Government Asked To ‘Reset The Parameters’ Of Controversial Agreements

The House of Commons’ Women and Equalities Committee has today published its report into the use of non-disclosure agreements in discrimination cases.

The Committee, which is appointed by the House of Commons to examine the expenditure, administration and policy of the Government Equalities Office, launched its inquiry last year.

The group of MPs are concerned about the use of non-disclosure agreements relating to sexual harassment in the workplace and believes that in some cases, allegations of unlawful discrimination are not investigated properly – or at all – by employers. 

NDAs are legally drafted contracts under which employers usually agree to pay departing employees rather than face a tribunal claim.

The report makes a series of recommendations which include the Government ensuring that NDAs cannot prevent legitimate discussion of allegations of unlawful discrimination or harassment.

In asking for an urgent and immediate step change in the use of NDAs in discrimination cases, it says the Government should strengthen corporate governance requirements to require employers to meet their responsibilities to protect those they employ from discrimination and harassment.

Named senior managers at board level or similar should in the future oversee anti- discrimination and harassment policies and procedures and the use of NDAs in discrimination and harassment cases.

Maria Miller, the Conservative former culture secretary who chairs the committee, said: “It is particularly worrying that secrecy about allegations of unlawful discrimination is being traded for things that employers should be providing as a matter of course, such as references and remedial action to tackle discrimination.

“After signing an NDA, many individuals find it difficult to work in the same sector again. Some suffer emotional and psychological damage as a result of their experiences, which can affect their ability to work and move on. There is also the financial penalty of losing a job and bringing a case against an employer.

“Organisations have a duty of care to provide a safe place of work for their staff and that includes protection from unlawful discrimination.”

Commenting on the changes, Melanie Stancliffe, an employment partner at Irwin Mitchell, says:

The full report can be downloaded from here - download the report