Employment Rights Bill

Report (1st Day) (Continued)

Amendment 46

46: After Clause 22, insert the following new Clause— “Contractual duties of confidentiality relating to harassment and discrimination(1) The Employment Rights Act 1996 is amended as follows.(2) After section 202 insert—“Harassment and discrimination: contractual duties of confidentiality 202A Contractual duties of confidentiality relating to harassment and discrimination(1) Any provision in an agreement between an employer and a worker of the employer (whether a worker’s contract or not) is void in so far as it purports to preclude the worker from making—(a) an allegation of, or a disclosure of information relating to, relevant harassment or discrimination, or(b) an allegation, or a disclosure of information, relating to the response of an employer of the worker to—(i) relevant harassment or discrimination, or(ii) the making of an allegation or disclosure within paragraph (a).(2) Harassment or discrimination is “relevant” for the purposes of subsection (1) if—(a) the harassment or discrimination consists of, or is alleged to consist of, conduct engaged in by—(i) an employer of the worker, or(ii) another worker of such an employer, or(b) the person who is, or is alleged to be, the victim of the harassment or discrimination is—(i) the worker, or(ii) another worker of an employer of the worker.(3) Subsection (1) does not apply to provision in an agreement (an “excepted agreement”) that satisfies such conditions as the Secretary of State may specify by regulations.(4) But the Secretary of State may by regulations provide that any provision in an excepted agreement is void in so far as it purports to preclude the worker from making an allegation or disclosure within subsection (1)(a) or (b)—(a) to a specified description of person;(b) for a specified purpose;(c) in specified circumstances.(5) The Secretary of State may by regulations—(a) provide for this section to have effect as if references to a worker included a specified description of individual who is not a worker as defined by section 230(3) but who—(i) works or worked, or is or was provided with work experience or training, in specified circumstances, or(ii) has entered into, or works or worked under, a relevant contract of a specified description;(b) make provision as to who is to be regarded as an employer of such an individual for the purposes of this section.(6) In subsection (5), “relevant contract” means any contract, other than a contract of employment, whether express or implied and (if express) whether oral or in writing, by which an individual undertakes to do or perform (whether personally or otherwise) any work or services for another party to the contract whose status is by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual.(7) Regulations under this section may—(a) make different provision for different purposes;(b) make consequential provision. (8) For the purposes of this section, the holding, otherwise than under a contract of employment, of the office of constable or an appointment as a police cadet is to be treated as employment by the relevant officer under a contract of employment.“The relevant officer” has the meaning given by section 43KA(2).(9) Nothing in this section affects the operation of any other enactment or rule of law by virtue of which provision in an agreement may be void.(10) In this section—“discrimination” means discrimination within section 13, or any of sections 15 to 19A, of the Equality Act 2010;“harassment” means harassment of the kind described in subsection (1), (2) or (3) of section 26 of that Act;“specified” means specified in the regulations.”(3) In section 192(2) (provisions of Act which have effect in relation to armed forces)—(a) omit the “and” at the end of paragraph (e);(b) for paragraph (f) substitute—“(f) this Part, apart from section 202A, and(g) Parts 14 and 15.”(4) In section 193 (provisions of Act which do not apply in relation to the security services), for “section 47B” substitute “sections 47B and 202A”.(5) In section 194(2) (provisions of Act which have effect in relation to House of Lords staff)—(a) omit the “and” at the end of paragraph (g);(b) for paragraph (h) substitute—“(h) this Part, apart from section 202A, and(i) Parts 14 and 15.”(6) In section 195(2) (provisions of Act which have effect in relation to House of Commons staff)—(a) omit the “and” at the end of paragraph (g);(b) for paragraph (h) substitute—“(h) this Part, apart from section 202A, and(i) Parts 14 and 15.”(7) In section 236(3) (regulations subject to affirmative procedure), after “125(7)” insert “, 202A”.”Member's explanatory statement This new clause provides that provision in an agreement between an employer and a worker is void in so far as it purports to prevent the worker making an allegation or disclosure of information relating to certain work-related harassment and discrimination.

My Lords, this amendment is on the important issue of non-disclosure agreements. NDAs have their legitimate purposes, but they should never be used to take unfair advantage of workers and to cover up workplace misconduct. Evidence has emerged in recent years that some employers have been doing just that.

I praise the work of campaigners who have brought this evidence to light—notably Can’t Buy My Silence, spearheaded by Zelda Perkins, who has been an impassioned campaigner for change for many years and is one of many brave victims who have spoken up. This evidence shows that some employers exploit the inherent imbalance of power they have with their workers and get NDAs signed, fostering a culture of silence and impunity.

I acknowledge the strength of feeling expressed across the House in Committee and thank noble Lords —as well as those in the other place—for raising the evidence for change in Parliament and for their powerful interventions on this issue. I thank in particular the noble Baronesses, Lady O’Grady, Lady Chakrabarti, Lady Kennedy, Lady Morrissey, Lady Goudie, Lady Harman and Lady Kramer.

