Heads up, how the proposed NDA reform will change workplace harassment or discrimination claims?

Introduction

If you’ve ever watched a news report about workplace bullying or sexual harassment, you’ve probably heard the term “gagging clause.” That’s the informal name for a non‑disclosure agreement, or NDA – a confidentiality clause that can stop someone from talking about what happened to them.

For years, there have been concerns that some employers misuse NDAs to hide misconduct rather than tackle it. The UK government is now consulting on a major shake‑up. The message is clear: in future, NDAs will no longer be a tool for covering up harassment or discrimination.

Under the new Employment Rights Act 2025, any confidentiality clause that tries to prevent a worker from speaking out about harassment or discrimination will be void – unless strict legal conditions are met. This change is expected to come into force in 2027, and it will significantly limit how and when NDAs can be used in workplace disputes.

This isn’t happening in isolation. Recent laws have already restricted NDAs in higher education (to protect students and staff) and for victims of crime (to ensure they can report offences to the police). The proposed reforms follow the same pattern: more transparency, less secrecy.

In this article, we explain why this consultation matters, what the government is proposing, and how employers can start preparing now. The consultation closes on 8 July 2026 – so there is still time to have your say.

Why the change?

The Government believes there is an imbalance of power in the workplace. Too often, employers have used NDAs to silence victims of harassment or discrimination, creating a culture of secrecy and allowing perpetrators to remain in place.

Under the Employment Rights Act 2025, any confidentiality clause that tries to stop a worker from speaking about harassment or discrimination will be void – unless it meets very specific new criteria.

In short: the days of "sign this to get your payout, but never speak of this again" are numbered.

Key proposals for ‘Excepted Agreements’

The Government acknowledges that some workers want confidentiality for privacy or to move on quickly. Therefore, an NDA can survive (as an "excepted agreement") if it meets strict conditions. The key proposals include:

• Independent Legal Advice (in writing): A worker cannot sign away their rights without first receiving written advice from a qualified adviser (like a solicitor or trade union rep) explaining exactly what the NDA means and its legal limits.

• Worker’s Written Consent: The worker must put in writing that they want the confidentiality, after receiving that advice. The employer cannot just force it upon them.

• A 14-Day Cooling-Off Period: Even after entering into the agreement, the worker will have 14 calendar days to change their mind and withdraw from the NDA without penalty.

• Past Incidents Only: These rules only apply to harassment or discrimination that has already happened. The employers cannot use an NDA to hide future misconduct at the workplace.

What Employers Need to Do Now?

The consultation closes on 8 July 2026. While the law isn't final yet, the direction of travel is clear. Here is your action plan:

• Review your standard templates: Check your employment contracts and settlement agreements. Do they contain blanket confidentiality clauses covering harassment? If so, they will likely be unenforceable in 2027.

• Prepare for a 'Permitted Disclosures' list: Even if a worker signs a valid NDA, they will still be legally allowed to speak to the police, a doctor, a lawyer, a trade union rep, or close family. You cannot contract out of this.

• Plan for the cost of advice: While the Government is not requiring employers to pay for the worker’s independent legal advice, in practice, if you want a binding NDA, you will likely need to fund it to ensure it is valid.

Looking ahead:

The UK Government is also consulting on extending these protections to agency workers, secondees, and even some self-employed freelancers (particularly in sectors like music and creative arts).

The proposed reform, likely landing in 2027, signals a seismic shift. NDAs for workplace harassment will no longer be a tool for secrecy but a tightly regulated option that requires genuine, informed consent from the worker.

If your business currently uses NDAs in settlement agreements, now is the time to audit your practices.

Have questions about the consultation or how to prepare for 2027? Contact our Employment Law team today.

Contact us:

Do you have concerns about a confidentiality agreement you have been asked to sign at work? Are you unsure whether an NDA is stopping you from speaking up about harassment or discrimination? You do not have to navigate this alone.

Our employment team is here to help. Whether you need practical advice on your current situation or want to understand how the incoming 2027 reforms might affect you, we offer clear, confidential, and practical guidance.

Please get in touch with our employment team at enquiry@gulegal.org,  and take the first step towards protecting your rights.

Disclaimer: This article is based on a Government consultation (Make Work Pay: NDAs) which closes on 8 July 2026. The final regulations may differ. This article does not constitute any legal advice.