UK: Non-Disclosure Agreements to be Limited
Authors: Frances Ross and Charlotte Stern
The Employment Rights Bill is still making its way through Parliament. Several amendments have been suggested by members of the House of Lords. You can read more about them here.
The latest version of the Employment Rights Bill now includes a proposal that would make Non-disclosure Agreements (NDA) covering harassment and discrimination between an employer and worker void.
Whilst in the context of the #MeToo movement, various groups have been advocating for a ban on NDAs for some time, this was not included in the initial draft of the Bill.
Key Action Points for Human Resources and In-house Counsel
It goes without saying that a ban on NDAs would have a big impact on employers who routinely include non-disclosure and non-disparagement clauses in settlement agreements. The Government has indicated it may allow some NDAs in an ‘excepted agreement’. We will have to wait for more detail on this.