The Government have listened to those calls for action and tabled Amendment 46. This amendment will void any provision in an agreement, such as a contract of employment or settlement agreement, between a worker and their employer in so far as it prevents a worker speaking out about relevant harassment or discrimination.

Let me be clear that this amendment will not impact on the legitimate use of NDAs—for example, to protect commercially sensitive information, ideas or intellectual property in business transactions. Relevant harassment or discrimination is defined in line with the existing definitions in the Equality Act 2010 and is conduct which the worker or a co-worker has suffered or is alleged to have suffered, or conduct carried out or alleged to be carried out by the employer or a co-worker—for example, where a colleague tells another colleague that their boss has sexually harassed them. This will mean that workers who have experienced harassment or discrimination can speak up, as well as those who have witnessed misconduct or who have knowledge of it.

The amendment will render void NDAs which prevent workers speaking out about their employer’s response to the relevant harassment or discrimination or an allegation relating to it—for example, where an employer fails to investigate an allegation or where a worker has received poor performance reviews or has had to suffer poor conduct as a result of them speaking out about being harassed.

We understand that there may be cases where workers want confidentiality. We are therefore taking a power to define in regulations when the NDA will not be void. These regulations will set conditions aimed at protecting workers, ensuring they have a greater say in whether they want an NDA and an understanding of what they are agreeing to. This will help address the imbalance of power between workers and employers. In addition, in instances where a worker enters into an NDA meeting these conditions, the Government intend to specify in regulations who workers can still speak to about their experience. This may include, for example, a doctor or a lawyer.

Finally, the amendment includes a power that will allow us to extend this new legislation to other individuals, such as certain self-employed persons. These matters would be subject to consultation first, to ensure we get things right and listen to employers and workers. This amendment draws on legislation that commenced in Ireland last year, but goes further in certain important respects—for example, by extending rights to workers who experience relevant harassment and discrimination, not just at the hands of their employer but from third parties such as clients and customers of an employer. It is, if you like, Ireland-plus.

This world-leading amendment will give millions of workers confidence that inappropriate behaviour in the workplace will be dealt with and not hidden. We are proud to be a Government who are ending the appalling practice of NDAs being misused to silence victims of harassment or discrimination.

Once more, I thank Members of this House and those in the other place for their work advocating for reform in this area, including by tabling amendments to this Bill. I also thank Zelda Perkins—who I think was in the Gallery earlier this evening—for her tireless campaigning for reform. I was delighted to meet her earlier today to be able to discuss this important amendment. The Government look forward to working with her closely as we develop the regulations and, in turn, implement this important reform. This is a huge milestone. I beg to move.

My Lords, I will speak to all three amendments in this group, the second two of which are in my name.

I begin by thanking the Government for listening to and acting on the concerns of victims of harassment and discrimination, who have risked so much by speaking out for justice despite being bound by non-disclosure agreements. The Government’s Amendment 46 brings in radical change, as the Minister has described. I join the Minister in particularly mentioning Zelda Perkins of Can’t Buy My Silence; behind her have been other civic society groups, which have been unfailing and determined, and have refused to be discouraged.

I congratulate MPs who spoke out in the Commons. In this House, I was very glad that the Minister mentioned the names of the many noble Baronesses across the Benches who have been involved. I know that the noble Baronesses, Lady Kennedy, Lady Morrissey and Lady Chakrabarti cannot be here today. We had all expected the amendments to come up on Wednesday, so with this sudden change of plan, they are here in spirit and will continue to watch over this legislation.

I also think she was right to take note of the engagement by the noble Baroness, Lady O’Grady, because her years leading the trade union movement gave the Government the confidence they needed to take action. For that, we always remain respectful and grateful.

The Government will face a complex task in fashioning the regulations which must underpin this clause. Some NDAs, for example, are designed to protect children who are third parties in an event from disclosure of very personal details. This is complex and not easy issue. Those of us on these Benches will be watching very closely as the regulations are developed.

However, there is a key weakness in the proposed clause, which I am aware the Government cannot tackle in this Bill because of its scope. The clause and its protections apply only to workers and, indeed, to a narrow definition of workers which sits within the pre-existing legislation on disclosure. So, for example, a would-be actress interviewed by Harvey Weinstein would not be covered because she is not within the definition of worker. Now, an employee of Weinstein’s company could safely speak out on her behalf with this new legislation—that is the Zelda Perkins example—if they had witnessed harassment, so it is a real improvement.

My Lords, it is real pleasure to follow my noble friend Lady Kramer and to add my strong support to my noble friend the Minister and the Government’s Amendment 46 on non-disclosure agreements. This will make the UK a world leader in legislation to end the silence around workplace harassment and discrimination.

