posted 21st July 2025
NDAs, and Why Are They Being Banned?
NDAs or confidentiality clauses have long been used in employment contracts, settlement agreements, and severance packages to restrict what an individual can say publicly about a workplace matter.
Originally designed to protect trade secrets and sensitive business information, NDAs have, over time, been abused to silence allegations of harassment, abuse, or unlawful treatment.
This practice has been widely criticised by campaigners, legal professionals, and MPs. In response, the Government has amended the Employment Rights Bill to make it illegal to use an NDA to prevent someone from speaking out about workplace harassment or discrimination.
The Changes Post-Reforms-Under the new provisions:
- Any clause attempting to suppress complaints of harassment or discrimination will be legally void.
- This includes confidentiality or non-disparagement clauses in employment contracts, grievance settlements, NDAs, or side agreements.
- The law also protects witnesses, giving them the freedom to speak publicly about what they have seen or experienced.
- These changes apply across the UK and will be enforced through employment tribunals and civil courts.
- This reform has been welcomed by campaigners, including Zelda Perkins (of the Can’t Buy My Silence movement) and MPs pushing for stronger protection of victims’ rights.
Key Risks for Employers
The legal change is straightforward in its intention, but if ignored, it poses serious risks to businesses:
Outdated Contracts
Employers using standard-form NDAs or boilerplate confidentiality clauses risk including unlawful terms. If challenged, these clauses will be struck out, and the employer could face reputational damage.
Invalid Settlement Agreements
Any recent or future agreements that include gagging clauses relating to harassment or discrimination could now be unenforceable, regardless of whether both parties signed them.
Whistleblower Exposure
If internal policies have not been updated, staff may still feel intimidated about speaking out. This can lead to regulatory breaches, public backlash, or Employment Tribunal claims for victimisation.
Reputational Harm
In the age of social media, failing to adapt to these legal reforms could lead businesses to be accused of trying to suppress victims or undermine employee rights.
How Can Meridian Legal Services Help?
- Review Employment Contracts
Examine any clause referring to “confidentiality,” “disparagement,” or “settlement terms.” Any restriction relating to personal disclosures of harassment or discrimination should be removed or redrafted.
- Audit Existing NDAs
If you’ve signed any NDA with a departing employee, ensure that it does not contain language that would now be unenforceable. If you’re unsure, contact us before any further disputes arise.
- Update Staff Handbooks and Policies
Revise internal documentation to reflect the new legal rights. Include clear guidance for victims and witnesses, and define how the company will support disclosures and protect employees from retaliation.
- Train Managers and HR
Ensure all internal decision-makers understand what has changed. Avoid sending mixed messages or outdated advice to team members. A short internal training session can prevent costly legal consequences later. Meridian Legal Services can provide your business with a bespoke workshop tailored to your requirements.
- Use Specialist Legal Support
SMEs often rely on informal arrangements, but this is an area where informal approaches no longer suffice. Working with an experienced legal provider like Meridian Legal Services can help you stay compliant and avoid costly mistakes.
Why This Matters to Small Businesses
For larger employers with in-house counsel, compliance may be handled internally. However, for SMEs that often face resource constraints and rely on standard templates or ad hoc HR support, this legal reform poses a significantly greater challenge, requiring a greater understanding of the Employment Reform Act.
Likely Consequences of This Reform
One of the foreseeable consequences is that the proposed reforms are likely to prejudice amicable settlements between employees and employers.
The offset of such reforms may hinder the settlement process, and employers may take the view that they now have nothing to lose by the employee taking their case to the tribunal. Whilst the tribunal is free, the outcome is out of the employee’s control, as well as the upheaval of the tribunal process.
Once the employer-employee relationship has descended into hostilities, the employee often just wants to draw a line under the matter and move on to pastures new. The proposed reforms are likely to hinder the amicable settlement route.
Meridian Legal Services Can Help.
At Meridian Legal Services, we offer fixed-fee audits, ongoing retainers, and bespoke legal support for small business owners who want to remain compliant without incurring the excessive fees often charged by traditional law firms.
We don’t work against business owners, we work with them.
Call us today on 0121 5160675.
