Big Changes Ahead: What Employers Need to Know About NDAs in 2025
by Rebecca Naylor, HR Partner
Big Changes Ahead: What Employers Need to Know About NDAs in 2025
As part of the sweeping reforms set out in the UK Government’s Employment Rights Bill, a new legal framework around Non-Disclosure Agreements (NDAs) is set to come into force from October 2025. These changes aim to tackle the misuse of NDAs in cases of harassment, discrimination, and other forms of misconduct.
If you're an employer, now is the time to review how you use confidentiality clauses in settlement agreements and employment contracts.
What’s Changing?
From October 2025, any NDA or confidentiality clause that attempts to prevent a worker from speaking out about:
- Sexual harassment
- Discrimination
- Bullying or victimisation
- How the employer handled such complaints
...will be legally unenforceable.
Even if a clause exists in a settlement agreement, it won’t hold up in court if it’s used to silence someone inappropriately.
This marks a significant shift in employee protection and workplace transparency, aligning the UK with broader global trends aimed at preventing cover-ups of misconduct.
What’s Still Allowed?
Not all NDAs are being banned. Clauses that are used to protect genuinely confidential business information, such as trade secrets, commercial data, or intellectual property, will still be enforceable.
The changes are about stopping the misuse of NDAs to silence victims or witnesses, not removing the right to protect sensitive business matters.
Why Is This Happening?
These reforms are a direct response to long-standing concerns that NDAs have been misused by some employers to cover up inappropriate behaviour and avoid reputational risk.
Cases in recent years have highlighted how individuals were pressured into signing confidentiality clauses as part of settlement agreements, preventing them from speaking out about their experiences.
By making such clauses unenforceable, the Government aims to promote a culture of openness, accountability, and safety in the workplace.
How Will This Affect Employers?
These changes will affect how you negotiate settlement agreements and handle complaints of misconduct. Employers will need to:
- Review and revise NDA wording in all template agreements and employment contracts.
- Ensure any confidentiality clause is clear, lawful, and limited in scope.
- Be more cautious when relying on informal settlements, particularly where NDAs are used as part of the agreement.
- Update internal procedures for handling grievances and complaints to ensure they are fair, documented, and not reliant on secrecy.
If your current template agreements include broad “gagging” clauses, these will need to be updated ahead of October 2025.
What Should You Do Now?
- Audit your current contracts and settlement templates – Check for overreaching confidentiality clauses.
- Train your HR and legal teams – Make sure they understand the new legal boundaries and how to apply them.
- Improve your internal complaints procedures – A transparent and fair process is more important than ever.
- Speak to your HR or legal adviser – Especially when handling a complaint that could lead to a settlement.
Final Thought
The new rules around NDAs are designed to support a safer and more open working environment. Employers who act now to update their documents and processes will be better protected, more compliant, and more trusted by their teams.
We’re here to help. If you’d like support updating your documents or training your managers, get in touch.
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