NDAs cannot prevent staff going to police
COMPANIES will be banned from using gagging orders to prevent staff from reporting wrongdoing to police, lawyers or doctors, under government proposals.
New legislation announced today aims to tackle the misuse of non-disclosure agreements (NDAs) in the workplace, including those being used to cover up sexual harassment, racial discrimination and assault.
But the changes are expected to be criticised by campaigners who do not feel they go far enough. The women and equalities committee has called for a complete ban on using NDAs to cover up harassment and discrimination.
The Government’s planned changes will prohibit firms from using NDAs to prevent workers from disclosing information to police, health and care professionals and lawyers. They also require employers to make clear – “in plain English” – any limitations. The legislation will ensure that workers will receive independent legal advice.
The current legislation already allows those who sign NDAs to report wrongdoing to police. Employees are also required to get independent legal advice before signing otherwise it is not considered valid, but the new legislation will require lawyers to advise workers on the limitations.
The Telegraph exposed the use of NDAs by Sir Philip Green, the Topshop owner, after staff made allegations of sexual assault and racism against him.
Sir Philip has said he “categorically and wholly” denies the allegations against him.
In an interview with The Sunday Telegraph, Kelly Tolhurst, business minister, conceded that the ability to report wrongdoing to police even after signing an NDA already exists in current legislation, but said that workers were being “misled or … under the impression that they were unable to report to the police” by employers who were encouraging them to sign an NDA.
There is no date yet for when the new legislation will be enacted, and this could be further complicated when a new prime minister takes over, but Ms Tolhurst said there is “no intention to sit on it” and hopes it will be enacted “as soon as possible”.