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Ex-Minister Urges a Ban on Inappropriate NDA Utilization in Low-Wage Employment: An Employment Law Perspective

A former cabinet minister, Louise Haigh, has advocated for banning bosses from using non-disclosure agreements (NDAs) improperly, especially for low-paid workers in sectors like service, retail, or hospitality. Haigh, who served as transport secretary, is calling for an end to the two-tier system for victims of abuse or harassment, proposing that all workers, regardless of their employment status, should have the right to address their grievances without fear of legal repercussions.

Haigh is set to address her colleagues in a Westminster Hall debate on Wednesday, emphasizing that the misuse of NDAs in workplaces is a widespread issue that needs to be tackled. She points out that many in insecure employment may not have the resources or confidence to seek legal recourse against their employers, implying that NDAs are used to silence them effectively.

In support of her stance, Haigh cited a Labour amendment to the employment rights bill, proposed last month, aimed at putting an end to the misuse of NDAs. She also revealed under parliamentary privilege instances where ITN had used NDAs to cover up workplace harassment.

Haigh is pushing for the government to align its policy on NDAs with existing protections afforded to those in higher education, as specified in the Higher Education Act 2023. This Act prohibits universities from entering into NDAs concerning complaints of sexual misconduct or harassment with staff, students, or visiting speakers.

During her speech, Haigh intends to share concerning stories from low-paid workers affected by the improper use of NDAs. Among these include a woman who was prevented from discussing her trauma after being raped by a colleague, another who was blacklisted by a former employer after signing an NDA, and a worker who is taking her mental health charity to court for alleged disability-based discriminations despite signing an NDA.

The Can’t Buy My Silence campaign’s findings show that 100% of NDAs or confidentiality clauses are written too broadly, potentially silencing workers without them realizing the implications. Haigh argues that these broad clauses extend far beyond what is necessary to protect trade secrets or commercial confidentiality.

Haigh is urging the Labour government to seize this opportunity to lead by example in protecting victims and survivors in the workplace, advocating for the elimination of “legalized abuse” through harmful NDAs. Zelda Perkins, co-founder of Can’t Buy My Silence, supports this call, emphasizing that all workers deserve protection from being silenced in their workplace and urging the government to act on abusive NDAs to uphold worker rights.

Source: https://www.theguardian.com/law/2025/apr/02/ban-bosses-from-improper-use-of-ndas-for-low-paid-workers-says-ex-minister-louise-haigh

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