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30 October 2019
Issue: 7862 / Categories: Legal News , Employment , Discrimination
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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
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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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