Non-disclosure Agreements

Wednesday 2nd April 2025 Westminster Hall

09:30

[Louise Haigh (Sheffield Heeley) (Lab)]

I beg to move,

That this House has considered Government policy on the use of non-disclosure agreements in civil harassment, discrimination and abuse cases.

It is a great honour, Mr Betts, to serve under your chairmanship, as you are my good friend and fellow Sheffield Member.

As hon. Members know, last month I tabled an amendment to the Employment Rights Bill that would bring an end to the widespread misuse of non-disclosure agreements, which in recent years have proliferated in every single sector of our economy. It seeks to ban the use of NDAs in cases of harassment, discrimination and abuse, unless at the specific request of the victim. I am incredibly grateful to the Minister for his warm words, his interest in this important topic and his commitment during the debate to look at options to take forward. I would like to use this time to explore what those options might look like and what more the Government need to understand in order to commit to legislate on the matter.

This issue burst into the public consciousness off the back of the #MeToo movement and the brilliant campaign work of Zelda Perkins, who joins us in the Gallery today and who exposed the exploitation and abuse perpetrated by Harvey Weinstein. Other brave women have spoken out in recent months and years, including Rebecca Ferguson and Cher Lloyd—about their experiences on “The X Factor”—and countless more across the entertainment industry, but although these high-profile cases grab media attention and absolutely raise the profile of the issue, they have in a way masked the true, horrifying scale of the issue, which is far from confined to the entertainment industry. In fact, the victims of this issue are far more likely to be low-income workers.

A recent survey of the hospitality sector by the Can’t Buy My Silence campaign found that 100% of NDAs or confidentiality clauses in the hospitality sector were written too broadly.

[Natalie Fleet (Bolsover) (Lab)]

We have no idea how many people in Bolsover this issue affects, because the very nature of it means that they cannot speak to me about it as their MP. The Can’t Buy My Silence campaign has found that the issue affects five times as many women as men, so does my right hon. Friend agree that addressing it has to be considered as essential to tackling violence against women and girls?

[Louise Haigh]

My hon. Friend is absolutely right. The issue overwhelmingly affects women and it overwhelmingly affects low-income workers; it affects all vulnerable people, particularly disabled people and people of colour. She is absolutely right that we have to address it in order to help fulfil our mission to tackle violence against women and girls, but we also need to be careful that we do not narrow our definition only to sexual harassment, as NDAs cover all kinds of abuse in the workplace. Quite simply, we need to remove this tool from employers completely.

It is only those with the means and the confidence to pursue their employers through the courts who can challenge these practices. Low-paid workers in hospitality or retail are being legally silenced after they have suffered serious harm, and they have no access to redress. I want to stress that I do not think 100% of hospitality businesses are bad employers or that the sector is packed full of people who set out to silence victims after they have been abused or discriminated against. The point is that these clauses have become boilerplate. They are signed unwittingly by workers and, in many cases, are required unwittingly by employers with little or no understanding of the consequences. It has become standard practice to include these broadly drafted confidentiality clauses in contracts that go far further than is required to protect commercial confidentiality or trade secrets.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

What the right hon. Lady is saying is very important and the overall thrust of her case is absolutely on point. Is it not the case, though, that NDAs are the symptom, and that the underlying disease is the inability of ordinary people to get access to justice through the courts? That is why people enter into non-disclosure agreements: they fear that there is no other way that they will get proper recognition of their case.

[Louise Haigh]

The right hon. Member is absolutely right. NDAs are one tool of oppression, essentially, used against workers after they have been abused or discriminated against in the workplace. That failure to access justice through the courts is without doubt a wider disease that needs to be tackled by the Government, but NDAs and their misuse have to be clamped down on because they are having this terrible chilling effect across society and the world of work.

