New NDA legislation set to shatter the culture of silence
Read more:
Among the most significant of these changes is an amendment currently progressing through the UK legal system: a reform to the Employment Rights Bill which focuses squarely on the use – and misuse – of non-disclosure agreements (NDAs).
Historically, NDAs served a clear and legitimate purpose. They were designed to protect sensitive business information such as intellectual property, trade secrets, or commercial strategy.
But over time, their use has drifted beyond this original intent, and increasingly, NDAs have been used to draw a line under disputes involving allegations of workplace harassment, bullying, and discrimination.
In some cases, that use risks silencing victims or witnesses of harassment or discrimination, leaving them unable to speak about their experiences, even to friends or family. This is where the changes seek to end their misuse to conceal misconduct or criminal acts.
Read more:
Building on the Worker Protection (Amendment of Equality) Act 2024, which introduced a proactive duty on employers to prevent harassment, the proposed new legislation aims to make void any NDA that seeks to gag individuals from speaking out about inappropriate behaviour. That includes clauses in settlement agreements and employment contracts which have traditionally served to keep such allegations confidential.
The shift is seismic, both legally and culturally. At its core, this legislation reasserts what many have argued all along: that no one should be contractually forbidden from reporting abuse or discrimination. Victims and witnesses must be able to speak openly without fear of retaliation or legal consequence.
The timing of this reform is no coincidence, with the last few years having seen a reckoning across multiple sectors including retail, entertainment, politics and tech, where high-profile figures have faced serious allegations of misconduct. In many cases, NDAs were reported as instrumental in suppressing these claims for years, allowing harmful behaviours to persist unchecked.
With that backdrop, the reform is about more than just legal compliance. It reflects a growing public consensus that transparency and accountability are non-negotiable in modern workplaces, removing a potential route that retains a culture of silence.
Read more:
But as with all sweeping changes, this one is not without its cautions, as some legal experts and advocates for victims have expressed concern that a blanket restriction on NDAs could, unexpectedly, negatively impact those it aims to protect. For some individuals, confidentiality is not a muzzle but a shield, providing the comfort of a private path to closure.
Removing the option entirely may limit choices for victims who don't wish their most vulnerable moments to become public knowledge. As the legislation takes shape, lawmakers and employers will have to strive to strike the right balance: preserving the right to speak out whilst also allowing those who want privacy a means to achieve it.
Employers are currently required not only to respond appropriately to allegations but to demonstrate that they have created a working environment where harassment and discrimination are not just dealt with, but also that they have actively put preventative measures in place. If they fail to do so they will no longer be able to rely on NDAs to avoid adverse publicity and reputational damage. The emphasis here is to shift from reactive crisis management to proactive culture-building.
For organisations, this is a moment of reckoning. Reputational, legal, and ethical stakes are high and, in an age where trust and transparency are paramount, failing to evolve is not an option.
Paul Sheerin is chief executive of Scottish Engineering.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scotsman
8 hours ago
- Scotsman
Help close the pay gap for disabled and ethnic staff
Employers back ethnicity and disability pay gap reporting, but more preparation is needed ahead of the entry into force of mandatory reporting requirements Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Pinsent Masons asked clients for their say on the introduction of reporting requirements to aid our response to the UK government's consultation on the Equality (Race and Disability) Bill, which will introduce mandatory ethnicity and disability pay gap reporting. While many employers across different business sectors voiced strong support for reporting, the findings reveal that meeting the mandatory requirements will take preparation. Our survey showed fewer than half currently calculate disability or ethnicity pay gaps, suggesting that despite positive sentiment, significant groundwork will be required before the new measures can be implemented effectively. Advertisement Hide Ad Advertisement Hide Ad Perhaps to minimise such groundwork, some clients suggested aligning any new frameworks with the existing gender pay gap reporting model and the use of established legal definitions for ethnicity and disability. Experience gained from gender pay gap reporting will be valuable to employers when implementing disability and ethnicity pay gap reporting. The Employment Rights Bill will make gender pay gap actions plans mandatory, says Susannah Donaldson However, ethnicity and disability data also present unique challenges, including sensitivities around self-identification, data protection concerns, and the need for tailored strategies to address disparities. Just over half of the employers surveyed already produce action plans in relation to gender pay gaps, despite there currently being no legal requirement to do so. However, the Employment Rights Bill will