Government publishes its response to NDA consultation

The Government’s response to the consultation on the misuse of confidentiality clauses (also known as “non-disclosure agreements” or “NDAs”) was published yesterday morning. The purpose of the consultation (available here) was to explore how NDAs and their legal framework operate in practice, and to assess what changes are required to ensure that individuals are appropriately protected from their misuse.

Farore Law was present at the roundtable discussion with the Government Department for Business, Enterprise and Industrial Strategy (“BEIS”) to provide its input on the legal issues.

In response, the Government intends to take a number of actions, including:

• legislating so that NDAs cannot prevent disclosures to the police, regulated health and care professionals and legal professionals;

• legislating so that limitations in NDAs are clearly set out in employment contracts and settlement agreements;

• producing guidance for solicitors and legal professionals responsible for drafting settlement agreements;

• legislating to enhance the independent legal advice received by individuals signing NDAs; and

• employing enforcement measures for NDAs that do not comply with legal requirements in written statements of employment particulars and settlement agreements.

The full response is available to view here.