The government has launched a consultation that could reshape how confidentiality clauses — commonly known as NDAs — operate in the context of settlement agreements.
It’s been welcomed by campaigners and hailed as a “decisive moment” in the fight to end the silencing of victims.
If you have been asked to sign a settlement agreement containing a confidentiality clause, this development is directly relevant to you.
What Is the Consultation About?
On 15 April 2025, the government opened a 12-week consultation on new regulations designed to prevent employers from using NDAs to cover up workplace harassment and discrimination. The consultation closes on 8 July 2025, with any legislative changes expected to come into effect in 2027.
Speaking about the launch of the consultation, the Employment Rights Minister, Kate Dearden said: “We are committed to ending a culture of silence and impunity and stand with all survivors of harassment and abuse in the workplace. These changes will ensure no one has to suffer in silence and give workers confidence that inappropriate behaviour will be dealt with.”
The consultation is being brought forward under the Employment Rights Act 2025, which the government says will benefit more than 18 million workers across the UK.
The key questions being considered include:
- What conditions an NDA must meet in order to remain legally valid
- Who workers should be free to speak to, regardless of what they have signed
- Whether protections should be extended beyond employees to cover agency workers and the self-employed
Importantly, the proposals would also protect witnesses to harassment or discrimination — not just victims — from being pressured into agreements that would prevent them from speaking out or publicly supporting those affected.
The consultation and the opportunity for changes are welcomed by campaigners.
Zelda Perkins, Co-Founder of Can’t Buy My Silence said: “This consultation is a decisive moment in the fight to end the silencing of victims. The government has made a positive commitment to deliver but to make sure this legislation achieves its purpose, those who have suffered must speak up, loudly and clearly. By engaging with this consultation, victims can help ensure the legislation is strong, enforceable, and impossible to sidestep.
This is the chance to create world-leading protections and finally stop the misuse of confidentiality agreements to hide wrongdoing.”
Why Does This Matter for Settlement Agreements?
Confidentiality clauses are a standard feature of most settlement agreements. In many cases, they are entirely legitimate — both sides may have good reasons to keep the terms of an exit private. However, the government’s concern is that some employers have used these clauses to suppress reports of serious misconduct, including sexual harassment.
Research cited in the consultation found that one in four young women would be reluctant to report sexual harassment at work for fear of losing their job. In the year ending March 2023, 18% of those who experienced harassment in person reported it occurring in a workplace setting (Crime Survey for England and Wales).
The proposed reforms are designed to ensure that an NDA can never be used to:
- Stop someone reporting criminal conduct to the police or relevant authorities
- Prevent a worker from disclosing information they are legally entitled to share
- Silence witnesses who wish to support a victim
What Does “Excepted Agreement” Mean in This Context?
An excepted agreement is a settlement agreement that meets the specific legal requirements set out in the Employment Rights Act 1996. One of those requirements is that you must receive independent legal advice before signing — which is precisely why the law insists on this step. The advice you receive should cover not just the financial terms, but also the scope and effect of any confidentiality clause.
If a confidentiality clause in your agreement purports to prevent you from doing something the law says you are entitled to do — such as speaking to a solicitor, making a protected disclosure, or reporting a crime — it is likely already unenforceable. The proposed reforms would codify and extend these protections further.
What Should You Do If You Have Been Asked to Sign a Confidentiality Clause?
If you have been presented with a settlement agreement that includes an NDA or confidentiality clause, it is essential that you take proper independent legal advice before signing. You should not feel pressured to agree to terms that go further than the law allows.
The government’s consultation is open to the public. If you wish to read the full proposals or contribute your views, you can find it at GOV.UK: Make Work Pay — misuse of non-disclosure agreements (NDAs).
Legal Disclaimer
The contents of this article are intended to be for general information purposes only and do not amount to (nor are they intended to be) legal, tax or financial advice or a complete or authoritative statement of the law nor should they be treated as such. No warranty or promise is given, express or implied, as to accuracy of the information on this page and no liability is accepted for any error or omission. You should instruct a specialist employment solicitor to advise you on your particular situation and not act or rely on the information on this page.
