ENDING SILENCE ON SEXUAL HARASSMENT
Background
On 7 July 2025, the government introduced amendments to the Employment Rights Bill (ERB) aimed at limiting the use of non-disclosure agreements (NDAs) in cases involving harassment or discrimination. This will also capture confidentiality clauses in settlement agreements.
What’s changing?
A new section will be added to the Employment Rights Act 1996. It will make any NDA or confidentiality clause void if it tries to stop a worker from:
Raising allegations or disclosing information about harassment or discrimination, or
Talking about how their employer responded to those allegations.
This applies whether the conduct involves the employer or a colleague, and whether the worker was directly affected or not. It will not matter if the allegations were substantiated at all.
Any exceptions?
Yes. The Secretary of State will be able to set out exceptions when a worker wants confidentiality or can set rules on who they can safely disclose information to. These will be introduced through secondary legislation, so can be updated more easily than the main Act.
“This is a significant shift in employment law, aimed at improving transparency and tackling workplace misconduct.”
The government is clear: this is about preventing employers from silencing harassment and discrimination claims and not NDAs used for commercial reasons. A wider review of the whistleblowing framework is also on the way, with significant changes proposed in the latest round of the ERB.
What does this mean for employers?
This is a significant shift in employment law, aimed at improving transparency and tackling workplace misconduct. But it also means:
Settlement figures for these kinds of allegations will likely drop. If an employer wants to settle a potential claim due to potential reputational damage, but the worker can still discuss the allegation openly afterward, the incentive to pay over the odds to settle will disappear.
Proactive management of sexual harassment risk remains vital to prevent issues from escalating. Employers should consider risk assessments, training and policies and procedures aimed at reducing the risk of harassment at work.
Employers will also need to consider how they might manage the impact on others from reports of allegations, to prevent potential escalation where allegations have not been substantiated.
Any NDA or confidentiality clause (including in template settlement agreements) will need to be tailored to ensure they remain enforceable and valid.
If you have any questions about the proposed amendment, please let us know.
