NDAs: New restrictions enforced from October

Non-disclosure agreements (NDAs) are legal contracts (or provisions of legal contracts) that require a person to keep certain information to themselves and not speak about it to others, usually for payment or something of value. For this reason, they are sometimes referred to as ‘gagging clauses’.  

In an employment context, they are often used to maintain the confidentiality of settlement terms (or the events leading up to such terms being agreed). The use of NDAs has come under increasing criticism in recent years for being used to cover-up misconduct, for example, by the #MeToo movement and high-profile examples (such as Mohamed Al Fayed and Harrods).

With their use being restricted in new areas with effect from 1^st October 2025, we summarise the current legal position regarding NDAs, and where it is headed.

The current position

Currently NDAs are void if they:

• prevent an individual from reporting a crime to the police
• prevent a worker from whistleblowing
• prevent a member of staff, student or visiting speaker in a higher-education setting from disclosing sexual abuse, sexual harassment or sexual misconduct, or any other bullying or harassment.

NDA rules from 1st October 2025

On 1st October 2025, new restrictions on the use of confidentiality provisions under the Victims and Prisoners Act 2024 came into force. These make clear in statute that:

• NDAs can’t be enforced if they seek to prevent victims from reporting crime to the police.
• NDAs can’t be used if they impede victims’ access to confidential advice and support needed to cope with and recover from the impact of crime. 

Employers, HR and legal teams need to make sure that their standard settlement wording is amended to carve out these additional disclosures.

Further reading

• Employment Rights Bill – January 2025 update – Hunter Law
• Your rights under the Equality Act 2010 | EHRC