Since the debate last month, I have been inundated with details of such cases. There was the woman who was raped by a colleague at work but had signed a confidentiality clause that explicitly prevented her from discussing the issue even with medical professionals, making it impossible for her to recover from her trauma. An employee who signed an NDA on leaving her workplace has since been effectively blacklisted, because her former employer is undermining her to prospective employers, while she cannot tell her side of the story. A woman I met yesterday told me about the mental health charity she worked for that has discriminated on mental health grounds against at least four people she is personally aware of in the past year; three of them have signed an NDA, but she is bravely pursuing the charity through the courts, because she believes that it is the only way to get justice.

If mental health charities are exploiting this practice to discriminate against people with mental health issues, or, as raised in last month’s debate, progressive news organisations and trade unions are exploiting this practice, we have to accept that it is a serious problem in every type of workplace in this country and that employers simply cannot be trusted with this tool at their disposal.

This practice undeniably has a terrible impact on the individuals affected. It prevents organisations from facing up to the fact, or the scale, of their wrongdoing. It also affects our economy and our productivity, as people are forced out of their workplace—maybe because they are pregnant, have additional needs, or their face simply did not fit—and then they struggle ever to return to work. As the woman I met yesterday who had been a victim of this practice said:

“With all the discussion at the moment around disabled people and returning to work, I just want to cry. My experience is far too common for disabled people because too many employers simply don’t support disabled people at work.”

This is the tool that is then used against them.

If we are to tackle such structural issues, we have to remove the ability to silence people at will, and many other countries and jurisdictions agree. Ireland has recently legislated to ban the use of NDAs in cases of sexual harassment or discrimination. In the US, 27 states have legislated to ban the improper use of NDAs, with no apparent detriment to business or discouragement of settlements. Canada and Australia are following suit. Of course, we also saw some limited progress in this country under the last Government. In May 2024, the Victims and Prisoners Bill was amended to make it clear that any confidentiality agreement is void if it precludes a victim from speaking to legal and therapeutic advice services or family when it is related to criminal conduct. The Higher Education (Freedom of Speech) Bill was also amended to prohibit NDAs being used in cases of sexual harassment, discrimination and bullying.

We now have the absurd situation where students and workers in universities are protected, but a cleaner, who works on a university campus but for an outsourced company, would not enjoy those same protections. We have created a two-tier system of protection, so what is the possible justification for denying workers outside the higher education system that same level of protection?

All of this progress has been predicated on multiple consultations, reviews and evidence bases. In 2019, the Minister’s Department, which was then the Department for Business, Energy and Industrial Strategy, ran an extensive consultation on measures to prevent the misuse of confidentiality clauses in cases of harassment or discrimination. In 2019, the Equality and Human Rights Commission ran a consultation on the use of confidentiality agreements in discrimination cases. The Treasury Committee in 2023 conducted an inquiry into sexism in the City, which recommended further protections for victims of sexual harassment. The Women and Equalities Committee has conducted three inquiries into this issue, under both the last Government and the chairmanship of my hon. Friend the Member for Luton North (Sarah Owen). The most recent one was on misogyny in music, which again explicitly recommended banning the misuse of NDAs. There has been extensive scrutiny in the legal sector, with both the Legal Services Board and the Solicitors Regulation Authority conducting large consultations, resulting in more evidence of the endemic misuse of confidentiality agreements. Both the General Council of the Bar and the Law Society have called on the Government for legislative reform.

My one question to the Minister, who I know agrees that this issue needs to be tackled, is: what else does he or his Department need to be satisfied on the need to legislate? How much longer must low-paid workers be legally required to suffer in complete silence before we can be persuaded to take the necessary legal steps? I know he wants to take action. The strength of support from a number of political parties in the Chamber today demonstrates that the House wants to take action. Twenty-seven US states have passed legislation. The UK Government are starting to look like the outlier. Let’s not let this opportunity pass us by. Let this Labour Government lead the way on protecting victims and survivors in the workplace and finally bring an end to legalised abuse.

[Several hon. Members rose—]

[Mr Clive Betts (in the Chair)]

Speeches should be about seven minutes; that is guidance, not an absolute limit. I remind Members not to refer to any cases that are active before the courts, because they are sub judice.

