That this House has considered Government policy on the use of non-disclosure agreements in civil harassment, discrimination and abuse cases.
It is a great honour, Mr Betts, to serve under your chairmanship, as you are my good friend and fellow Sheffield Member.
As hon. Members know, last month I tabled an amendment to the Employment Rights Bill that would bring an end to the widespread misuse of non-disclosure agreements, which in recent years have proliferated in every single sector of our economy. It seeks to ban the use of NDAs in cases of harassment, discrimination and abuse, unless at the specific request of the victim. I am incredibly grateful to the Minister for his warm words, his interest in this important topic and his commitment during the debate to look at options to take forward. I would like to use this time to explore what those options might look like and what more the Government need to understand in order to commit to legislate on the matter.
This issue burst into the public consciousness off the back of the #MeToo movement and the brilliant campaign work of Zelda Perkins, who joins us in the Gallery today and who exposed the exploitation and abuse perpetrated by Harvey Weinstein. Other brave women have spoken out in recent months and years, including Rebecca Ferguson and Cher Lloyd—about their experiences on “The X Factor”—and countless more across the entertainment industry, but although these high-profile cases grab media attention and absolutely raise the profile of the issue, they have in a way masked the true, horrifying scale of the issue, which is far from confined to the entertainment industry. In fact, the victims of this issue are far more likely to be low-income workers.
A recent survey of the hospitality sector by the Can’t Buy My Silence campaign found that 100% of NDAs or confidentiality clauses in the hospitality sector were written too broadly.
We have no idea how many people in Bolsover this issue affects, because the very nature of it means that they cannot speak to me about it as their MP. The Can’t Buy My Silence campaign has found that the issue affects five times as many women as men, so does my right hon. Friend agree that addressing it has to be considered as essential to tackling violence against women and girls?
My hon. Friend is absolutely right. The issue overwhelmingly affects women and it overwhelmingly affects low-income workers; it affects all vulnerable people, particularly disabled people and people of colour. She is absolutely right that we have to address it in order to help fulfil our mission to tackle violence against women and girls, but we also need to be careful that we do not narrow our definition only to sexual harassment, as NDAs cover all kinds of abuse in the workplace. Quite simply, we need to remove this tool from employers completely.
It is only those with the means and the confidence to pursue their employers through the courts who can challenge these practices. Low-paid workers in hospitality or retail are being legally silenced after they have suffered serious harm, and they have no access to redress. I want to stress that I do not think 100% of hospitality businesses are bad employers or that the sector is packed full of people who set out to silence victims after they have been abused or discriminated against. The point is that these clauses have become boilerplate. They are signed unwittingly by workers and, in many cases, are required unwittingly by employers with little or no understanding of the consequences. It has become standard practice to include these broadly drafted confidentiality clauses in contracts that go far further than is required to protect commercial confidentiality or trade secrets.
What the right hon. Lady is saying is very important and the overall thrust of her case is absolutely on point. Is it not the case, though, that NDAs are the symptom, and that the underlying disease is the inability of ordinary people to get access to justice through the courts? That is why people enter into non-disclosure agreements: they fear that there is no other way that they will get proper recognition of their case.
The right hon. Member is absolutely right. NDAs are one tool of oppression, essentially, used against workers after they have been abused or discriminated against in the workplace. That failure to access justice through the courts is without doubt a wider disease that needs to be tackled by the Government, but NDAs and their misuse have to be clamped down on because they are having this terrible chilling effect across society and the world of work.
Since the debate last month, I have been inundated with details of such cases. There was the woman who was raped by a colleague at work but had signed a confidentiality clause that explicitly prevented her from discussing the issue even with medical professionals, making it impossible for her to recover from her trauma. An employee who signed an NDA on leaving her workplace has since been effectively blacklisted, because her former employer is undermining her to prospective employers, while she cannot tell her side of the story. A woman I met yesterday told me about the mental health charity she worked for that has discriminated on mental health grounds against at least four people she is personally aware of in the past year; three of them have signed an NDA, but she is bravely pursuing the charity through the courts, because she believes that it is the only way to get justice.
If mental health charities are exploiting this practice to discriminate against people with mental health issues, or, as raised in last month’s debate, progressive news organisations and trade unions are exploiting this practice, we have to accept that it is a serious problem in every type of workplace in this country and that employers simply cannot be trusted with this tool at their disposal.
