Curbing the misuse of Non-Disclosure Agreements

There can be good reasons for Non-Disclosure Agreements (NDAs.)

They can enable companies to share information which is confidential for legitimate reasons, such as proprietary technical secrets, with suppliers or customers, and they are sometimes necessary to help ensure that  regulatory requirements, such as "Chinese walls" to ensure fair and equal treatment, are kept.

(I've had to sign more than one NDA for reasons of customer confidentiality or regulatory compliance during the course of my business career.)

What they should not be used for is to silence whistle-blowers or the victims of misconduct such as sexual harassment.

So I'm pleased to see that the Conservative government has announced plans for new legislation to tackle the misuse of Non-Disclosure Agreements, creating fairer workplaces for all.

Key facts:
  • NDAs can be used by businesses for a number of legitimate reasons but in a minority of cases they are being abused and people who sign them have not always been made aware of their rights. 
  • New legislation will stop NDAs being used to prevent individuals from disclosing information to the police, regulated health and care professionals, or legal professionals, ensuring they cannot be used to silence and intimidate victims. 
  • This will work alongside the consultation which the government launched earlier this month which explores what more can be done at a practical level to ensure people are properly protected at work. 

Why this matters: 

This new legislation will stamp out misuse of NDAs, protect individuals and tackle unacceptable workplace cultures.

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