14:55

[Zöe Franklin (Guildford) (LD)]

It is a pleasure to serve under your chairmanship, Mr Betts. I thank the right hon. Member for Sheffield Heeley (Louise Haigh) for securing this important debate. As we heard in her eloquent speech, the use of NDAs across all industries is far too prevalent, but I would like to focus my comments on the creative industries.

Back in 2017, the #MeToo movement exposed the pervasive issue of workplace sexual harassment and shone a light on the insidious role of NDAs in silencing victims. Despite the movement’s spotlight, abusive NDAs continue to thrive in the creative industries, serving as tools of coercion rather than legitimate business protections. These agreements do not just limit disclosure; they enable perpetrators, protect abusers and perpetuate cycles of harm.

The creative industries, with their reliance on freelance and temporary employment, irregular working hours and lack of employer accountability, are particularly vulnerable to exploitation. In this environment, NDAs have been weaponised to cover up harassment, discrimination and abuse. They do not exist to protect trade secrets or intellectual property in these cases—they exist to protect the powerful from the consequences of their actions. When 80% of individuals who report misconduct in the music and film industries are silenced by NDAs, the question is not whether these agreements should be regulated but whether they should be allowed at all.

The continued use of abusive NDAs is an outrage. They strip individuals of their right to speak out, forcing them into a cruel dilemma: stay silent or risk financial ruin.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the hon. Lady agree that it is an even more significant abuse of NDAs when public money is used by public sector employers such as the BBC, which is paid for by the licence fee, to try to silence those who have a case against them?

[Zöe Franklin]

I agree; we need to look carefully at this issue, particularly where public money is being used. Across the board, we need to end the practice of abusive NDAs. It is an outrage, and I ask the Government today to act decisively. We have waited too long for a ban on NDAs in cases of abuse, harassment and discrimination. Protecting corporate reputations should not come at the cost of human dignity.

Since its formation, the Creative Industries Independent Standards Authority has been a crucial force in fighting this abuse, working to expose harmful practices and advocate for transparency and accountability. If its efforts to become a prescribed person are successful, it would provide legal safeguards for whistleblowers, helping those bound by NDAs to speak out without fear of retribution. By its very existence, CIISA makes it harder for misconduct to be hidden away, forcing perpetrators and institutions to think twice before engaging in exploitative behaviour.

Unfortunately, despite its vital work, CIISA faces the threat of closure due to financial barriers. Its request for just 0.1% of a company’s profits—a mere fraction of what other regulatory bodies operate on—is being met with obstruction, delays and shifting goalposts. If CIISA is forced to shut down, it will send a clear message: creative industry workers, despite generating £124.6 billion in 2022, do not deserve a safe and respectful workplace.

I have two requests for the Minister. First, will he please act to ensure that CIISA has the funding it needs to continue its work to protect people in the creative industry and prevent the industry from sliding back into silence, fear and impunity? Secondly—we will hear this again and again today—will he please take the action we have been waiting far too long for and ban abusive NDAs outright? No one should ever be forced to choose between their career and their dignity, so it is time to end the use of NDAs as a weapon against justice, and ensure that those who have suffered can speak their truth without fear, without penalty and without being erased.

09:45

[Mrs Sarah Russell (Congleton) (Lab)]

Members who have heard me speak on these issues before—I do so a lot—know that I am a solicitor specialising in employment law. I am not currently practising, but I spent 13 years doing employment and particularly discrimination law work. A small amount of it was for small employers, but predominantly it was for employees. I have seen a lot of settlement agreements—pretty much every client I ever had ended up with one—and it is extremely unusual for them not to contain some form of NDA. The typical wording states that the person cannot discuss the terms of the agreement, nor the circumstances surrounding the termination of their employment.

There are too many difficulties to unpack in seven minutes, but one is that some of the people who put forward the agreements are not solicitors. A lot of businesses have a human resources adviser who is not regulated by the Solicitors Regulation Authority. Many of them are good people who do a good job of providing affordable advice to businesses; I do not want to universally condemn HR consultants. The reality is that at some point they will have been given a precedent settlement agreement by a solicitor—we might be talking 20 years ago—and those agreements contain NDAs, so they are still in widespread use.

