Lawyers warned by watchdog to ‘get house in order’ over NDAS
LAWYERS have been told to “get their house in order” after it emerged that more than half of the controversial gagging orders being investigated by the regulator were used in-house.
The Solicitors Regulation Authority (SRA) has revealed that it is investigat- ing 12 complaints of the misuse of nondisclosure agreements (NDAS) in discrimination and harassment cases.
Of the original 13 complaints it had received since the end of 2017, seven of the “reports relating to discrimination or harassment involve the settlement of claims made from within a law firm”, the SRA revealed in evidence to MPS.
The disclosure led to calls from Baroness Helena Kennedy QC for the profession to “get their house in order” before attempting to draw up legal contracts to cover up sexual harassment and bullying in other professions.
There is renewed scrutiny on the use of NDAS in the wake of The Daily Telegraph’s investigation into Sir Philip Green which revealed that the Topshop owner paid huge sums, in one case in excess of £1million, to silence allegations of harassment.
The SRA is understood to also be looking into the grievance procedure and subsequent NDAS signed by at least one of Sir Philip’s previous employees who accused the billionaire of sexual harassment.
In evidence to the Women and Equalities Committee, which is holding an inquiry into the use of NDAS in discrimination cases, the regulator revealed they have had “19 reports since late 2017 about the inappropriate use of NDAS. 13 relate to discrimination or harassment and six relate to other commercial or civil matters.”
One relating to discrimination had been dropped as there was no evidence of wrongdoing and 12 “complex and sensitive matters are ongoing”, with two having been referred to the solicitor’s disciplinary tribunal.
Separately, a report by the International Bar Association (IBA), which is due be released later this month has found “quite shocking levels of sexual harassment and bullying”, Baroness Kennedy said.
The leading QC, who is the director of the IBA’S Institute of Human Rights, said: “These are the people drawing up agreements for abusive clients and their own cultures are full of this stuff.”
Baroness Kennedy, who gave evidence to the Women and Equalities Committee’s inquiry earlier this year, said that NDAS should not be used “for covering up misconduct”.