UK to Ban Use of NDA’s to Silence Workplace Misconduct Victims
The UK is poised to implement one of the most significant changes to employment law within the workforce post-COVID. On 8 July 2025, the Government confirmed it would table amendments to the Employment Rights Bill that would prohibit the use of non-disclosure agreements (NDAs) to silence victims of harassment and discrimination in the workplace.
If passed, these amendments will represent a step forward in protecting employee rights and in supporting accountability in the workplace.
The End of “Gagging Clauses” for Misconduct
Under the proposed reforms, confidentiality clauses within settlement agreements will be rendered void if they seek to prevent employees from speaking out about workplace harassment, including sexual harassment, or discrimination of any kind.
This means:
- Victims of misconduct will be legally protected when disclosing their experiences, regardless of any NDA they may have signed;
- Witnesses and colleagues who wish to support victims or expose inappropriate conduct will be able to do so without fear of litigation;
- Employers who rely on NDAs to shield reputational risk arising from internal misconduct will no longer be able to do so.
Importantly for employers, this legislation does not affect the legitimate use of NDAs in commercial contexts, and does not affect the ownership of the company to intellectual property, trade secrets, or sensitive business information in transactions. It simply draws a clear and enforceable line between commercial confidentiality and the suppression of unlawful conduct within the workplace.
A Long-Awaited Reform
Over the past decade, there has been growing public and political concern about the misuse of NDAs to silence victims. Reports by the Chartered Institute of Personnel and Development (CIPD) show that NDAs remain a common fixture in workplace dispute resolution:
- 22% of employers admitted using NDAs in cases involving sexual harassment;
- 65% of respondents were unaware of whether their organisation used NDAs for purposes of alleged sexual harassment, highlighting poor governance and lack of transparency;
- Private sector organisations are significantly more likely to use NDA’s (25%) compared with public and voluntary sector organisations (16% and 9%, respectively)
Critics have long argued that NDAs have enabled a culture of impunity in which employers settle allegations behind closed doors without taking steps to rectify the organisational failings. The new legislation seeks to end this culture and restore integrity to workplace complaint mechanisms.
Legal and Practical Implications for Employers
Employers will need to review and amend standard settlement agreement templates for compliance, restructure internal grievance procedures, and avoid including clauses that attempt to suppress disclosures that relate to the Equality Act 2010. HR teams and legal advisors must also be prepared to the regulatory shift in attitude, with the Government expressly committed to strengthening employee voices, particularly those in low-paid or precarious roles, where power imbalances are most pronounced.
A Global Leader in Workplace Protection?
If enacted, the UK will join jurisdictions such as Ireland, Canada, and several US states in prohibiting the use of NDAs to cover up workplace misconduct unless initiated by the employee. Advocates of the reform have described this as potentially creating one of the most protective legal frameworks in the world for workplace dignity and transparency.
The Employment Rights Bill, with these NDA reforms included, is expected to return to the House of Lords next week, with legislation potentially passing by late summer 2025.
Conclusion
This legislative shift represents a pivotal turning point in the treatment of workplace misconduct in England and Wales. While it presents challenges for employers accustomed to private settlements, it also offers an opportunity to build more ethical, accountable, and transparent workplace cultures.
Our Employment Law team is closely monitoring the progress of the Bill and stands ready to assist employers and employees in navigating the upcoming changes.