As a solicitor, I would go back and say, “But if my client can’t say anything about the circumstances concerning the termination of their employment, what are they supposed to say to their new employer when they try to get a new job?” Some employers would agree to negotiate some sort of vague wording such as “left by mutual agreement”, so the person could at least say that, but some of them would just say flat out, “There’s money on the table. Your client can take it or leave it.”

But the client faces significant legal bills, and although the employment tribunals were hypothetically designed to enable them to represent themselves, the reality is that if it is a complex discrimination claim and they have a mental health problem—either because their claim related to it in the first place or because they developed one after they were treated so badly in their employment—they may not be able to face the prospect of an unrepresented employment tribunal claim. It is all well and good that the Solicitors Regulation Authority has said that people should not put forward NDA clauses, but they are still in extremely widespread circulation.

The flipside is that in order for someone to be persuaded to sign a settlement agreement, there is a requirement that the employer pays for them to have some legal advice. The standard legal advice offer is somewhere between £250 and £500, and for low-paid people the standard is still £250. The reality of the legal market is that no specialist employment lawyer will explain a potentially 20-page legal document to the person, send them follow-up written advice and renegotiate the terms for £250.

People on low pay can go to a lawyer who for £250 will perhaps take them through the terms of the agreement and explain what they mean, but then they have run out money, so that is the end of it. The terms are not renegotiated and the person just signs what is put in front of them. Senior execs can often afford the advice, which means they get it fully explained and totally renegotiated, so it is compliant at the end. A solicitor like me working against a solicitor on the other side who has put forward something that does not meet the SRA guidelines will say, “We’re not signing that—you know it’s not compliant. You’re in breach of your professional obligations, now get this off the table.” And they do—swiftly.

If a person has £250 and earns £20,000 a year, there is no way that they will pay for that level of top-up legal advice. That is not happening for them at all. Most good solicitors will explain that they cannot do it for the money and tell them how much it will cost to have it done properly. The person will not be able to afford it and, at best, they end up with some really shoddy solicitor who is not necessarily a specialist employment lawyer and is prepared to sign off pretty much anything and, bluntly, leaves them completely stuck. This payment structure is enriching for non-compliant solicitors at best.

There is, in theory, legal aid for people who are on very low wages or in receipt of certain benefits and who have equality claims, but that has been paid at such a low rate for such a long time that there are almost no providers whatsoever. Unless we significantly increase the hourly rate that we pay to providers, they will simply continue to hand back their contracts, which is what has happened in the majority of places. It is extremely difficult to access advice unless someone is a trade union member.

There are still lots of employers who regard all this stuff as just priced in. I have had clients come to me and say, “He’s absolutely notorious—the chief exec is a complete perv.” Everyone in the organisation knows it, but the board does not care. The board can give the women 20 grand to go away, they sign an NDA and that is the end of that. We have watched the chief exec do that time after time—it is just the cost of doing business. He is regarded as the superstar who brings home the bacon, so no one cares. Those are the fundamentals for many UK employers. At UKFast, for example, the chief exec got done for raping his staff. It had been going on for years: he did not just wake up one morning and do that to one woman. He was notorious in Manchester and lots of people knew what was going on. It happens across different organisations; there is no one specific sector.

[Tonia Antoniazzi (Gower) (Lab)]

My hon. Friend is making a fantastic speech and her experience is spot on. I have seen this culture of fear at the Welsh Rugby Union, where thankfully it no longer exists. Women are so scared to speak out, yet the culture of fear is perpetuated everywhere by the use of NDAs.

[Mrs Russell]

That culture is totally everywhere—across sectors. There is no specific sector where if we just sorted it out, the others would be all right. There is also the phenomenon of organisations that say publicly that they do not use NDAs, but I have seen their settlement agreements and can tell Members that they absolutely do. That is not at all unusual.

