27 May 2026
Once seen as a routine clause in employment contracts and settlement agreements, workplace NDAs are now under increasing legal and public scrutiny particularly where concerns about harassment, discrimination, and whistleblowing are involved.
For both employers and employees, understanding what an NDA can legally cover and where the limits now lie is becoming increasingly important.
What is a Workplace NDA?
A workplace NDA is a confidentiality agreement designed to prevent certain information being shared.
They commonly appear:
Typically, NDAs are used to protect:
They may also include non-disparagement clauses and set out who an employee is still permitted to speak to, such as lawyers, regulators, or immediate family members.
Why Are NDAs Used?
NDAs are not unlawful in themselves.
In many situations, they serve a legitimate commercial purpose by:
For employees, confidentiality can also offer privacy around the circumstances of their departure.
What an NDA Cannot Do
Despite the term “gagging clause” often being used, there have always been legal limits on what NDAs can prevent.
An NDA cannot:
Any clause attempting to do so is likely to be unenforceable.
Recent Changes to the Law
The law surrounding workplace NDAs has changed significantly in recent years, with further reforms expected.
Victims and Prisoners Act 2024
Since October 2025, NDAs can no longer prevent victims or suspected victims of crime from speaking to:
This applies to agreements signed on or after 1 October 2025.
Sexual Harassment and Whistleblowing
From April 2026, sexual harassment has been formally added to whistleblowing protections.
This means workers raising concerns about sexual harassment are protected from:
An NDA cannot remove these protections.
New NDA Restrictions Expected in 2027
Further reforms are expected to come into force in 2027 under the Employment Rights Act 2025.
The proposed changes would prevent employers from using NDAs to stop workers speaking about:
The reforms are expected to significantly narrow the scope of confidentiality clauses in workplace settlements.
What This Means for Employers
For employers, now is a good time to review:
Older NDA wording may no longer reflect current legal requirements or upcoming reforms.
Employers should also be aware that relying too heavily on confidentiality clauses in workplace disputes may carry increasing legal and reputational risk.
What Employees Should Know
If you are being asked to sign an NDA or settlement agreement, it is important to understand:
Employees signing settlement agreements must receive independent legal advice before the agreement becomes legally binding.
The legal landscape around workplace NDAs is changing rapidly.
While confidentiality agreements still play an important role in employment relationships and settlements, there are now far clearer limits on what they can lawfully prevent.
For both employers and employees, understanding those boundaries and ensuring agreements are properly drafted is essential.
How We Can Help
Whether you are being asked to sign an NDA, negotiating a settlement agreement, or reviewing workplace documentation as an employer, taking legal advice early can help protect your position.
Our employment law team supports employers and employees across Dorset, including Bournemouth, Poole, Christchurch and Highcliffe, with practical advice on workplace disputes, settlement agreements and employment law issues.
Call us on 01202 294411 or get in touch through our website to arrange a confidential consultation: Contact Us AB Solicitors For Your Legal Needs
