In the wake of the controversy surrounding the misuse of Non-disclosure Agreements (NDAs) and settlement agreements, the UK government has announced they will be introducing new legislation to crack down on abuses of the system. There has been mounting pressure on ministers to act, following revelations that some prominent figures have been using so-called ‘gagging clauses’ to silence former employees who have accused them of sexual misconduct.
New proposals announced by the Department for Business, Energy and Industrial Strategy mean that individuals being asked to sign an NDA would have to receive independent legal advice, in order to fully understand the limitations of the agreement. The advice will stress that information may still be passed on to the police, doctors, lawyers, solicitors and social workers.
The misuse of NDAs came to light after the Harvey Weinstein case, after it was revealed that the Hollywood director had liberally used gagging clauses to silence women who accused him of sexual harassment and assault. More recently it was revealed that prominent British businessman Philip Green had also exploited the system, to silence former employees accusing him of racial abuse and sexual harassment in the workplace.
The #MeToo movement has galvanised the government into taking action, having campaigned tirelessly for the rules surrounding gagging clauses to be re-examined and better regulated. Once the new laws are passed, employees making a complaint against a former employer will be entitled to independent legal advice setting out who they can speak to and how much they can reveal.
It is hoped that new legislation will prevent powerful individuals abusing a system which has largely gone unchecked until now. By closing the loopholes which have allowed employers to gag their critics, it’s likely many more people will now come forward to make formal complaints for past abuse.
If you feel you have been unfairly treated by an employer, then Nalders LLP can help. Whatever the nature of your claim, we’re one of the top legal firms in Cornwall and have expert knowledge when it comes to Non-disclosure Agreements and the implications of the new legislation. For further advice, please don’t hesitate to contact us today.