This practice undeniably has a terrible impact on the individuals affected. It prevents organisations from facing up to the fact, or the scale, of their wrongdoing. It also affects our economy and our productivity, as people are forced out of their workplace—maybe because they are pregnant, have additional needs, or their face simply did not fit—and then they struggle ever to return to work. As the woman I met yesterday who had been a victim of this practice said:
Speeches should be about seven minutes; that is guidance, not an absolute limit. I remind Members not to refer to any cases that are active before the courts, because they are sub judice.
It is a pleasure to serve under your chairmanship, Mr Betts. I thank the right hon. Member for Sheffield Heeley (Louise Haigh) for securing this important debate. As we heard in her eloquent speech, the use of NDAs across all industries is far too prevalent, but I would like to focus my comments on the creative industries.
Back in 2017, the #MeToo movement exposed the pervasive issue of workplace sexual harassment and shone a light on the insidious role of NDAs in silencing victims. Despite the movement’s spotlight, abusive NDAs continue to thrive in the creative industries, serving as tools of coercion rather than legitimate business protections. These agreements do not just limit disclosure; they enable perpetrators, protect abusers and perpetuate cycles of harm.
The creative industries, with their reliance on freelance and temporary employment, irregular working hours and lack of employer accountability, are particularly vulnerable to exploitation. In this environment, NDAs have been weaponised to cover up harassment, discrimination and abuse. They do not exist to protect trade secrets or intellectual property in these cases—they exist to protect the powerful from the consequences of their actions. When 80% of individuals who report misconduct in the music and film industries are silenced by NDAs, the question is not whether these agreements should be regulated but whether they should be allowed at all.
The continued use of abusive NDAs is an outrage. They strip individuals of their right to speak out, forcing them into a cruel dilemma: stay silent or risk financial ruin.
Does the hon. Lady agree that it is an even more significant abuse of NDAs when public money is used by public sector employers such as the BBC, which is paid for by the licence fee, to try to silence those who have a case against them?
I agree; we need to look carefully at this issue, particularly where public money is being used. Across the board, we need to end the practice of abusive NDAs. It is an outrage, and I ask the Government today to act decisively. We have waited too long for a ban on NDAs in cases of abuse, harassment and discrimination. Protecting corporate reputations should not come at the cost of human dignity.
Since its formation, the Creative Industries Independent Standards Authority has been a crucial force in fighting this abuse, working to expose harmful practices and advocate for transparency and accountability. If its efforts to become a prescribed person are successful, it would provide legal safeguards for whistleblowers, helping those bound by NDAs to speak out without fear of retribution. By its very existence, CIISA makes it harder for misconduct to be hidden away, forcing perpetrators and institutions to think twice before engaging in exploitative behaviour.
Unfortunately, despite its vital work, CIISA faces the threat of closure due to financial barriers. Its request for just 0.1% of a company’s profits—a mere fraction of what other regulatory bodies operate on—is being met with obstruction, delays and shifting goalposts. If CIISA is forced to shut down, it will send a clear message: creative industry workers, despite generating £124.6 billion in 2022, do not deserve a safe and respectful workplace.
I have two requests for the Minister. First, will he please act to ensure that CIISA has the funding it needs to continue its work to protect people in the creative industry and prevent the industry from sliding back into silence, fear and impunity? Secondly—we will hear this again and again today—will he please take the action we have been waiting far too long for and ban abusive NDAs outright? No one should ever be forced to choose between their career and their dignity, so it is time to end the use of NDAs as a weapon against justice, and ensure that those who have suffered can speak their truth without fear, without penalty and without being erased.
Members who have heard me speak on these issues before—I do so a lot—know that I am a solicitor specialising in employment law. I am not currently practising, but I spent 13 years doing employment and particularly discrimination law work. A small amount of it was for small employers, but predominantly it was for employees. I have seen a lot of settlement agreements—pretty much every client I ever had ended up with one—and it is extremely unusual for them not to contain some form of NDA. The typical wording states that the person cannot discuss the terms of the agreement, nor the circumstances surrounding the termination of their employment.
There are too many difficulties to unpack in seven minutes, but one is that some of the people who put forward the agreements are not solicitors. A lot of businesses have a human resources adviser who is not regulated by the Solicitors Regulation Authority. Many of them are good people who do a good job of providing affordable advice to businesses; I do not want to universally condemn HR consultants. The reality is that at some point they will have been given a precedent settlement agreement by a solicitor—we might be talking 20 years ago—and those agreements contain NDAs, so they are still in widespread use.
