NDAs
Ministry of Justice announces new legislation to restrict their ‘misuse’
NDAs: Ministry of Justice announces new legislation to restrict their ‘misuse’
NDAs: Ministry of Justice announces new legislation to restrict their ‘misuse’
The Ministry of Justice has recently announced plans to legislate to restrict non-disclosure agreements (NDAs) from being ‘misused to silence victims’. NDAs are commonly signed as part of a settlement. They aim to prevent the employee from revealing certain details (usually the factual background to the settlement and the fact a settlement has been agreed). NDAs are currently legally permissible in most circumstances.
The ‘misuse’ on NDAs has been heavily criticised in the press in recent years, and some efforts having already been taken to clamp down on their use (for example, solicitors are now under regulatory obligations to limit the use of NDAs and ensure they are drafted fairly).
In summary, the MOJ proposes new legislation (to be introduced as soon as parliamentary time allows) that will clarify that NDAs cannot be legally enforced if they prevent an individual from reporting a crime. Further, for an NDA to be valid, it will need to ensure that criminal conduct can be disclosed to and discussed with:
- Police
- Other bodies which investigate or prosecute crime
- Qualified and regulated lawyers
- Other support services such as counsellors, advocacy services, or medical professionals, which operate under clear confidentiality principles
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