How new NDA rules are reshaping the Employment Law landscape

Written by Marianne McJannett, Employment Law Partner

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Non-Disclosure Agreements (NDAs) have long been used to protect commercially sensitive information, but in recent years they have come under scrutiny for their misuse in cases of workplace harassment, discrimination and bullying.  

In such misconduct cases, NDAs have at times been applied to silence individuals, particularly to prevent disclosures about sexual harassment. By doing this, employees and witnesses have felt unable to speak up, leading to perpetrators facing limited accountability for their actions. 

Following growing pressures from campaigns and an increased degree of public awareness, momentum was created for change to the way NDAs can be used. As part of the Employment Rights Act 2025, significant reforms were introduced to stop these agreements being used to silence victims and conceal patterns of wrongdoing, signifying a move towards greater transparency and safer reporting environments. 

Why are changes coming into effect now? 

Calls to reform the use of NDAs have been building for years, gaining significant momentum when the #MeToo movement brought the issue of workplace harassment, and the barriers to speaking out, firmly into the public spotlight. 

This was followed by the ‘Can’t Buy My Silence UK’ campaign, a high-profile initiative aimed at stopping the misuse of NDAs to hide crime, harassment and discrimination. Its influence helped drive forward a series of legislative and policy developments. 

A 2024 Chartered Institute of Personnel and Development (CIPD) study also investigated how employers were tackling bullying and misconduct, finding that close to half of employers (48%) would support the introduction of a ban of the use of NDAs in cases of harassment and discrimination.  

These activities, alongside a host of others, culminated in the inclusion of NDA reforms in the Employment Rights Act 2025, which include targeted measures designed to prevent their misuse. 

What do employers need to know? 

At its core, the legislation introduces a statutory ban on the use of NDAs to silence individuals in relation to workplace harassment and discrimination. Any clause that seeks to prevent a worker from discussing such experiences will be unenforceable, meaning that individuals are free to disclose not only what happened, but also how their employer responded and the fact that a complaint was raised. 

Applying across contracts, settlement agreements and standalone NDAs, these changes were made to protect victims, witnesses and former employees and may expand further to include interns and independent contractors.  

As of 6th April 2026, protections have been strengthened further, with disclosures relating to sexual harassment now explicitly recognised as ‘qualifying disclosures’ under UK whistleblowing law. This reinforces employees’ rights to speak up without fear of detriment and increases the legal and reputational risks for employers who fail to respond appropriately. 

However, it is important for employers to note that these changes only target the misuse of NDAs, not abolish them altogether. 

Confidentiality agreements remain lawful and important when used appropriately. They can still be relied upon to protect trade secrets, commercially sensitive information, client relationships and proprietary data. Alongside this, where an NDA covers multiple provisions, only those elements that attempt to restrict disclosure of harassment or discrimination will be void under the new legislation. 

Looking ahead, further clarity on how changes will be managed is expected. A government consultation, which launched last week, is seeking views on the details underpinning new changes to NDAs. Part of this consultation will look at opinions on ‘excepted agreements’, which could allow for limited use of NDAs related to harassment or discrimination in specific circumstances. The outcome of this will be key to shaping how the new reforms work in practice. 

What happens now? 

HR professionals should take steps now to ensure their organisations are compliant. This includes reviewing and updating internal policies, settlement agreement templates and NDA wording. There should also be a renewed focus on preventing harassment in the first place, with stronger workplace cultures, robust HR processes, effective training and clear reporting pathways all playing a critical role.  

Care will be needed when drafting non-disparagement clauses, ensuring they do not inadvertently restrict an individual’s ability to discuss harassment or discrimination. Getting this balance right will be key to avoiding legal risk.  

Where there is uncertainty around how to navigate these changes, particularly alongside wider employment law reforms, seeking early legal advice is essential. Proactive guidance can help employers adapt with confidence, minimise risk and ensure their approach aligns with both the letter and the spirit of the new legislation.

If you’re unsure how these changes impact your organisation, our employment law team can help you review your policies and ensure compliance. Get in touch for tailored advice.