The government will ban the use of non-disclosure agreements (NDAs) to prevent workers from reporting a crime, such as sexual harassment at work.
It intends to introduce legislation that will clarify that NDAs cannot be legally enforced if they prevent victims from reporting criminal conduct.
It will mean they will be able to speak to the police or other enforcement bodies, as well as lawyers, counsellors and medical professionals, without worrying about the repercussions of breaching any confidentiality clauses imposed by their employer.
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The Ministry of Justice said victims of conduct including sexual harassment or abuse will never be prevented from reporting crimes under NDAs once the legislation is enacted, but it has not announced a timeline for the ban.
However, other parts of confidentiality agreements covering commercially sensitive information, financial agreements and any other obligations unrelated to criminal conduct will retain their legal effects.
Last month the Legal Service Board found that NDAs have “devastating” impacts on individuals, as the worry about breaching a confidentiality clause can affect their mental health.
In 2021, Conservative MP Dame Maria Millier introduced a private members’ bill that sought to ban the use of NDAs in sexual harassment cases.
Justice secretary Alex Chalk said: “We are bringing an end to the murky world of non-disclosure agreements which are too often used to sweep criminality under the carpet and prevent victims from accessing the advice and support they need.
“Our changes will clarify in law once and for all that these gagging orders cannot be legally enforced against victims to prevent justice from being delivered and their voices being heard.”
Victims and safeguarding minister Laura Farris said: “Sexual harassment is unlawful in the workplace, and it is unacceptable that a few unscrupulous employers have previously sought to construct confidentiality clauses in settlement agreements, that suggest victim cannot report a crime to the police. This has never been the case and today we are making that crystal clear in law.
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“I want to thank all those who have campaigned for change in this area, including Dame Maria Miller, for their help in achieving this.”
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