Copyright Moore Barlow LLP (Moore Blatch and Barlow Robbins merged May 2020)

Crackdown on ‘gagging clauses’

New laws banning the use of non-disclosure agreements (NDAs) in cases relating to sexual harassment, racial discrimination and assault are set to be introduced by the Government. NDAs related to these cases will be legally void.

that the Government accepts that “many businesses use non-disclosure agreements and other confidentiality agreements for legitimate business reasons, such as to protect confidential information”. However, Business Minister Kelly Tonhurst said that the government will not tolerate the use of NDAs to “silence victims to stop them speaking out.”

The new legislation will also ensure individuals are entitled to receive independent legal advice about the limitations of a contract.