Amendments to the Employment Rights Bill: Banning NDAs That Silence Victims of Discrimination and Harassment

Summary

1. An amendments to the Employment Rights Bill will make non-disclosure agreements (NDAs) unenforceable if they prevent employees from reporting discrimination or harassment.
2. NDAs will no longer be allowed to stop disclosures to police, legal advisers, or regulated healthcare professionals.
3. Employers may still use NDAs to protect confidential business information, but not to suppress allegations of unlawful treatment.
4. The changes follow sustained public pressure and aim to protect victims and promote transparency in UK workplaces.
5. Non-compliance may result in unenforceable agreements, reputational harm, and scrutiny from regulatory bodies.

In July 2025, the UK Government confirmed that it would move to restrict the use of non-disclosure agreements (NDAs) in employment settings. The latest amendments to the Employment Rights Bill represent a significant reform, marking a clear shift in how NDAs can be used by employers.

For too long, NDAs have been criticised as tools for silencing victims of discrimination and harassment. The upcoming changes seek to end that practice by making such clauses legally unenforceable. While employers will still be able to use NDAs to protect trade secrets and proprietary information, they will no longer be able to rely on them to cover up unlawful conduct in the workplace.

What is an NDA?

Non-disclosure agreements are commonly used in settlement agreements, redundancy packages, and commercial contracts. Their original function is to protect confidential business information, intellectual property, and commercially sensitive data.

However, NDAs have also been used to prevent employees from speaking about their experiences of harassment, bullying, discrimination, or victimisation. In some cases, people have been led to believe that breaking silence, even to a solicitor or doctor, would breach the terms of their agreement.

Critics argue that this misuse of NDAs shields perpetrators, discourages accountability, and contributes to a culture of secrecy.

Campaigners, whistleblowers, and legal reform advocates have long called for change. Now, the history of NDAs in UK employment law is entering a new chapter.

What Will the Proposed Restrictions on the use of NDAs Achieve?

The amendments to the Employment Rights Bill make it clear that any NDA attempting to prevent a worker from reporting discrimination, harassment, or other unlawful treatment will be void and unenforceable.

Key features of the new law:

• Prohibition on silencing disclosures of harassment or discrimination through NDAs
• Protection for disclosures made to the police, legal professionals, and regulated healthcare providers
• Clarity that confidentiality clauses cannot override statutory rights to make protected disclosures
• Continuation of lawful NDAs for protecting trade secrets and commercial interests, provided they are not used to suppress complaints of unlawful conduct

The reforms reflect growing recognition of the ethical and legal problems associated with coercing silence. They offer a new standard of transparency and protection for UK workers, and campaigners have hailed the changes as putting the UK “at the forefront of global workplace protections”.

What are the Implications for Employers and Legal Advisors?

If the Bill is passed with the amendment, which is likely, employers will need to rethink how and when they use NDAs. Settlement agreements will need to be checked to ensure they do not include clauses that could unlawfully restrict disclosure of harassment or discrimination.

Steps employers should take if the Bill receives Royal Assent:

• Review existing NDA templates and standard settlement agreements
• Remove or amend any clauses that seek to restrict protected disclosures
• Train HR and legal teams on the new requirements
• Ensure that all agreements include clear wording outlining the employee’s right to speak to legal or medical professionals
• Provide access to independent legal advice for all employees entering into settlement agreements

The changes are likely to lead to greater public accountability, as more people may feel empowered to share their experiences without fear of legal consequences.

For those asking how new NDA rules affect employers UK, the message is clear: transparency is now a legal requirement, not a choice.

Why Has This Change Happened Now?

The reform has been driven by years of campaigning, legal scrutiny, and media attention on the harmful use of NDAs in employment disputes. Campaigns such as Can’t Buy My Silence, led by Zelda Perkins, have argued that confidentiality clauses have been used to cover up serious misconduct, sometimes over many years.

The Government has acknowledged the damage caused by this misuse. Employment Rights Minister Justin Madders said:

“The misuse of NDAs to silence victims of harassment or discrimination is an appalling practice that this government has been determined to end. These amendments will give millions of workers confidence that inappropriate behaviour in the workplace will be dealt with, not hidden.”

This legislative change also responds to ethical questions about coercion, access to justice, and the power imbalance often present in workplace disputes.

What are the Risks of Non-Compliance

Employers who fail to update their practices could face significant legal and reputational risks, including.

• Unenforceable agreements – Any NDA that unlawfully restricts protected disclosures will be void
• Reputational damage – Public exposure of improper NDAs can lead to negative media coverage and brand harm
• Regulatory scrutiny – Employers or their Solicitors may be investigated or sanctioned by regulators such as the Solicitors Regulation Authority (SRA) or the Equality and Human Rights Commission (EHRC)
• Civil claims – Employees may bring claims if they believe they were misled or pressured into unlawful confidentiality agreements

 

Now is the time to review compliance protocols, update templates, and ensure all staff involved in settlements are properly trained.

Conclusion

The NDA reforms in the Employment Rights Bill mean that employers will no longer be able to rely on sweeping confidentiality clauses to shield misconduct from public view.

The legislation provides workers with clearer protections, greater freedom to speak out, and a route to seek justice without fear of breaking a contract. For employers, the new law is a reminder to prioritise integrity and transparency in all aspects of dispute resolution.

FAQs

Can employers still include NDAs in Settlement Agreements after the changes?
Yes, but only for legitimate purposes such as protecting trade secrets or confidential commercial information. NDAs must not prevent workers from reporting harassment, discrimination, or other unlawful conduct.

What types of disclosures are protected under the new rules?
Employees can make protected disclosures to the police, solicitors, barristers, and regulated health professionals without breaching an NDA.

What wording should be used in new Settlement Agreements?
Agreements should include clear language confirming that confidentiality clauses do not restrict disclosures of unlawful treatment or prevent workers from seeking legal, medical, or regulatory support.

What happens if a worker is told they cannot speak out due to an NDA?
If the NDA restricts protected disclosures, it will be unenforceable. Employers risk reputational harm, legal claims, and regulatory intervention.

How can HR and legal teams prepare for the new rules?
Conduct a full review of NDA templates and policies. Deliver training to relevant teams and ensure all agreements provide for independent legal advice and lawful terms.

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