As a solicitor, I would go back and say, “But if my client can’t say anything about the circumstances concerning the termination of their employment, what are they supposed to say to their new employer when they try to get a new job?” Some employers would agree to negotiate some sort of vague wording such as “left by mutual agreement”, so the person could at least say that, but some of them would just say flat out, “There’s money on the table. Your client can take it or leave it.”
But the client faces significant legal bills, and although the employment tribunals were hypothetically designed to enable them to represent themselves, the reality is that if it is a complex discrimination claim and they have a mental health problem—either because their claim related to it in the first place or because they developed one after they were treated so badly in their employment—they may not be able to face the prospect of an unrepresented employment tribunal claim. It is all well and good that the Solicitors Regulation Authority has said that people should not put forward NDA clauses, but they are still in extremely widespread circulation.
My hon. Friend is making a fantastic speech and her experience is spot on. I have seen this culture of fear at the Welsh Rugby Union, where thankfully it no longer exists. Women are so scared to speak out, yet the culture of fear is perpetuated everywhere by the use of NDAs.
That culture is totally everywhere—across sectors. There is no specific sector where if we just sorted it out, the others would be all right. There is also the phenomenon of organisations that say publicly that they do not use NDAs, but I have seen their settlement agreements and can tell Members that they absolutely do. That is not at all unusual.
In summary, we have a systemic problem that is being used to cover up employment rights abuses across the board. We really do need to legislate and have standard wording that people cannot derogate from, whether they are lawyers, HR consultants or business owners. There are lots of good employers out there. I do not want anyone to think that I think all employers are terrible—I really do not: a lot of people are busting a gut to do the right thing by their employees—but we have to stop the use of NDAs.
It is a pleasure to speak in this debate. Mr Betts. I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on setting the scene, and I commend the hon. Member for Congleton (Mrs Russell), who has brought a vast amount of knowledge to the debate. She is not a practising solicitor any more, but all the knowledge she has learned has contributed greatly to the debate, so I thank her for that. That does not take away from anybody else, by the way—I appreciate that others will contribute their expertise.
This is an issue in every avenue of life, from public to private life. In 2022, in his then role as Economy Minister, my colleague at the Northern Ireland Assembly, Gordon Lyons, was one of the first to come out in support of the publicly funded universities that were speaking out against the use of NDAs to silence victims of abuse. Others have outlined how NDAs can be abused, which is the point I wish to focus on.
Gordon Lyons issued a statement at the time, which said that
“sexual harassment and bullying is completely unacceptable and complainants should never be bought or bullied into silence simply to protect the reputation of the institution they study or work at. Non-Disclosure Agreements make it harder for other victims to come forward and help hide perpetrators behind a cloak of anonymity…While there is little evidence of NDAs being used in Northern Ireland higher education settings, I still fully support the Can’t Buy My Silence campaign’s aim of bringing an end to this practice which is why I wrote to the local higher education institutions asking them to sign the pledge…I welcome the collective leadership shown by Northern Ireland’s higher education sector in signing a pledge which demonstrates their clear opposition to the buying of victims’ silence.”
That was in 2022, but how wise those words are today, as was the leadership that Minister Lyons gave at that time in Northern Ireland. Even though we did not have many examples of it, we still need to have the same law in Northern Ireland as here, with the same protection for people. Gordon Lyons’ actions are to be congratulated: they were the first of a number of steps taken in Northern Ireland to send a message that people could no longer hide behind NDAs to protect themselves when they had clearly done wrong.
It is a pleasure to take part in a debate with you in the Chair, Mr Betts. I extend my thanks to my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) for securing this debate on such an important issue, and to my hon. Friend the Member for Congleton (Mrs Russell), who spoke so clearly about the subject.
We cannot talk about the use and abhorrent misuse of non-disclosure agreements without mentioning the crimes of Mohammed al-Fayed. He was a predator who sexually assaulted and harassed hundreds of female employees over decades. I put on the record my thanks to my constituent Keaton Stone, who has been working with a network of Fayed survivors and has become a tireless campaigner for their stories to be heard. He played a part in the making of a BBC documentary exposé last year, which quite frankly horrified the nation with the scale of what had been going on. He has done a lot to make sure we know just how big the scandal was. I note that a new documentary shining a light on one of the many people who enabled al-Fayed will air on Channel 4, possibly this week.
I say that al-Fayed preyed on hundreds of women, but we do not actually know the true figure. We know that 400 women have come forward, but we do not know how many more have been unable to speak out for years—for decades. That is in large part because of al-Fayed’s intimidation tactics, including the coercive use of non-disclosure agreements. Keaton tells me that he still speaks to women who fear going public because of an NDA.
