NDAs cannot stop staff going to the police, lawyers or doctors

New legislation will iterate that companies cannot use non-disclosure agreements (NDAs) to prevent staff from going to the police, lawyers or doctors. 

The new Government proposal aims to cut down on misuse of NDAs in the workplace and prevent companies from using "gagging orders" to cover up wrongdoing including sexual harassment and racial discrimination. 

This also requires employers to set out these terms in "plain English" in any written agreements, to make sure that employees understand the limitations of the NDA. 

It also ensures that anyone who needs to sign an NDA should get independent legal advice, otherwise it will not be considered valid. 

Current legislation on NDAs still allow employees to report wrongdoing to the police however it has been noted that individuals have been "misled or… under the impression that they were unable to report to the police" said Kelly Tolhurst, business minister. 

One example of this was exposed by The Telegraph when NDAs were used by Topshop owner, Sir Philip Green, after employees alleged that he committed sexual assaults and racial discrimination. Sir Philip denied the allegations. 

However, the changes have been criticised by some groups. Campaigners such as The Women and Equalities Committee have suggested that the changes do not go far enough and there should be a complete ban on companies using NDAs to cover up wrongdoing such as sexual harassment or discrimination in the workplace.

Rebecca Hilsenrath, Chief Executive of the Equality and Human Rights Commission said: "Harassment and discrimination should never go unanswered and unchallenged just because victims are prevented from speaking out. This new legislation will help to end ambiguity about employees' rights and stop the misuse of NDAs to protect corporate and personal reputations and obstruct justice."

The new legislation does not yet have a date for enactment however Ms Tolhurst said there is "no intention to sit on it". 

Derby Crime Solicitors