In summary, we have a systemic problem that is being used to cover up employment rights abuses across the board. We really do need to legislate and have standard wording that people cannot derogate from, whether they are lawyers, HR consultants or business owners. There are lots of good employers out there. I do not want anyone to think that I think all employers are terrible—I really do not: a lot of people are busting a gut to do the right thing by their employees—but we have to stop the use of NDAs.

09:52

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate. Mr Betts. I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on setting the scene, and I commend the hon. Member for Congleton (Mrs Russell), who has brought a vast amount of knowledge to the debate. She is not a practising solicitor any more, but all the knowledge she has learned has contributed greatly to the debate, so I thank her for that. That does not take away from anybody else, by the way—I appreciate that others will contribute their expertise.

This is an issue in every avenue of life, from public to private life. In 2022, in his then role as Economy Minister, my colleague at the Northern Ireland Assembly, Gordon Lyons, was one of the first to come out in support of the publicly funded universities that were speaking out against the use of NDAs to silence victims of abuse. Others have outlined how NDAs can be abused, which is the point I wish to focus on.

Gordon Lyons issued a statement at the time, which said that

“sexual harassment and bullying is completely unacceptable and complainants should never be bought or bullied into silence simply to protect the reputation of the institution they study or work at. Non-Disclosure Agreements make it harder for other victims to come forward and help hide perpetrators behind a cloak of anonymity…While there is little evidence of NDAs being used in Northern Ireland higher education settings, I still fully support the Can’t Buy My Silence campaign’s aim of bringing an end to this practice which is why I wrote to the local higher education institutions asking them to sign the pledge…I welcome the collective leadership shown by Northern Ireland’s higher education sector in signing a pledge which demonstrates their clear opposition to the buying of victims’ silence.”

That was in 2022, but how wise those words are today, as was the leadership that Minister Lyons gave at that time in Northern Ireland. Even though we did not have many examples of it, we still need to have the same law in Northern Ireland as here, with the same protection for people. Gordon Lyons’ actions are to be congratulated: they were the first of a number of steps taken in Northern Ireland to send a message that people could no longer hide behind NDAs to protect themselves when they had clearly done wrong.

Initially, NDAs were created with a view to commercial sensitivity, and the reasons behind that could be understood, but they are not used for that any more. They are used for other reasons, which is where the problems are. What has not been right for some time is that staff are pressured into agreeing to blanket NDAs, which are then abused by those in power to cover over bad behaviour or, even worse, wrongdoing and criminality, with the rights of victims taken away. We have seen very public cases of how NDAs covered up the most vile and disgusting acts for decades, and the time has come to put that right. I very much look forward to the Minister’s contribution. He is an honourable person who takes on board our issues and questions, and hopefully comes back with answers.

I believe in the principle of clean hands. A person deserves protection if they have done nothing wrong. When someone with access to a good lawyer can tie a victim in knots, we know there is something wrong with the system. We must change the legislation and offer the protection for victims that is so needed.

There are loopholes for legal professionals to use. I have no issue with legal professionals doing the job they are paid to do. The hon. Member for Congleton is honourable in every sense of the word, and used her position well to help others. However, we know that loopholes are there and must be closed, to protect not the people who are seeking to sell a story to a tabloid but those who have been abused and cannot speak or warn others. They are petrified of the system and the legal complications that surround them. That is not the purpose behind an NDA and the Government must clarify that in legislation.

I ask the Minister to ensure protection for those who have signed NDAs without realising that they went beyond what they thought. Commercial confidentiality is one thing and should be protected, but when it becomes something else—protecting wrongdoing in the business—that has to be taken on. For many victims, the trauma of the reporting process is too much. When they do go through it, the appearance of an NDA they signed, believing it referred to keeping silent about business practices, now means they cannot speak about their abuse. This is simply not right. The right hon. Member for Sheffield Heeley referred to victims; some of those who have spoken to me say they never knew what an NDA meant, and they are petrified by the legal complications and implications.