Through non-disclosure agreements, our legal system enabled Mohammed al-Fayed. Lawyers signed those documents week after week, month after month, year after year, and allowed that man to prey on hundreds of women. They were not required by any system to raise the alarm; indeed, they were unable to raise the alarm because of client privilege and confidentiality. That is utterly and unspeakably wrong. Our legal system must begin to protect victims and survivors so that non-disclosure agreements cannot be used to ruin lives in that way again.
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“With all the discussion at the moment around disabled people and returning to work, I just want to cry. My experience is far too common for disabled people because too many employers simply don’t support disabled people at work.”
This is the tool that is then used against them.
If we are to tackle such structural issues, we have to remove the ability to silence people at will, and many other countries and jurisdictions agree. Ireland has recently legislated to ban the use of NDAs in cases of sexual harassment or discrimination. In the US, 27 states have legislated to ban the improper use of NDAs, with no apparent detriment to business or discouragement of settlements. Canada and Australia are following suit. Of course, we also saw some limited progress in this country under the last Government. In May 2024, the Victims and Prisoners Bill was amended to make it clear that any confidentiality agreement is void if it precludes a victim from speaking to legal and therapeutic advice services or family when it is related to criminal conduct. The Higher Education (Freedom of Speech) Bill was also amended to prohibit NDAs being used in cases of sexual harassment, discrimination and bullying.
We now have the absurd situation where students and workers in universities are protected, but a cleaner, who works on a university campus but for an outsourced company, would not enjoy those same protections. We have created a two-tier system of protection, so what is the possible justification for denying workers outside the higher education system that same level of protection?
All of this progress has been predicated on multiple consultations, reviews and evidence bases. In 2019, the Minister’s Department, which was then the Department for Business, Energy and Industrial Strategy, ran an extensive consultation on measures to prevent the misuse of confidentiality clauses in cases of harassment or discrimination. In 2019, the Equality and Human Rights Commission ran a consultation on the use of confidentiality agreements in discrimination cases. The Treasury Committee in 2023 conducted an inquiry into sexism in the City, which recommended further protections for victims of sexual harassment. The Women and Equalities Committee has conducted three inquiries into this issue, under both the last Government and the chairmanship of my hon. Friend the Member for Luton North (Sarah Owen). The most recent one was on misogyny in music, which again explicitly recommended banning the misuse of NDAs. There has been extensive scrutiny in the legal sector, with both the Legal Services Board and the Solicitors Regulation Authority conducting large consultations, resulting in more evidence of the endemic misuse of confidentiality agreements. Both the General Council of the Bar and the Law Society have called on the Government for legislative reform.
My one question to the Minister, who I know agrees that this issue needs to be tackled, is: what else does he or his Department need to be satisfied on the need to legislate? How much longer must low-paid workers be legally required to suffer in complete silence before we can be persuaded to take the necessary legal steps? I know he wants to take action. The strength of support from a number of political parties in the Chamber today demonstrates that the House wants to take action. Twenty-seven US states have passed legislation. The UK Government are starting to look like the outlier. Let’s not let this opportunity pass us by. Let this Labour Government lead the way on protecting victims and survivors in the workplace and finally bring an end to legalised abuse.
The flipside is that in order for someone to be persuaded to sign a settlement agreement, there is a requirement that the employer pays for them to have some legal advice. The standard legal advice offer is somewhere between £250 and £500, and for low-paid people the standard is still £250. The reality of the legal market is that no specialist employment lawyer will explain a potentially 20-page legal document to the person, send them follow-up written advice and renegotiate the terms for £250.
People on low pay can go to a lawyer who for £250 will perhaps take them through the terms of the agreement and explain what they mean, but then they have run out money, so that is the end of it. The terms are not renegotiated and the person just signs what is put in front of them. Senior execs can often afford the advice, which means they get it fully explained and totally renegotiated, so it is compliant at the end. A solicitor like me working against a solicitor on the other side who has put forward something that does not meet the SRA guidelines will say, “We’re not signing that—you know it’s not compliant. You’re in breach of your professional obligations, now get this off the table.” And they do—swiftly.
