During a parliamentary debate led by Louise Haigh, Labour MP, colleague and former employment solicitor Sarah Russell criticised the widespread use of useless NDAs. These agreements are often outdated and recycled by unregulated HR consultants. However, due to the insufficient financial support provided to low-paid workers for adequate legal advice, they often sign NDAs without fully understanding their implications.

Below, we examine what Sarah Russell MP said and the impacts of insufficient funding on low-paid and vulnerable employees. We also take a broader look at the fight against the misuse of NDAs, discussing arguments from other Labour Party members, including Louise Haigh and Sarah Owen.

If you’ve been asked to sign an NDA and have any questions, please reach out to Settlement Agreement Lawyers now. As employment law specialists, we can assess your circumstances, answer your queries, and provide expert advice. Should you require it, we can also assist in settlement negotiations, ensuring you reach an optimal outcome.

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Sarah Russell MP and Her Fight Against Useless NDAs

MP Sarah Russell has asserted that the current system governing non-disclosure agreements fails to protect vulnerable employees from being silenced. She joins the former transport secretary Louise Haigh in this debate, who recently called for a ban on their use in cases of harassment, abuse, or discrimination unless the victim requests one.

Under the Employment Rights Act, settlement agreements are only valid if employees receive independent legal advice before they sign NDAs. While employers aren’t legally required to pay for this advice, they commonly contribute toward the cost. Unfortunately, according to Russell, the typical sum offered—usually around £250—is grossly insufficient. This contribution fails to cover the costs of the support required to understand these complex legal documents properly.

Russell stated, “The reality of the legal market is that no specialist employment lawyer will explain a potentially 20-page legal document to the person, send them follow-up written advice and renegotiate the terms for £250.”

However, there’s more. Russell adds that useless NDAs remain so widespread because of the continued reliance on outdated documents. Many employers use settlement agreements drawn up years ago—often by solicitors—but now recycled by unregulated HR consultants.

These NDA templates, Russell explained, frequently contain clauses that are no longer compliant or appropriate. Yet, without proper legal oversight, they’re still routinely issued and signed—often by workers who don’t fully understand their implications. While Russell noted that many HR consultants act in good faith, she stressed that this system enables the unchecked use of useless NDAs.

The Legal Advice Gap That Silences Vulnerable Workers

Although employers may financially contribute to the advice provided before employees sign NDAs, as Russell has mentioned, it’s not enough. Since recognised employment lawyers won’t supply the advice required for £250, low-income workers are either turned away from specialist help or accept poor-quality legal advice.

Even when they manage to obtain a brief consultation with a solicitor, they often run out of money before they can engage in meaningful legal discussion. In worst-case scenarios, this can cause such individuals to sign an NDA without fully understanding the consequences.

This “systemic” problem, Russell argues, can only be resolved if legal safeguards are established to ensure workers are properly informed and protected from signing these useless NDAs. She called for the introduction of standardised wording that couldn’t be altered by employers or HR consultants. She claims this will ensure that all non-disclosures are legally compliant and don’t inadvertently silence victims of workplace abuse.

Louise Haigh and Other MPs Fight Against Misuse of NDAs

The sentiments of Sarah Russell MP echoed those of her colleague, Louise Haigh. The Labour MP for Sheffield and former transport secretary called for the parliamentary debate to discuss ending the misuse of non-disclosures.

During discussions, Haigh labelled NDAs as a “tool of oppression.” She stated that non-disclosure agreements disproportionately affect women, low-income workers, and vulnerable groups, adding, “It is only those with the means and the confidence to pursue their employers through the courts who can challenge these practices.” Such practices are problematic, especially since they often stop victims from discussing their experiences with legal and medical professionals, preventing them from fully recovering.

Haigh isn’t alone in her concerns, though. While debating, Labour MP Sarah Owen highlighted the prevalence of NDAs in cases involving pregnant women and mothers. Owen revealed that 435,000 pregnant women and mothers in the UK have signed NDAs, with many feeling pressured to leave their jobs or reduce their working hours as a result. These statistics underscore the extent to which NDAs are being used to silence workers who have experienced discrimination or mistreatment.

Government Response: Business Minister Justin Madders Weighs In on Useless NDAs

Business minister Justin Madders provided a government response to the MPs’ calls. He acknowledged that non-disclosures mustn’t be used to cover up misconduct and admitted more needs to be done to prevent them from silencing more victims. He also agreed with Russell that unregulated HR consultants perpetuate the problem by recycling outdated NDA templates.

That being said, he emphasised that any changes shouldn’t create new loopholes for “clever lawyers” to exploit. He also said they shouldn’t prevent individuals from signing an NDA if they choose to. As a result, the debate surrounding useless NDAs and their misuse will likely roll on, as MPs, legal professionals and campaigners continue to fight for comprehensive legislative reforms.

Questions About NDAs? Contact Settlement Agreement Lawyers

We hope you found this latest employment insight concerning useless NDAs helpful. If you have any further questions or believe your employment rights have been breached, please contact us today. Settlement Agreement Lawyers are sector specialists, and following a brief consultation, we can discuss your possible next steps. We can also assist you through the legal process if you want to claim and are eligible to do so.

Begin your journey with us today by:

• Phoning us on 0800 464 7254
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