Source · Select Committees · Treasury Committee

Recommendation 35

35 Accepted in Part Paragraph: 167

Introduce legislation to ban the use of non-disclosure agreements in harassment cases.

Recommendation
We are pleased that the Government is looking at ways to prevent this abusive use of NDAs, and we recommend the introduction of legislation to ban the use of NDAs in harassment cases.
Government Response Summary
The government shares concerns about NDA misuse and is taking steps, including legislation to clarify NDAs cannot prevent reporting a crime or discussing criminal conduct, but it has not committed to a full ban on NDAs in harassment cases.
Paragraph Reference: 167
Government Response Accepted in Part
HM Government Accepted in Part
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.