If a person has £250 and earns £20,000 a year, there is no way that they will pay for that level of top-up legal advice. That is not happening for them at all. Most good solicitors will explain that they cannot do it for the money and tell them how much it will cost to have it done properly. The person will not be able to afford it and, at best, they end up with some really shoddy solicitor who is not necessarily a specialist employment lawyer and is prepared to sign off pretty much anything and, bluntly, leaves them completely stuck. This payment structure is enriching for non-compliant solicitors at best.
There is, in theory, legal aid for people who are on very low wages or in receipt of certain benefits and who have equality claims, but that has been paid at such a low rate for such a long time that there are almost no providers whatsoever. Unless we significantly increase the hourly rate that we pay to providers, they will simply continue to hand back their contracts, which is what has happened in the majority of places. It is extremely difficult to access advice unless someone is a trade union member.
There are still lots of employers who regard all this stuff as just priced in. I have had clients come to me and say, “He’s absolutely notorious—the chief exec is a complete perv.” Everyone in the organisation knows it, but the board does not care. The board can give the women 20 grand to go away, they sign an NDA and that is the end of that. We have watched the chief exec do that time after time—it is just the cost of doing business. He is regarded as the superstar who brings home the bacon, so no one cares. Those are the fundamentals for many UK employers. At UKFast, for example, the chief exec got done for raping his staff. It had been going on for years: he did not just wake up one morning and do that to one woman. He was notorious in Manchester and lots of people knew what was going on. It happens across different organisations; there is no one specific sector.
Initially, NDAs were created with a view to commercial sensitivity, and the reasons behind that could be understood, but they are not used for that any more. They are used for other reasons, which is where the problems are. What has not been right for some time is that staff are pressured into agreeing to blanket NDAs, which are then abused by those in power to cover over bad behaviour or, even worse, wrongdoing and criminality, with the rights of victims taken away. We have seen very public cases of how NDAs covered up the most vile and disgusting acts for decades, and the time has come to put that right. I very much look forward to the Minister’s contribution. He is an honourable person who takes on board our issues and questions, and hopefully comes back with answers.
I believe in the principle of clean hands. A person deserves protection if they have done nothing wrong. When someone with access to a good lawyer can tie a victim in knots, we know there is something wrong with the system. We must change the legislation and offer the protection for victims that is so needed.
There are loopholes for legal professionals to use. I have no issue with legal professionals doing the job they are paid to do. The hon. Member for Congleton is honourable in every sense of the word, and used her position well to help others. However, we know that loopholes are there and must be closed, to protect not the people who are seeking to sell a story to a tabloid but those who have been abused and cannot speak or warn others. They are petrified of the system and the legal complications that surround them. That is not the purpose behind an NDA and the Government must clarify that in legislation.
I ask the Minister to ensure protection for those who have signed NDAs without realising that they went beyond what they thought. Commercial confidentiality is one thing and should be protected, but when it becomes something else—protecting wrongdoing in the business—that has to be taken on. For many victims, the trauma of the reporting process is too much. When they do go through it, the appearance of an NDA they signed, believing it referred to keeping silent about business practices, now means they cannot speak about their abuse. This is simply not right. The right hon. Member for Sheffield Heeley referred to victims; some of those who have spoken to me say they never knew what an NDA meant, and they are petrified by the legal complications and implications.
I support the right hon. Lady in her efforts and hope she is successful. We are all here to support her in the goals she seeks to achieve on behalf of all our constituents. Those who are proven to have committed sexual offences should not find shelter under an NDA. We must revise the legislation accordingly, and I hope the Minister will give us that reassurance. The victim has a right to be heard; we can and must make that easier, in a way that ensures they feel confident and reassured that their concerns and complaints are taken on board.
As my hon. Friend the Member for Congleton said, non-disclosure agreements are often attached to settlement agreements. In my many years working for a trade union, I negotiated a number of settlement agreements, and they invariably included the statement that she mentioned: “You cannot mention this.” I worked with teachers, and it is unusual for them to be able to share some kind of secret that will put their school out of business, but the settlement agreements are boilerplate and it is standard practice for that statement to go in them. Settlement agreements are an important piece of our employment law framework, but we must not have this situation where non-disclosure agreements are attached to them by default, preventing things from being aired. That is particularly true in the case of some of the things we have heard about today, such as sexual harassment—although I agree with my right hon. Friend the Member for Sheffield Heeley that it is about not just sexual harassment, but discrimination and other things.
I was going to touch on the Victims and Prisoners Act, but my right hon. Friend mentioned that, so I will conclude by asking the Minister: when can we expect to go further and faster on this? We must have a legal system that protects low-paid workers, in particular, as well as women and those who are at risk of abuse.