make gender pay gap actions plans mandatory. In contrast, very few employers asked, currently produce action plans for ethnicity or disability gaps. Action plans should be purposeful and aim to deliver objective benefits by identifying specific actions required to close pay gaps. Linking reporting with follow-up action is essential to avoid stagnation and ensure year-on-year progress. Advertisement Hide Ad Advertisement Hide Ad One of the most significant barriers identified was the challenge of collecting accurate and comprehensive data. Only 28% of clients we asked reported that at least 80% of their workforce had disclosed disability status, while 43% said the same for ethnicity. Additionally, employees who meet the legal definition of disability under the Equality Act may not identify as disabled, particularly among neurodivergent individuals. Know the backgrounds and needs of staff, but be sensitive with personal information (Picture: Adobe) Another concern raised by employers was the frequency of data updates. If disability status is only recorded at the point of hiring, it may not reflect changes in an employee's health status over time. This could result in underreporting or outdated information being used in pay gap calculations. Collecting data for pay gap reporting involves data management and a cultural exercise. Employers need to build trust and communicate clearly with employees about how their sensitive personal data will be used. Better cultural outcomes, as well as better figures to publicly report, are likely to be achieved if the exercise is based on reliable data. Organisations that already collect ethnicity and disability data will be better positioned to comply with future requirements. Those that do not, should begin assessing how to introduce data collection processes and engage with their workforce to build trust and encourage disclosure. Although the new legal obligations are unlikely to come into force before 2027, employers should be encouraged to start preparations now.
Business News Wales
18 hours ago
- Business News Wales
Time to Prepare for the Employment Rights Bill
At long last, the Employment Rights Bill (ERB) has a clear implementation roadmap. Welsh businesses finally have the clarity they need to plan proactively. With concrete dates to work towards, this isn't just about ticking boxes, it's about preparing tomorrow's workforce today. The question now isn't what's coming — it's what should employers in Wales do next? Understanding the Employment Rights Bill The ERB brings major changes, especially affecting sectors like tourism, retail, care, and hospitality, which rely heavily on flexible working arrangements. Here are the key measures and implementation dates: Immediately following Royal Assent Repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016 New legal protections against dismissal for participating in industrial action April 2026 Doubling the maximum protective award for collective redundancies (currently 90 days' uncapped pay per employee) Introduction of 'Day 1' paternity leave and unpaid parental leave rights Enhanced protections for whistleblowers Establishment of a new Fair Work Agency Improvements to Statutory Sick Pay, including removal of the Lower Earnings Limit and the waiting period Simplified processes for trade union recognition Electronic and workplace balloting October 2026 Ban on controversial 'fire-and-rehire' practices, save for in limited circumstances Launch of a Fair Pay Agreement Negotiating Body for the adult social care sector Strengthened laws on tipping practices Duty to inform workers of their right to join a trade union New employer duty to take 'all reasonable steps' to prevent sexual harassment Extended trade union rights, including new rights and protections for trade union reps 2027 Gender pay gap and menopause action plans (voluntary from April 2026) New rights for pregnant workers New rights for bereavement leave Protections against zero-hours contract abuse, including for agency workers Regulation of umbrella companies Introduction of 'Day 1' unfair dismissal rights 1. Zero-hours contracts Zero-hours contracts will face new restrictions. Qualifying workers will have the right to be offered guaranteed hours, based on average hours worked over a typical 12-week period. Employers will also need to provide reasonable notice of shifts and compensate workers if shifts are cancelled or changed without reasonable notice. Employers should start by: Auditing current zero-hours and agency workers: who are your zero-hours workers? How often are shifts cancelled? Are you at risk of breaching future notice and payment requirements? Mapping out hours worked, reviewing existing terms, and assessing how many staff may soon qualify for new rights Updating employment contracts and policies accordingly – and communicating these changes transparently Preparing to offer more predictable schedules to build trust and long-term loyalty. 2. Unfair dismissal rights The ERB will make unfair dismissal protection a day one right, removing the current two-year service qualifying period. This increases the legal risk of early-stage dismissals, including those during probation. Employers will need to follow fair procedures from the outset, with clear documentation and rationale for any termination. With unfair dismissal set to become a day one right, employers may no longer be able to rely on a probation period or length of service as a buffer against legal claims. Now is the time for employers to: Review and tighten recruitment, induction, and dismissal procedures Train line managers to document performance concerns clearly and follow fair, consistent processes Update disciplinary and probationary policies to ensure procedural fairness from day one. Above all, early dismissals should no longer be seen as informal or low-risk; every decision must be justifiable, evidence-based, and fully compliant with the new provisions. 