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.

About this article

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.

About this article

Read, listen and watch our latest insights

Pub
  • 24 March 2025
  • Employment

Talking Employment Law: The Employment Rights Bill – Part 1

In part 1 of the Employment Rights Bill podcast in the ‘Talking Employment Law’ series, Louise Keenan and Lucy White, members of the employment team, will discuss some of the main provisions of the Bill, including unfair dismissal and family rights.

art
  • 21 March 2025
  • Employment

Increase to Tribunal Award Limits Effective from 6 April 2025

As of 6 April 2025, the Employment Rights (Increase of Limits) Order 2025 will increase the compensation limits which apply to various Employment Tribunal awards as well as other statutory payments.

art
  • 18 March 2025
  • Immigration

Key New Changes to the Immigration Rules: The Impact of the Statement of Changes HC733

The Home Secretary has introduced a Statement of Changes in Immigration Rules, bringing significant amendments affecting multiple routes. Below, we summarise the key changes and their implications.

art
  • 17 March 2025
  • Corporate and M&A

Deal Announcement: Clarkslegal’s corporate lawyers advise on the sale of Cryostore Limited to hVIVO plc

Clarkslegal’s corporate team is pleased to have advised Malcolm Wilkingson and the exiting shareholders on their multi-million pound sale of family-owned business, Cryostore Limited, to listed company hVIVO plc.

art
  • 10 March 2025
  • Corporate and M&A

Are You Sale Ready?

If you’re at the stage of considering the ‘What Next?’ for your business then it is probably time to consider whether your business is ready to go through a partial or complete sale process.

art
  • 10 March 2025
  • Commercial Real Estate

Etapes clés dans une transaction immobilière anglaise

On nous demande souvent quelles sont les étapes clés dans l’achat d’un local commercial ; voici le parcours typique d’un acheteur ou preneur.