Search

How can we help?

Icon

Confidentiality Clauses in Settlement Agreements and NDA’s – has anything changed?

It is well known that a select number of individuals and companies used confidential clauses in Non-Disclosure Agreements (NDA’s) and Settlement Agreements to prevent the reporting of misconduct to organisations like the police. This was seen as unjust and society wanted change. However, there has been no change of law yet just numerous consultations and non-binding guidance including by ACAS (New ACAS guidance on the use of NDAs).

The current legal position is that an employer cannot prevent an employee or ex-employee from making a protected disclosure. The government has listened to the consultations and agreed to implement the following changes:-

  • Guaranteeing that nothing will prevent someone from reporting a crime to the police, regulated health and care professionals and legal professionals;
  • Clarifying the confidentiality limits in NDA’s; and
  • Requiring employees to take legal advice on the confidentiality clauses in a settlement agreement.

The government previously said that confidentiality clauses that did not follow with the proposed changes would be void. However , in their latest response to the consultations this precise wording was not used. We will only have clarity once the government publishes the proposed legislation. There is no clear timeline as to when the proposed changes will be implemented. In the interim solicitors drafting confidentiality clauses should be adhering to the SRA Warning Notice (Warning notice- Use of Non Disclosure Agreements)

 

 

The current legal position is that an employer cannot prevent an employee or ex-employee from making a protected disclosure.

Confidentiality clauses are still useful but need to be limited to ensure they do not prevent crimes and/or misconduct being reported.  Redrafting of these clauses will also be required following the decision in Duchy Farm Kennels V Steels (Settlement Agreements and Confidentiality Clauses).

Please contact our employment team us if you require advice on a confidentiality clause contained in an NDA or Settlement Agreement.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

Pub
  • 04 December 2025
  • Immigration

UK Immigration: What to expect in 2026 for employers

Join our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business in 2026.

Pub
  • 04 December 2025
  • Corporate and M&A

Autumn Budget 2025 Breakdown: Key takeaways for business buyers and sellers

Join Stuart Mullins and Nicky Goringe Larkin as they delve into the key updates from the Chancellor’s announcement, with a focus on what matters most for businesses looking to buy and sell.

art
  • 03 December 2025
  • Corporate and M&A

Why is carrying out a legal Due Diligence investigation necessary during an proposed acquisition?

Merging with or acquiring another company is a high-stakes endeavour. The purpose, process and common areas of investigation during a M&A transaction.

art
  • 02 December 2025
  • Employment

All I Want for Christmas… Is No Tribunal Claims!

Before the festivities begin, it is worth unwrapping the key risks and understanding how employers can protect their staff, their reputation and their sanity, while still delivering a thoroughly enjoyable evening.

art
  • 01 December 2025
  • Immigration

Government consultation on extending settlement requirements: What employers and migrants need to know

This article summarises the key proposals , groups who will and will not be affected by the extending settlement requirements, and the potential impact for employers, workers and families.

art
  • 28 November 2025
  • Commercial Real Estate

Auction Sales: Key Things to Consider

Buying or selling a property at auction can offer both buyers and sellers unique advantages, but it also comes with potential risks.