I support the right hon. Lady in her efforts and hope she is successful. We are all here to support her in the goals she seeks to achieve on behalf of all our constituents. Those who are proven to have committed sexual offences should not find shelter under an NDA. We must revise the legislation accordingly, and I hope the Minister will give us that reassurance. The victim has a right to be heard; we can and must make that easier, in a way that ensures they feel confident and reassured that their concerns and complaints are taken on board.

09:58

[Dave Robertson (Lichfield) (Lab)]

It is a pleasure to take part in a debate with you in the Chair, Mr Betts. I extend my thanks to my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) for securing this debate on such an important issue, and to my hon. Friend the Member for Congleton (Mrs Russell), who spoke so clearly about the subject.

We cannot talk about the use and abhorrent misuse of non-disclosure agreements without mentioning the crimes of Mohammed al-Fayed. He was a predator who sexually assaulted and harassed hundreds of female employees over decades. I put on the record my thanks to my constituent Keaton Stone, who has been working with a network of Fayed survivors and has become a tireless campaigner for their stories to be heard. He played a part in the making of a BBC documentary exposé last year, which quite frankly horrified the nation with the scale of what had been going on. He has done a lot to make sure we know just how big the scandal was. I note that a new documentary shining a light on one of the many people who enabled al-Fayed will air on Channel 4, possibly this week.

I say that al-Fayed preyed on hundreds of women, but we do not actually know the true figure. We know that 400 women have come forward, but we do not know how many more have been unable to speak out for years—for decades. That is in large part because of al-Fayed’s intimidation tactics, including the coercive use of non-disclosure agreements. Keaton tells me that he still speaks to women who fear going public because of an NDA.

Through non-disclosure agreements, our legal system enabled Mohammed al-Fayed. Lawyers signed those documents week after week, month after month, year after year, and allowed that man to prey on hundreds of women. They were not required by any system to raise the alarm; indeed, they were unable to raise the alarm because of client privilege and confidentiality. That is utterly and unspeakably wrong. Our legal system must begin to protect victims and survivors so that non-disclosure agreements cannot be used to ruin lives in that way again.

As my hon. Friend the Member for Congleton said, non-disclosure agreements are often attached to settlement agreements. In my many years working for a trade union, I negotiated a number of settlement agreements, and they invariably included the statement that she mentioned: “You cannot mention this.” I worked with teachers, and it is unusual for them to be able to share some kind of secret that will put their school out of business, but the settlement agreements are boilerplate and it is standard practice for that statement to go in them. Settlement agreements are an important piece of our employment law framework, but we must not have this situation where non-disclosure agreements are attached to them by default, preventing things from being aired. That is particularly true in the case of some of the things we have heard about today, such as sexual harassment—although I agree with my right hon. Friend the Member for Sheffield Heeley that it is about not just sexual harassment, but discrimination and other things.

I was going to touch on the Victims and Prisoners Act, but my right hon. Friend mentioned that, so I will conclude by asking the Minister: when can we expect to go further and faster on this? We must have a legal system that protects low-paid workers, in particular, as well as women and those who are at risk of abuse.

10:02

[Martin Wrigley (Newton Abbot) (LD)]

It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on securing this important debate.

We have heard from Members how widespread this issue is: we heard about the hospitality industry and the creative industries, we just heard about teachers, and the hon. Member for Congleton (Mrs Russell) told us that it occurs in every HR department. I am horrified that it also happens in the NHS. I was approached by a constituent whose employment as an NHS nurse was terminated, but I do not know many of the details, because she cannot speak to me about it. Her employment was terminated due to—how can I put it best?—a medical condition that she suffered and is now over, but she cannot talk about it, and it has given her issues ever since. I do not know how many people in my constituency fall into that category, because, as the right hon. Member for Sheffield Heeley said, they cannot talk to us about it.

[Mrs Russell]

Typically, the agreement’s wording will contain an exemption for whistleblowing—the Solicitors Regulation Authority says it must—so the chances are that the hon. Gentleman’s constituent can actually talk to him about the details, and he can refer to it under parliamentary privilege. However, most people do not fully understand the relationship between the whistleblowing exemptions—they are extremely limited and tightly drafted and say that someone can only speak to very limited people in very limited circumstances to whistleblow in line with the law—and the broader statement that I referred to: “You cannot discuss the circumstances surrounding your employment.” Unless someone has had good legal advice that makes that really clear, and they can retain that quite sophisticated combination, they do not understand. The exemptions that we have just do not work.

