Non-disclosure agreements (NDAs) can be used to settle disputes quietly, effectively protecting the accused party. In return, the accuser typically receives financial compensation. In workplace disputes, NDAs are often part of broader settlement agreements.
Which complaints can’t be covered up by an NDA?
Currently, some complaints, like whistleblowing or reporting crimes, can’t be silenced by NDAs.
Controversially, NDAs in the UK can still be used to cover up sexual harassment allegations, though many countries (such as Ireland, Canada and the USA) have already banned them.
Proposal to ban the use of NDAs for sexual harassment allegations
Recently, a Liberal Democrat MP proposed an amendment to the Employment Rights Bill (ERB) to stop the use of NDAs to cover up sexual harassment. Although the Government rejected the proposal, it shared the concern that NDAs could be misused to silence victims of harassment, discrimination and bullying and promised to review the issue.
ERB solution? Categorise sexual harassment as whistleblowing
The ERB may already have provided the solution because it includes a provision adding sexual harassment to the list of whistleblowing protections. If enacted, sexual harassment allegations could no longer be silenced using NDAs as they would be protected by the wider ban on using NDAs in whistleblowing situations.
Whether the government will go further and have an outright ban on NDAs for sexual harassment is still uncertain.
Further reading
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