The Misuse of NDAs: What the Latest Reforms Mean for Employees
The Misuse of NDAs: What the Latest Reforms Mean for Employees
Non-disclosure agreements (NDAs), under which employees promise to keep quiet, have long been used in employment contracts and settlement agreements to protect an employer’s business and maintain confidentiality when workplace disputes are resolved. However, growing concern about the misuse of NDAs to silence victims of harassment, discrimination, or criminal conduct has led to significant legal reform to protect employees.
The issue of NDAs originally surfaced following infamous Harvey Weinstein cases. This issue has resurfaced after claims that NDAs were used to prevent victims of the late Harrods boss, Mohamed Al Fayed, from speaking out, prompting renewed public and political focus on tightening the law.
Latest Government Action on NDAs
On 21 October 2025, the Government announced plans to expand the ban on NDAs for victims of crime under section 17 of the Victims and Prisoners Act 2024.
Currently, section 17 provides that any NDA signed after 1 October 2025 is void to the extent that it prevents a victim of crime (or a person who reasonably believes they are a victim of crime) from disclosing details of criminal conduct to certain specified persons for specific purposes, such as:
- Reporting to the police or law enforcement;
- Seeking advice from a qualified lawyer; or
- Contacting victim support services in relation to criminal conduct.
However, disclosures such as discrimination that falls short of criminal conduct made to other individuals or for purposes not specified in the legislation are currently not protected and may still be restricted by an NDA.
The Government has now proposed to expand section 17 through an amendment to the Victims and Courts Bill, which began its House of Commons Report Stage on 27 October 2025. If passed, the amendment will remove the current restrictions on who victims can speak to or why, meaning an NDA will no longer be enforceable if it prevents a victim from making an allegation or disclosure about criminal conduct, regardless of the recipient or purpose.
The revised section 17 will not apply to certain “excepted agreements”, to be defined in secondary legislation. The implementation date for these amendments has not yet been confirmed.
In the meantime, the Government has confirmed that the draft Victims and Prisoners Act 2024 (Permitted Disclosures) Regulations 2025, which will expand the list of permitted persons under the existing version of section 17, will be debated “shortly”.
Parallel Developments in Employment Law
At the same time, a separate piece of legislation, the Employment Rights Bill 2024-25, will make similar changes specifically for the workplace.
Importantly, under the Bill, any provision in a settlement agreement, employment contract, or other NDA will be void if it attempts to prevent a worker from making an allegation or disclosure about work-related harassment or discrimination that falls short of criminal conduct but is nevertheless unlawful.
This means:
- NDAs can no longer be used to silence employees who have experienced harassment, discrimination, or other unlawful behaviour at work;
- Employees remain free to speak about their experiences to colleagues, advisers, or law enforcement without fear of breaching confidentiality;
- NDAs will still have a legitimate role in protecting trade secrets or commercially sensitive information, but their use will be much more limited and tightly regulated or making other damaging statements about an employer’s business.
The Victims and Courts Bill reform applies to everyone, while the Employment Rights Bill reform is specific to the workplace. Together, they form part of a broader government strategy to end the use of NDAs to suppress allegations of misconduct.
What This Means for Employees
For employees, these changes provide stronger protection and greater clarity. Workers who have suffered discrimination, harassment, or other unlawful treatment will be able to report their experiences freely, even if they have signed an NDA or settlement agreement.
This is expected to:
- Encourage reporting of workplace misconduct;
- Promote a more open and accountable organisational culture;
- Ensure NDAs are used only for legitimate purposes; and
- Avoid exploitation by offering large sums of money to keep quiet
Next Steps
Employees should always seek independent legal advice before signing an NDA, and indeed must do before signing a settlement agreement.
As specialist employment solicitors, we can advise employees who have been asked to sign a settlement agreement or non-disclosure agreement that require the employee to sign up to promises of confidentiality and not to make damaging statements about the employer or its directors and employees, ensuring they fully understand their rights. We can review the terms of any NDA, explain whether it is enforceable, and advise on what can and cannot lawfully be kept confidential. These forthcoming changes are an important step towards greater transparency and protection for employees, and we are here to help clients navigate them confidently and secure fair outcomes.
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At Springhouse Solicitors we offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.
Disclaimer
The above provides a general overview of areas in employment law and is not intended nor construed as providing specific legal advice. This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.
27.10.25
