An amendment to the Employment Rights Bill will ban companies from using the agreements in a bid to protect workers and stop victims from suffering in silence.
Changes set to be introduced to the bill, which is due to return to the Lords next week, will void NDAs used by employers against employees who have been subjected to harassment, including sexual harassment or discrimination in the workplace.
The move will also mean that witnesses to this kind of behaviour can call it out and publicly support victims without the threat of being sued.
Angela Rayner, deputy Prime Minister said: “We have heard the calls from victims of harassment and discrimination to end the misuse of NDAs. It is time we stamped this practice out – and this government is taking action to make that happen.
“The Employment Rights Bill will ban any NDA used for this purpose, so that no one is forced to suffer in silence.”
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What is an NDA?
NDA is a catch-all term to describe any agreement containing confidentiality or non-disparagement clauses or used to describe those clauses themselves. These contracts or clauses restrict what a signatory can say, or who they can tell, about something.
Their original purpose was to protect intellectual property or other commercial or sensitive information. However, reports have shown they have become commonly used to prevent people speaking out about horrific experiences in the workplace.
There have been several high-profile cases of NDAs being used to prevent victims from speaking about crimes.
If passed, these rules will mean that any confidentiality clauses in settlement agreements will be null and void.
Zelda Perkins, founder of the campaign group Can’t Buy My Silence UK, said: “This is a huge milestone, for years, we’ve heard empty promises from governments whilst victims have continued to be silenced, to see this Government accept the need for nationwide legal change shows that they have listened and understood the abuse of power taking place.
“Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.
“This is not over yet and we will continue to focus closely on this to ensure the regulations are watertight and no one can be forced into silence again. If what is promised at this stage becomes reality, then the UK will be leading the world in protecting not only workers but the integrity of the law.”
The Employment Rights Bill will also boost sick pay for millions of workers.
