A major reset is underway in how confidentiality and non-disclosure agreements (NDAs) can be used in UK workplaces. From universities to boardrooms, the law is shifting decisively toward transparency around harassment and discrimination — and employers need to start adapting now.
Checklist
Map where NDAs are used (employment contracts, settlement agreements, standalone confidentiality clauses) and flag any that could restrict disclosures about discrimination, harassment or the employer’s handling of complaints.
Update policies, training and investigations to meet the new “reasonable steps” duty to prevent sexual harassment and prepare for future third-party liability.
Refresh settlement templates with compliant carve-outs and plan for “excepted agreements” once regulations are published.
Keep records of harassment risk assessments, decisions on actions taken (or not taken), and supplier or client controls for third-party risks.
Track key dates: Higher Education sector NDA ban (1 Aug 2025), Victims and Prisoners Act limits (1 Oct 2025), Employment Rights Bill harassment reforms (expected 2026–27).
What’s changing
From 1 October 2025, the Victims and Prisoners Act 2024 will make NDA clauses unenforceable if they prevent someone who believes they are a victim of crime from disclosing information to police, lawyers, victim support services or close family. Although the Act mainly protects victims of criminal conduct, it signals the government’s direction of travel toward greater openness around misconduct.
In the higher education sector, from 1 August 2025 universities and colleges in England will be banned from using NDAs to silence students, staff or visiting speakers about sexual misconduct, harassment or bullying. While limited to education for now, similar principles are expected to shape broader employer practice.
The Employment Rights Bill (ERB) will go further, making void any term that prevents a worker from making an allegation or disclosure about “relevant harassment or discrimination” — or about how the employer responded to it. The clause will apply to contracts and settlement agreements alike, with regulations to define any “excepted agreements” (such as worker-requested confidentiality with safeguards).
Only the gagging element will be void, meaning NDAs can still protect legitimate business information, but not silence allegations of unlawful treatment. Employers will need to narrow non-disparagement and confidentiality provisions to trade secrets, client data and commercial information only.
The wider context
These NDA reforms align with a new legal duty on employers to prevent sexual harassment, in force since October 2024. The Equality and Human Rights Commission (EHRC) can already enforce this duty, and tribunals can uplift compensation by up to 25 percent for failures. The government plans to strengthen this to an “all reasonable steps” duty under the ERB and extend liability to third-party harassment (for example, by clients or customers) from 2026.
Employers should now evidence how they meet these duties through up-to-date risk assessments, regular and meaningful training, leadership messaging, and well-documented investigations. Supplier and customer contracts should also include clear anti-harassment and escalation clauses.
Preparing now
Before the 2025 deadlines, HR and legal teams should audit all confidentiality clauses, remove any language that could restrict disclosures about misconduct, and update settlement agreement templates to include legally required carve-outs. Maintaining a central NDA register, policy version control, and comprehensive training records will be key to demonstrating compliance.
The message is clear: confidentiality can no longer come at the cost of accountability. Employers who act early will not only reduce legal risk — they’ll signal a culture that supports those who speak up.
This article was created with insights from Lex HR - your always-on HR legal assistant. Lex HR helps HR professionals navigate complex employment law with confidence, providing real-time, reliable advice tailored to your needs. Try it free today and see how much easier compliance can be.
