Source · Select Committees · Treasury Committee

Recommendation 34

34 Accepted Paragraph: 166

Widespread misuse of non-disclosure agreements silences harassment victims and protects perpetrators.

Conclusion
The widespread misuse of non-disclosure agreements (NDAs) in sexual harassment cases is shocking. NDAs have the effect of silencing the victim of harassment when they are forced out of an organisation, while protecting the perpetrator and leaving them free to continue their career.
Government Response Summary
The government shares concerns about NDA misuse and is taking action, including the Higher Education (Freedom of Speech) Act 2023 which prevents NDAs in certain misconduct cases, and has committed to legislation clarifying NDAs cannot prevent reporting a crime.
Paragraph Reference: 166
Government Response Accepted
HM Government Accepted
The Government shares concerns that NDAs are being used to intimidate victims of discrimination and harassment into silence and is already taking action. As the Committee recognises, the Government has taken significant steps to prevent the use of NDAs in certain circumstances including in higher education, where students are in a particularly vulnerable position. The Higher Education (Freedom of Speech) Act 2023 will prevent HE providers using NDAs with staff, students, and visiting speakers in cases of sexual abuse, harassment or misconduct, and other forms of bullying or harassment. This is expected to take effect in August 2024. The Government has also committed to bringing forward legislation to clarify that NDAs cannot be legally enforced if they prevent victims from reporting a crime and to ensure information related to criminal conduct can be discussed with the following groups without fear of legal action: • Police or 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.