Louise Haigh, a former cabinet minister, has called for the end of a “two-tier” system when it comes to non-disclosure contracts.
In a Westminster Hall discussion today (2 April), the former transport secretary called on colleagues to ban bosses from using NDAs “improperly” against low-paid employees in sectors like hospitality or retail.
Haigh introduced an Amendment last month to the Employment Rights Bill to end the misuse of NDAs. He called for their ban in cases of abuse, harassment and discrimination, unless the victim expressly requests it.
She cited a recent campaign, Can’t Buy My Silence in the hospitality industry. The campaign found that NDAs are too broad and contain confidentiality clauses. The campaign found that NDAs affected low-income and women workers disproportionately.
Haigh said to MPs that “these clauses are boilerplate.” These clauses are often signed by employees without their knowledge and are sometimes required by employers who have no idea of the implications.
It has become common practice to include broad confidentiality clauses that protect trade secrets and commercial confidentiality in contracts.
The Higher Education Act of 2023 prohibits universities from entering NDAs in response to complaints about sexual misconduct or harassment. Haigh wants the government to adopt policies that are similar to those in the academic sector.
She said: “NDAs can be used as a tool of oppression against workers who have suffered abuse or discrimination in the workplace.
Since the [Employment Rights Bill] discussion last month, I’ve been inundated by details of these cases.
“There was this woman who had been raped at work by a co-worker, but she signed a confidentiality agreement that prevented her from even discussing the matter with medical professionals. This made it impossible for her recovery from the trauma.
A former employee is slandering the employee in front of prospective employers while she can’t tell her side.
Haigh then cited examples of mental health charities and news organizations, as well as trade unions that “exploit this practice”.
She added, “We must accept that this is a serious issue in all types of workplaces in this country. Employers simply cannot be trusted to use this tool.”
She pointed out that several states in the US had passed legislation to prevent the misuse of NDAs, and called the UK an “outlier”, for not taking more strident action against them.
Employers in Ireland are prohibited from using NDAs with current, former or prospective employees when there has been an allegation of sexual harassment, discrimination or harassment.
She said: “Let the Labour Government be the leader in protecting victims and survivors at work and finally put an end to legalised abuse.”
According to a study conducted by the Legal Service Board in the past year, signing an NDA could have “devastating effects” on borrowers and lead to mental health problems.
In recent years there have been many reports of NDA abuse, including that the CBI has used NDAs in order to prevent their staff from discussing sexual harassment and bullying.
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