Employee Rights Bill – Update – ban on NDA’s

At the beginning of this week, the government announced that a new clause 22A will be introduced into the Employment Rights Bill.

What is changing?

This is going to be a significant change as it will impact on an employer’s decision whether or not to settle a claim for harassment or discrimination.

The proposal means that employers would be banned from using confidentiality clauses in documents such as settlement agreements to try and stop a worker from disclosing details about allegations of discrimination or harassment (as defined in the Equality Act).

It will cover any agreement, not just employment related agreements.

What should employers be doing?

When this comes into effect, employers should by that point have reviewed their policies on settlement agreements and the wording of any confidentiality clause to ensure that they comply with the new legislation.

It may mean fewer employers are prepared to settle claims, leading to increased tribunal claims.