New law for NDAs - what impact will it have?

The changes intend to clarify that NDAs cannot be used to prevent victims reporting a crim, or seeking help from lawyers, counsellors and medical professionals.  

 

Ian highlighted that the rules will not prevent NDAs being used for non-criminal issues such as bullying. The main benefit seems to be greater clarity, which should make employees feel more confident seeking support that they are entitled to. 

 

The changes could potentially benefit employers by removing some of the stigma of using NDAs, but employees might expect more incentive to sign away their rights. Settlements can benefit both parties so employers should consider negotiating settlements, even if this means offering larger settlements or removing NDAs. 

 

However, employers should be prepared for employees to refuse non-disclosure agreements. In such cases, the employer’s might need to publicly stand behind their actions or accept they made a mistake and work to improve. If an employee refuses the NDA, they are free to disclose that one was offered, and so employers might need to justify the suggestion. 

 

The best way for employers to prepare is to review their processes and policies, and seek legal advice to highlight any areas of risk. Employers can be more confident responding publicly to disputes if they are sure they are acting legally. 

 

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