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UK bosses to be banned from using NDAs to cover up misconduct at work | Employment law

UK Cracks Down on Workplace Harassment Cover-Ups

In a move hailed as a major victory for workers’ rights, the UK government is set to outlaw the use of non-disclosure agreements (NDAs) that silence victims of harassment and discrimination in the workplace.

Sweeping Changes to Employment Law

Amendments to the government’s employment rights bill, expected to be introduced by ministers imminently, target the practice of using legally binding NDAs to conceal unacceptable workplace behavior.

According to the proposed rules, confidentiality clauses in settlement agreements designed to prevent workers from discussing allegations of harassment or discrimination would be rendered invalid.

This would empower victims to speak openly about their experiences. Witnesses, including employers, could also call out misconduct and support victims without fear of legal repercussions.

Protecting Workers, Ensuring Justice

These changes would not affect NDAs used for legitimate commercial purposes, such as safeguarding sensitive information or intellectual property. Instead, they aim to create robust protections for workers, ensuring that inappropriate behavior is addressed effectively.

For years, activists have campaigned to address concerns about workers who lack the resources or confidence to challenge “gagging orders.” The changes follow high-profile cases linked to the #MeToo movement, revealing the widespread use of NDAs to conceal misconduct.

Angela Rayner, the deputy prime minister, said: “Victims and witnesses of harassment and discrimination should never be silenced. As the Guardian has reported on widely, this is not an issue confined to high-profile individuals or the most powerful organisations.”

She added: “The use of NDAs to cover up abuse and harassment is growing – and sadly amongst those in low-income or insecure employment across multiple industries and workplaces… This cannot go on.”

According to a 2023 report by the Equality and Human Rights Commission, nearly one in five workers in the UK have experienced harassment at work in the last five years (Equality and Human Rights Commission).

Landmark Legislation

The legislation is poised to bring about the biggest overhaul of workers’ rights in a generation. It introduces day-one rights, establishes collective bargaining bodies, and strengthens family-friendly entitlements.

Over time, NDAs have become the go-to solution for many organizations, corporations, and public bodies to settle cases involving sexual misconduct, racism, and pregnancy discrimination.

While intended to protect intellectual property, they have evolved to prevent people from speaking out about workplace experiences.

Reports have shown that this practice has proliferated in lower-income, insecure employment sectors such as retail, hospitality, and accommodation.

Industry Response

A report by the Chartered Institute of Personnel and Development (CIPD) revealed that 22% of employers used NDAs when dealing with allegations of sexual harassment.

The CIPD also found that nearly half (48%) of employers would support a ban on NDAs in the workplace, with just 18% opposing it.

Zelda Perkins, a former PA to Harvey Weinstein and spearheads the campaign group Can’t Buy My Silence, said: “This is a huge milestone, for years we’ve heard empty promises from governments whilst victims have continued to be silenced.”

Perkins added: “Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.”

Zelda Perkins, who worked for Harvey Weinstein as an assistant in the 1990s, called the changes ‘a huge milestone’. Photograph: Antonio Olmos/The Observer

Louise Haigh, a former cabinet minister, said: “Victims of harassment and discrimination have been forced to suffer in silence for too long. Today’s announcement will mean that bad employers can no longer hide behind legal practices that cover up their wrongdoing and prevent victims from getting justice.”

Layla Moran added: “This would not have been possible without the brave students and victims who have shared their heartbreaking stories with me over the years…It has been a privilege to work alongside Zelda, Louise, and countless others to bring their voices to Westminster and raise awareness of the truly devastating impact misused NDAs can have on people’s lives.”

Global Trend

Legislative changes have already been implemented in Ireland, Canada, and the US to ensure that NDAs cannot prohibit the disclosure of sexual harassment, discrimination, or bullying without the employee’s explicit consent.

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