If your organisation uses non-disclosure agreements (NDAs) or confidentiality clauses in settlement agreements or employment contracts, read on.

New proposals could soon make it unlawful for employers to use NDAs to stop employees speaking out about harassment or discrimination at work.

In a post-#MeToo world, the UK government is moving to render certain NDAs unenforceable. Proposed amendments to the Employment Rights Bill (ERB) would, if passed, give stronger protection to anyone who has experienced – or witnessed – workplace harassment or discrimination.

If these proposals go ahead, they’ll apply to all UK employers, marking one of the most significant shifts in workplace protections in decades.

What’s changing?

Under the proposed amendments:

• Any confidentiality clause in a settlement agreement that stops someone disclosing harassment or discrimination will be null and void.
• Workers will be free to speak about their experiences, even after signing a settlement agreement.
• Witnesses to inappropriate behaviour will be protected if they choose to speak out.
• NDAs for legitimate commercial reasons – like protecting intellectual property or confidential business information – will still be valid.

While much of the debate focuses on large, high-profile organisations, these changes will affect all employers, no matter their size. Smaller businesses that rely on template NDAs or off-the-shelf settlement agreements could feel the impact most.

What this means for employers

For HR professionals and business leaders, this is a pivotal moment. NDAs have long been a practical way to settle disputes confidentially – but the government’s stance is clear: confidentiality must not come at the cost of accountability.

Here are some practical steps to take now:

Review your templates: Check your settlement and employment agreement wording. Any clause that prevents employees from talking about harassment or discrimination will soon be unenforceable.

Focus on culture: These reforms highlight the importance of a respectful, transparent workplace. Culture, not contracts, will be your best defence.

Train your managers: Make sure leaders understand what harassment and discrimination look like, how to handle complaints properly, and why these issues can’t be buried under paperwork.

Handle complaints fairly: NDAs will no longer be a shortcut to avoid reputational risk. Focus on thorough investigations and fair outcomes instead.

Why is this happening?

The reforms are part of a broader response to public pressure and high-profile cases from the #MeToo era. But this isn’t just about celebrity scandals. Research shows NDAs are commonly used in lower-paid sectors like retail and hospitality, where power imbalances can make employees more vulnerable.

According to a CIPD survey, one in five employers have used NDAs to deal with sexual harassment allegations – yet nearly half of those surveyed actually support a ban on these clauses.

Final thoughts

These proposals aren’t about stripping away employer protections – they’re about preventing misuse and rebuilding trust.

Employers that prioritise integrity, openness, and compliance will not only stay ahead of the law but also strengthen their reputation and workplace culture.

If you’d like support reviewing your current NDA templates or want to explore compliant ways to manage sensitive disputes, our team can help you get prepared. Contact: 0330 053 9345.