NDA law condemns Green employees to silence
Bill’s amendments to safeguard workers will not apply to gagging orders retrospectively
EMPLOYEES who accused Sir Philip Green of inappropriate behaviour would not be able to breach their gagging orders to report him to the police under new laws announced by the Government.
On Tuesday, Alex Chalk, the Justice Secretary, tabled amendments to his victims and prisoners’ Bill, which mean those accused of sexual and other offences will no longer be able to use non-disclosure agreements (NDAS) to silence their victims.
However, the law will only apply to new NDAS signed between employers and their staff and will not be applied retrospectively to those that were drawn up before the Bill gains royal assent this summer.
The Telegraph revealed five years ago how five people who alleged Sir Philip was guilty of inappropriate behaviour that was at times racial, physical or sexual, each signed an NDA in return for pay-offs.
He paid a female executive more than £1 million after she accused him of groping her as part of a series of allegations that The Telegraph was only able to disclose following a six-month legal battle.
Sir Philip is also alleged to have racially abused a senior black employee, telling him that his “problem” was that he was still “throwing spears in the jungle”.
The staff member received about £1million, while two other female employees were paid hundreds of thousands of pounds each after complaining of Sir Philip’s “inappropriate” behaviour that included “grabbing” one woman by the face and putting another in a “headlock”.
Sir Philip’s lawyers have consistently denied that his conduct towards employees amounted to any type of crime “or anything that would amount to gross misconduct, or a serious risk to health and safety”.
They told The Telegraph that he was a “passionate businessman, who could at times be over-exuberant and hotheaded”. They said he could be “perceived at times as aggressive with senior and trusted staff ”.
No criminal investigation has been mounted in the UK over the allegations while, in the US, charges of misdemeanour assault – comprising four counts alleging he touched a pilates instructor inappropriately – were dismissed.
Under the law, NDAS will no longer be legally enforceable if they prevent employees from reporting a crime.
It means victims will be free to speak about their experiences to police, lawyers, doctors and counsellors without fear of legal action for breaking the terms of the agreement.
It is understood ministers decided against making the legislation retrospective because of concerns that it could change or invalidate multiple contractual arrangements that had already been agreed.
However, the Liberal Democrats, who have been campaigning for all NDAS to be abolished, urged the Government to go further. They cite the disparity between universities – where NDAS covering misconduct, including sexual assault, harassment, and bullying are to be banned and other sectors where they are not.
Layla Moran, the party’s foreign affairs spokesman, said: “This amendment is a welcome move that will help victims to access the support they need. But the Government is not going far enough in giving victims their voice back.
“It won’t stop organisations from using gagging clauses and won’t do anything to help those already under an NDA. We need a complete ban of NDAS in cases of sexual misconduct, harassment and bullying to ensure that no victim is silenced.”
A Ministry of Justice spokesman said: “Non-disclosure agreements should never be used to sweep criminality under the carpet and prevent victims from accessing the legal advice or support they deserve. Our changes will protect anyone who believes they are the victim of a crime.”