[Martin Wrigley]

I fully agree. Absolutely—people do not know what they can do.

Will the Minister investigate how widespread the use of NDAs is in the NHS? Given that it is probably in the Government’s power to ban it in the NHS without primary legislation, will he take steps immediately to have it stopped and seek what recompense is required for those who have suffered it?

I agree absolutely that this practice must be stopped entirely. It is just one of many poor practices that are carried out by some businesses—not all, but some—often unwittingly. That is why I introduced my Company Directors (Duties) Bill, which will have its Second Reading debate on 4 July. Right now, the company directors’ duties say that they must put shareholder interests first and might have regard to other things. My Bill—I hope the Minister will consider working with me on making it happen—would change company law so that directors have a duty to balance the interests of shareholders, employees and the environment. I seek the support of Members present to make the Bill law; I hope that we can have further discussions to see what we can do to get it into the Government’s schedule. Until we put that balance at the foundation of the company directors’ duties, it will be impossible to get rid of circumstances, such as those the hon. Member for Congleton described, where company directors behave badly.

I fully support the right hon. Member for Sheffield Heeley on all the issues that she identified and will happily engage and do whatever I can to advance work on them.

[Mr Clive Betts (in the Chair)]

The Front-Bench speeches will need to start by 10.28 am. I call the Chair of the Women and Equalities Committee.

10:07

[Sarah Owen (Luton North) (Lab)]

I certainly will not take that long—that would not make me very popular at all.

It is a pleasure to see you in the Chair today, Mr Betts, and to follow such informative and heartfelt speeches. I wish that there were more people here, because I have learned something new from every single speaker—those who spoke because this issue matters to them and those, such as my hon. Friend the Member for Congleton (Mrs Russell), who have huge experience in this area. It is well worth sharing the information that we have heard with colleagues, so that it does not stay within these four walls.

There will probably be some bad-faith actors out there who will want to read what we say as a desire to ban NDAs altogether and not protect commercially sensitive information. That is absolutely not what my right hon. Friend the Member for Sheffield Heeley (Louise Haigh), or any of the other campaigners who have worked hard on this issue, have laid out. Our intention is purely to stop the abuse, discrimination, bullying and sexual harassment that we have heard about. I praise my right hon. Friend for seeking to include a measure on this subject in the Employment Rights Bill, and the Minister for saying that they will work on an issue on which we have not seen progress, despite the existence of quite a lot of cross-party consensus.

We have heard about the high-profile cases, and we know that women are five times more likely to have signed an NDA than men, but the problem is not just the scale; it is that victims of discrimination or sexual harassment are asked to sign NDAs at their most vulnerable moment. Pregnant Then Screwed estimated that around 435,000 pregnant women and mothers in the UK have signed NDAs, and 80% of those felt they had to either leave their job or cut their hours as a result of the NDA. Those are shocking statistics. Surely, that goes against the Government’s aim to ensure that people get work, get the jobs they want, and stay in work and progress. This is not just about injustice; it is also about the growth agenda.

We do not know the true scale of the issue. I am grateful that Can’t Buy My Silence, Pregnant Then Screwed and other organisations are working on estimates, but we should not be working on estimates; we should know the full scale of what is happening throughout our economy. I do not know how many people are subjected to NDAs in Luton North. I really should. We all should, and we should know which employers are abusing the system.

Why do people sign NDAs, and why are they predominantly women? It is because of the huge power imbalance. We have heard about the low pay, and the lack of justice and of access to justice. They often feel that it is their only option and their only way out. They think, “If I don’t take this, what else am I going to get?” The big CEO of a corporation is not going to get taken down by the cleaner. That just does not happen; it only happens in films. That is because our justice system is not balanced or fair, and people feel that the oppression of workers is just part of the cost of doing business.

