Employers will not be able to use confidentiality agreements to stop workers from reporting crimes, harassment or discrimination to the police under toughened government legal measures to be proposed today.
Business Minister Kelly Tolhurst will announce the rules around non-disclosure agreements (NDAs) and confidentiality clauses are set to be tightened under new legal proposals.
Many businesses legitimately use NDAs and confidentiality clauses in agreements to prevent disclosure of confidential information.
However, in recent months there has been increasing evidence to suggest that NDAs and confidentiality clauses are being abused by a “very small minority” of employers to intimidate whistleblowers, conceal harassment and discrimination incidents – including sexual assault, physical threats and racism.
It is hoped today’s proposals will help put an end to the unethical use of these agreements and encourage good practice from employers and lawyers.
Prime Minister Theresa May said: “Sexual harassment is against the law and discrimination of any kind will not be tolerated – in the home, the workplace or in public.
“Over the past couple of years, we have seen brave individuals breaking silence on such behaviour, but too many are still facing the unethical misuse of non-disclosure agreements by their employers.
“We’re sending a clear message that a change in the law is needed to ensure workers are able to come forward, be aware of their rights and receive the advice they need before signing up to them.”
Business Minister Kelly Tolhurst added: “Many businesses use Non-Disclosure Agreements and other confidentiality agreements for legitimate business reasons, such as to protect confidential information.
“What is completely unacceptable is the misuse of these agreements to silence victims, and there is increasing evidence that this is becoming more widespread.”