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The UK Government has announced plans to outlaw the use of non-disclosure agreements (NDAs) that prevent employees from speaking out about workplace harassment, discrimination, or abuse. The reform forms part of a wider overhaul of employment rights and is expected to become law later this year.

Amendments will be made to the Employment Rights Bill to render unenforceable any contractual terms—including confidentiality and non-disparagement clauses—that seek to stop individuals from reporting or discussing unlawful workplace behaviour.

Targeted reforms to end “gagging clauses”

The changes were confirmed on Monday by Deputy Prime Minister Angela Rayner, who described the practice of silencing victims through NDAs as “shameful.” Under the reforms, it will no longer be possible for employers to use contractual clauses to prevent victims or witnesses of harassment or abuse from speaking publicly or making disclosures.

Employment Rights Minister Justin Madders said:

“It is appalling that some workers are put in a position where they are unable to speak about abuse due to legally drafted clauses. This change will give people the confidence to speak out.”

The proposed amendment to the Employment Rights Bill will make it unlawful for employers to enforce NDAs that silence complaints relating to:

• Sexual harassment
• Racial or other unlawful discrimination
• Bullying or intimidation
• Other forms of workplace abuse or misconduct

Existing NDAs that fall within the scope of the changes may also be affected.

Narrow focus on misconduct and abuse

The reforms apply only to NDAs that cover misconduct. Employers will still be permitted to use NDAs to protect commercially sensitive information or intellectual property.

This distinction was highlighted by campaigners and lawyers who welcomed the government’s effort to avoid a blanket ban. The move is aimed at closing legal loopholes while preserving legitimate uses of confidentiality clauses in commercial arrangements.

Response from campaigners and professionals

The changes follow a long-running campaign by former Weinstein assistant Zelda Perkins, who founded the Can’t Buy My Silence initiative after signing a gagging agreement in the 1990s. Perkins described the government’s announcement as “a huge milestone” and called for effective enforcement mechanisms.

Campaigning MPs Louise Haigh and Layla Moran also supported the ban. Haigh said:

“This is a major victory for victims of workplace harassment. NDAs should never be used to shield wrongdoing.”

The move has also gained support among professionals. A survey conducted by the Chartered Institute of Personnel and Development (CIPD) found that 48% of employers supported a ban on NDAs in harassment cases, while 22% had previously used them in such contexts.

How the new rules will work

The reforms will:

• Invalidate NDAs and non-disparagement clauses that attempt to silence allegations of workplace harassment or discrimination.
• Apply to both victims and witnesses, allowing individuals to support one another without risk of legal liability.
• Include settlement agreements, making clear that clauses preventing disclosure of misconduct will not be legally binding.

The government has indicated that the legislation may also apply retrospectively, raising the possibility that existing NDAs could be overridden by the new law. Further guidance is expected following the Bill’s passage through Parliament.

International and domestic context

The UK follows a growing international trend in regulating the use of NDAs. Similar measures have already been introduced in Ireland, Canada, and several US states, including New York and California.

In the UK, pressure has built over recent years amid reports that NDAs have been used to suppress allegations of sexual harassment, racism, and other unlawful conduct across various sectors. The Government previously consulted on the issue, and campaigners have since pushed for legislative change.

Wider employment law reform package

The NDA ban is one part of a broader employment law reform agenda introduced under the new government. Additional proposals include:

• Day-one rights to sick pay and parental leave
• Stronger protections for pregnant workers and those experiencing pregnancy loss
• Restrictions on controversial “fire and rehire” practices
• Enhanced enforcement of workers’ rights and support for Employment Tribunal claims

Deputy Prime Minister Angela Rayner has described the reforms as “the most significant expansion of workplace rights in a generation.”

Implications for employers

Legal commentators have noted that employers should begin reviewing internal policies and employment contracts to ensure compliance once the new law takes effect.

While NDAs used in the context of business protection will remain valid, those included in settlement agreements relating to harassment or discrimination will require careful scrutiny. Employers are advised to seek legal advice to update their documentation and approach to workplace investigations and dispute resolution.

Next steps

The proposed amendments will return to the House of Lords for review, with the changes expected to become law later in 2025.

Once enacted, the ban will come into force immediately. Employers found to be using unenforceable NDAs may face legal and reputational consequences, while employees will be able to speak openly about their experiences without fear of breaching contractual terms.