New legislation will come into force on 1 October 2025 which will impact Non-disclosure Agreements. In this article we consider the changes from an employment perspective and any steps an organisation can take to ensure that it does not contravene these new provisions.
As referenced in our previous briefing, the Victims and Prisoners Act 2024 will void provisions in any agreement which purports to prevent a victim (or someone who reasonably believes they are a victim) from making disclosures about criminal acts to law enforcement agencies, regulators or professional advisors/support services. The relevant provisions will be effective from 1 October 2025.
In anticipation of the new law, the Ministry of Justice has issued guidance on the upcoming changes to Non-Disclosure Agreements (NDAs).
In the employment context, this new law means that confidentiality agreements (‘gagging orders’) – whether as standalone NDAs or clauses as part of a COT3 or a Settlement Agreement - cannot operate to prevent the reporting of criminal activity or to prevent victims obtaining support. The provisions will apply to all sectors.
Taking it back to basics, NDAs are legal contracts which place confidentiality restrictions on information known between the parties in exchange for something of value (which is usually a sum of money). And typically speaking, we often see these types of clauses in the form of confidentiality provisions within a...
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