Is your company making you sign over the top NDA’s?
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New legislation in the UK will tackle the misuse of Non-Disclosure Agreements (NDAs), also known as confidentiality clauses, in the workplace – including those being used to cover up sexual harassment, racial discrimination and assault.
“We will not tolerate the use of NDAs to silence and intimidate victims to prevent them speaking out”, said Business Minister Kelly Tolhurst
NDAs can be used by businesses for a number of legitimate reasons but in a minority of cases they are being abused and those that sign them not made aware of their rights.
Business Minister Kelly Tolhurst on Sunday 21 July 2019 announced plans for new legislation which will, for the first time, prohibit NDAs being used to prevent individuals from disclosing information to the police, regulated health and care professionals, or legal professionals, such as a doctor, lawyer, or social worker.
The updated legislation will also:
Ensure employers make clear the limitations of a confidentiality clause, in plain English, within a settlement agreement and in a written statement for an employee, so individuals signing them fully understand what they are signing and their rights
Extend current legislation so that individuals signing NDAs will get independent legal advice on the limitations of a confidentiality clause – including making clear that information can still be disclosed to police, regulated health and care professionals, or legal professionals regardless of an NDA
Introduce new enforcement measures to deal with confidentiality clauses that do not comply with legal requirements – for example, an NDA in a settlement agreement that does not follow new legislative requirements will be legally void
Business Minister Kelly Tolhurst said:
The vast majority of businesses comply with the law and use NDAs legitimately – from protecting commercially sensitive information to preventing information being shared with competitors.
As we have seen in the news recently, there are a handful of employers using NDAs to cover-up criminal acts in the workplace, including sexual harassment, assault and racist discrimination.
We will not tolerate the use of NDAs to silence and intimidate victims from speaking out. The new legislation will stamp out misuse, tackle unacceptable workplace cultures, protect individuals and create a level playing field for businesses that comply with the law.
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Blog by Mike Coady, Coady Performance Group
Mike Coady is an award-winning financial expert and a well-known leader in the financial industry.
Having taken two of his previous firms to Chartered Status in the UK and also achieved the prestigious National IFA of the Year Award – Highly Commended.
Mike is qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), and a Fellow of the Institute of Directors (FIoD).
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