3. Statutory Sick Pay (SSP) The ERB removes the three-day waiting period for SSP, making it payable from the first day of illness. This will impact payroll and sickness reporting systems. Employers will need to: Update payroll, absence procedures, and internal communications to reflect this change Remove waiting period references from contracts and handbooks Standardise sickness reporting, ensuring clear employee notification and manager recording processes Verify systems can accurately track absences and statutory entitlements. Unpacking the Fair Work Agency (FWA): what will the new state enforcement agency for employment rights mean for HR teams from April 2026? For the first time, a single enforcement body will proactively monitor compliance with key entitlements such as holiday pay, statutory sick pay, minimum wage, and protections for zero-hours workers. The FWA will have the authority to inspect employers, request records, issue penalties, and act independently. For HR teams, this raises the bar on compliance. Accurate record-keeping, consistent processes, and contract clarity will be essential. Holiday pay calculations, especially for variable-hours staff, must be precise. Sickness and absence tracking should be standardised, and payroll systems must be watertight. Sectors such as hospitality, care, and retail – with higher use of casual labour – will be especially exposed to enforcement. With the ERB timeline now clear, there's no time to delay. By preparing now, employers can build stronger workplaces and stand out as responsible, future-ready leaders in the evolving UK economy.
Scotsman
a day ago
- Scotsman
Labour government making things more difficult for all of us
The kind of white-collar jobs on which Edinburgh relies are the ones most vulnerable to the efficiencies AI can bring, says Sue Webber (Picture: Getty Images/iStockphoto) As a city councillor, I got very tired of hearing left wing councillors arguing that Edinburgh was a wealthy city which could tolerate all sorts of charges and taxes to fund their pet projects. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The result was the garden tax, low emission zones, extended residents' parking charges and above-inflation Council Tax rises culminating with this year's 8 per cent rise. Coming next year, hotels and guest houses are expected to collect the tourist tax. Recently we've also heard left wingers argue that all those families whose children attend private schools can easily afford 20 per cent VAT on their fees. Advertisement Hide Ad Advertisement Hide Ad Anyone would think the magic money tree blossoms in Edinburgh, but earlier this week I attended a cross-party briefing organised by Edinburgh Chamber of Commerce which laid bare the concerns that local businesses have for the future. The most obvious is the ongoing impact of Labour's tax on jobs through higher employers' National Insurance contributions, responsible for redundancies in all sectors, and the clear message is it's going to get a lot worse later this year before it gets better. As a result, businesses are being ultra-cautious about recruitment and wage increases, and as usual the first budgets to be slashed are in marketing, which creates a vicious circle of fewer sales which only increases the pressure on employee numbers and salaries. Of course, much of this is a foreign language for too many politicians, and the Edinburgh Tourism Action Group has already flagged up the problems of foisting the tourism tax on businesses without the council carrying out the necessary preparation work businesses will need to make its introduction as smooth as possible. It will not be councillors or council officers with pound signs in their eyes who will bear the brunt of any confusion, but the businesses and their customers, and that could impact on repeat bookings next year. Advertisement Hide Ad Advertisement Hide Ad Then there is the Labour Government's new Employment Rights Bill, with new rights for staff, which is causing widespread confusion and concern and is also likely to be a disincentive for recruitment because it will guarantee full employment rights for new staff from day one, even if they cannot do the job for which they have been hired. And all of this is before factors like global political instability and the technology revolution are considered. There is no more point employers worrying about what Vladimir Putin or President Xi are going to do next than the rest of us, but employers will have no choice but to meet the challenges of artificial intelligence (AI), something creative industries are already having to face, and which the Labour Government seems determined to address by making it easier for American tech giants to plunder material generated by creative industries here. But AI will impact on lawyers and software engineers too and the kind of white-collar jobs on which Edinburgh relies are the ones most vulnerable to the efficiencies AI can bring. There will, of course be opportunities too, but if anyone thinks that whatever prosperity we enjoy in Edinburgh can't disappear because it's a seat of law and government, has a spectacular castle and a big arts festival then they better think again. The old certainties are just that, old, and governments making things more difficult for businesses make things more difficult for us all. Sue Webber is a Scottish Conservative MSP for Lothian