Neary 10 years ago, the TUC conducted the biggest survey of its kind in Europe, which found that half of all women had experienced sexual harassment at work, and that figure rose to two-thirds of young women. Women on insecure contracts, including agency and zero-hours contracts, were the most vulnerable of all. Too often, women subjected to harassment felt they had no choice but to leave their jobs, risking their careers and livelihoods. Meanwhile, too often, the perpetrator remained in post, free to harass others.

I will always remember one young woman who quit her job after increasingly disturbing comments made by her boss. At her leaving party, he told her that his only regret was that he had not had the chance to get her in the store cupboard and rape her. This is why many of us believe so strongly that harassment is not a joke or a bit of banter, and is not to be trivialised. Whether it is racism, sexism or any other form of prejudice and discrimination, it is an abuse of power that has real-life consequences for those who suffer it. Settlement agreements with non-disclosure clauses compound the lack of power that many of those subjected to harassment feel.

This amendment is about protecting the free speech of victims and witnesses to harassment. This new right will not stop the use of settlement agreements, but it will stop them being used to gag victims. It puts the victims of and witnesses to abuse in the driving seat. They can decide whether they want to talk about the experience and who they want to talk to. That should give every perpetrator pause for thought.

I will speak very briefly on the three amendments. I am very grateful to the noble Baroness, Lady O’Grady, for namechecking me among the illustrious supporters.

First, on government Amendment 46, I have been going on about NDAs and whistleblowers for a long time over the years and it is great to finally get to a day where we have legislation that is actually gripping it. I agree with the reservations of the noble Baroness, Lady Kramer, about it applying to workers only—but, my goodness, this is a substantial beachhead into a problem that is long overdue for settlement.

I support Amendment 96. The unfair dismissal aspect is so obvious that I do not think it needs any words from me. In particular, I am interested in supporting the duty to investigate side of it. I often say that Parliament loves to make laws and then never resources the enforcement of them. Organisations love to make policies about whistleblowing—to coin a phrase, “big, beautiful policies” about whistleblowing. The trouble is that, when it comes to somebody actually trying to whistleblow in practice, the reception is very often the three Ds: delay, dismiss and deny.

This amendment gives the opportunity to remove something that is not only unfair to the individual employee but is corrosive of business efficiency and a betrayal of investors’ interests in whatever the business or organisation is. I remind the House that whistleblowing is not just about sexual harassment, vitally important though that aspect is. It can be about criminality of a whole range of kinds which, if not revealed, is very corrosive to business and damaging to investors, who take a keener interest than some people realise in whistleblowers. To bring a duty to investigate will be a great step towards resisting the temptation and ability to cover up issues brought up by whistleblowers.

Finally, on Amendment 95, the noble Baroness, Lady Kramer, has very long championed the office of the whistleblower. For all the reasons we have discussed tonight, it is of benefit to whistleblowers and organisations to have this office put in place. There is such a lot of work to do in terms of their knowledge and support, with so much need out there. I do not think I need say any more; I am just very happy to once more support the enthusiasm of the noble Baroness, Lady Kramer, for the office of the whistleblower.

I very much thank the Minister and her officers for all the time they have given us over the last year in being able to get this clause on the statutes tonight. I also thank my colleagues in the other place, in particular Lou Haigh and the Deputy Prime Minister, Angela Rayner, for the work they have done and encouragement they have given us in this House to continue with the campaign.

I also thank the Diversity Project and Zelda Perkins’s group for their work with us over a longer time than we have today. Non-disclosure agreements need to be properly regulated and not permitted to continue in the way they have been, with their chilling effects.

This is especially so when the disclosure ban applies to the context of an employee and an employer and relates to harassment, bullying or discrimination, including impartiality and sexual harassment, which is one of the worst things that can happen to anybody and ruins their life completely. I am really grateful to everybody who has been kind enough to work with me over these months and years.

My Lords, I speak on behalf of my noble friend Lady Kennedy, who, due to recent surgery, cannot be here this evening, but also on behalf of other women around the House, all of whom have pressed for amendments on the issue of NDAs being used to silence women who experience sexual harassment in the workplace.

I know that my noble friend Lady Kennedy worked closely with the courageous Zelda Perkins on her campaign to change the law. We all want to pay tribute to our noble friend the Minister for the vital role that she has played in bringing the Government on board to change the law with the amendments—our warm congratulations to the Minister.

I congratulate the Government on this excellent amendment, and I join the thanks to Zelda Perkins and her colleagues for their tireless efforts to bring it to this point. I have a few questions for the Minister about the Government’s intentions, or present thoughts, regarding the secondary legislation. In particular, is it right that employers will not be permitted to suggest confidentiality? Will there be mandatory independent legal advice? Will confidentiality be time limited, or at least have an opt-out? Will the excepted individuals to whom the victim can speak include someone the victim knows, a friend or a relative, not just independent professionals? Will non-disparagement clauses also be caught by this amendment?