NDAs.

‘The proposed changes, when combined with the likely introduction of a mandatory duty on employers to prevent sexual harassment in the workplace, provide significantly improved protections for individuals. It remains to be seen what happens to these proposals given the ongoing political upheaval. More than two years since the #MeToo movement began, we are still waiting for much needed legislative change in this area.’

Issue: 7862 / Categories: Legal News , Employment , Discrimination
printer mail-details

MOVERS & SHAKERS

Keystone Law—Milena Szuniewicz-Wenzel & Ian Hopkinson

Keystone Law—Milena Szuniewicz-Wenzel & Ian Hopkinson

International arbitration team strengthened by double partner hire

Coodes Solicitors—Pam Johns, Rachel Pearce & Bradley Kaine

Coodes Solicitors—Pam Johns, Rachel Pearce & Bradley Kaine

Firm celebrates trio holding senior regional law society and junior lawyers division roles

Michelman Robinson—Sukhi Kaler

Michelman Robinson—Sukhi Kaler

Partner joins commercial and business litigation team in London

NEWS
The government has pledged to ‘move fast’ to protect children from harm caused by artificial intelligence (AI) chatbots, and could impose limits on social media as early as the summer
All eyes will be on the Court of Appeal (or its YouTube livestream) next week as it sits to consider the controversial Mazur judgment
An NHS Foundation Trust breached a consultant’s contract by delegating an investigation into his knowledge of nurse Lucy Letby’s case
Draft guidance for schools on how to support gender-questioning pupils provides ‘more clarity’, but headteachers may still need legal advice, an education lawyer has said
Litigation funder Innsworth Capital, which funded behemoth opt-out action Merricks v Mastercard, can bring a judicial review, the High Court ruled last week
back-to-top-scroll