The UK’s Employment Rights Bill, hailed as “the biggest upgrade to workers’ rights in a generation” by its advocates, introduces a set of landmark guarantees which range from day‑one rights and protections, to flexible working, sick pay, and expanded parental leave. Although tabled in October 2024, the legislation is only expected to take effect by April 2026 at the earliest.
The introduction of this Bill has one facet that has created a lot of chatter in recent weeks. A new amendment seeks to prevent companies and businesses from “abusing” Non-Disclosure Agreements (NDAs), whereby they are used to conceal abusive and unacceptable behaviours in the workplace. This “anti-whistleblower” practice could soon face a complete ban, potentially voiding future NDAs that stop workers from flagging discrimination, harassment, or misconduct.
Launching a new policy does come with drawbacks, however. The government has already had to issue a statement dismissing claims made by tabloid publications, which even went as far as to suggest this new law would “ban workplace banter” entirely. With the NDA amendment also set for further media scrutiny, it’s important to highlight what exactly does – and does not – feature in the text.
The amendment does:
It does not:
In summary, the amendment specifically targets clauses aimed at gagging individuals about harassment or discrimination, and not lawful commercial terms.
Trade Unions and workers’ rights groups have hailed both the Bill and the subsequent amendment as a significant victory for British employees. However, from a business perspective, there is both reward and risk that need to be considered.
How would a change in NDA laws benefit workplaces?
Shutting down NDAs which solely serve to obscure questionable behaviour and practices may well create a more open and honest dynamic in the workplace, and has the potential to create clear channels of feedback and higher standards of conduct company-wide. A poll conducted by the Chartered Institute of Personnel and Development (CIPD) indicates that the removal of these specific NDAs is backed by 48% of those asked, with only 18% outright opposing. Just over one in three remained non-committal, but the lack of dissent among those questioned shows that the implementation of this legislation could quite easily avoid widespread backlash.
Zelda Perkins, founder of the campaign Can’t Buy My Silence UK and former PA to Harvey Weinstein, is one of the leading voices in support of the amendment. She has hailed the proposed changes as “world-leading” and hopes similar laws will be brought in elsewhere. She went on to explain “This is a huge milestone. For years, victims have continued to be silenced, and only now are we understanding the scale of the abuse of power that has taken place. If what is promised at this stage becomes reality, then the UK will be leading the world in protecting not only workers but the integrity of the law.”
What is more, these changes could also present an overall net-benefit for businesses by stopping reputational issues at source. A structured change in culture that applies to all levels of authority within the workplace can serve as the greatest defence available. Early intervention, paired with transparent and accessible grievance systems, can prevent minor issues from becoming major ones.
Potential risks and consequences for businesses
Alas, there are also some harsh practicalities that we have to take into account. Increased accountability in the workplace is, quite rightly, something to be lauded. However, the use of NDAs is a powerful tool that businesses use to protect themselves against rogue elements and the behaviour of individuals that do not align with their core values. When a lever that is used to protect against such actions is removed, what does that mean for a business’s reputation?
NDAs have historically been used as a form of risk management. By removing the ability to suppress reputationally harmful claims, businesses are exposed to the possibility of allegations – whether true or false – being made public before any investigation or due process takes place. The way that companies investigate, respond, and remediate an issue can also be publicly scrutinised.
In cases of unfounded claims, employers may find it more difficult to protect their name or leadership from early reputational damage. Stephen Simpson, Principal HR Strategy and Practice Editor at Brightmine, has expressed his concerns about the “lack of choice” this could give to employees who want to reach a settlement with little fuss. In some cases, Simpson states, this can be “the most constructive option”, and the outlawing of these NDAs may limit the ways in which employees can choose to deal with the situation.
He added “When used responsibly, NDAs can provide a pragmatic route to resolution. They aren’t about silencing victims, they are about offering choice. Transparency is vital – but so is choice.
“While some individuals rightly want to speak out, others simply want to move on from a difficult situation with dignity and a financial safety net. For them, a confidential settlement can be the least damaging and most constructive option.”
Furthermore, there are also administrative hurdles to clear. Both HR and Legal departments will have to make substantial changes to their internal systems and handbooks. This has the scope to include updating and rewriting contracts, organising training sessions to understand the practical effects of a potential law change, and adjusting processes which allow for grievance reporting.
Workplaces need to prepare – but for what, exactly?
The changes to NDAs will have the power to both enhance good internal governance and present new reputational risks to be navigated with care. For now, the Employment Rights Bill and its various amendments are subject to the Parliamentary process and are still under review in the House of Lords. Change is coming, but right now, it is difficult to know what exactly to prepare for.
Employment law specialists Butcher & Barlow suggest that the biggest adaptations will come in the form of companies having to rewrite settlement policies, and the need to overhaul entire complaint-filing and dispute-resolution procedures. They also note that there has, so far, been little in the way of consultation between the government and the business community. This alleged lack of communication risks keeping workplaces in the dark and creating a cloud of doubt over the new legislation.
Either way, these developments mark another new chapter in the rapid evolution of the modern workplace. Following the great online migration in the first decade of the 20th century, the last five years have moved at an even greater pace. Accelerated by a worldwide pandemic and subsequent work-from-home directives, along with changing attitudes towards acceptable professional practices, the corporate landscape has experienced a major culture shift since 2020. And, as these “new norms” eventually shed their prefix, employment law must also catch up with the modern era. Once again, the office ecosystem is facing change – and workplaces will have to adapt accordingly.
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