An NDA not only leaves the victim without a sense of justice, but protects a culture of wrongdoing. Not only does it protect the wrongdoer every step of the way, but, a large chunk of the time, they actually fail up. I have heard about instances of sexual harassment in the workplace in which the woman has to sign an NDA and leave, while the man gets to stay—in fact, not only does he stay, but he is either moved aside to a different department or promoted to gain more power and access. That is happening in all parts of our economy, in every workplace. We saw it at Harrods, and we have just seen it at Primark. It is really downplayed. I think that NDAs are used to downplay the severity of what they are truly hiding. As the hon. Member for Strangford (Jim Shannon) said, people hide disgusting behaviour behind NDAs.

The boss of Primark has just resigned for what he called an “error of judgment” with regard to his behaviour towards a woman. An “error of judgment” is when I decide to dress for winter but it is really hot outside; it is not something that a CEO has to resign for because of his behaviour towards a woman. It is not just about protecting the victim; it is also about how we improve the culture in business and in our economy. As my right hon. Friend the Member for Sheffield Heeley said, this does not just happen in one sector; it happens in charities, in finance and, unfortunately, in trade unions. We have heard about it at the Women and Equalities Committee.

I plead with the Minister to not forget self-employed workers. Whatever changes we make—and I hope that we make progress—we must consider the vulnerability of self-employed workers. The Committee heard that loud and clear in the evidence we received on our misogyny in music inquiry. We heard from brave witnesses, including Charisse Beaumont, Lucy Cox and Celeste. Dr Beaumont, who is the CEO of Black Lives in Music, said:

“We have hundreds of stories from women of being harassed including sexually assaulted by male artists as well as promoters, people assaulting women in music education, participating in almost naked casting videos, young women pressured to drink and take drugs, who are then assaulted, male producers grooming young female vocalists.”

She added:

“It’s rife in all genres, particularly classical music.”

I want to pay tribute to one of the very brave female artists who did speak out. She came from the classical music industry, and she spoke at our Select Committee. I really do recommend reading her testimony. She spoke about the horrendous behaviour of some of the conductors towards female classical musicians, the sexual favours that those women were asked for in order to get the first positions, and the fact that one conductor had said, “Well, if you want to be in the first chair, you’re going to have to wait until someone dies or gets pregnant.” In the classical music industry, they equated pregnancy with death. I want to say how difficult it was, and how hard my Clerks had to work, to find women who were prepared to speak out against the misogyny and sexual harassment that they had faced in the music industry.

The last Tory Government agreed that there was a problem with misogyny in music but rejected every one of the Committee’s recommendations. I ask this Government to do better. One of those recommendations was about banning NDAs. The general secretary of the Musicians’ Union, Naomi Pohl, has called for a ban on NDAs that prohibit the disclosure of sexual harassment, discrimination or bullying. Some 51% of women report experiencing gender discrimination in music, and 32% of them have been sexually harassed while working as a musician. That proportion increases if the woman is from a global majority—black, Asian or minority ethnic—background, disabled or LGBT+.

Lawyers are probably getting quite excited by the thought of what alternatives there might be to NDAs, so I say to the Minister that we need to be innovative. We need to be ahead of the curve and of all the bad-faith actors. My right hon. Friend the Member for Sheffield Heeley is right: we should not be falling behind as a country; we should be leading the way. Minister, the evidence is there—let us get to it.

[Mr Clive Betts (in the Chair)]

I thank everyone for their co-operation. We now move on to the Front-Bench spokespeople, each of whom has, as a guide, around 10 minutes, but we clearly have more time than that if people want to take it.

10:15

[Josh Babarinde (Eastbourne) (LD)]

I hope not to take the full 10 minutes, but it is an honour to serve under your chairmanship, Mr Betts. I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on securing this important debate on the use, or indeed the misuse, of non-disclosure agreements in cases of civil harassment, discrimination and abuse.

The Liberal Democrats, like all of us in the Chamber, believe in a society that upholds transparency and fairness, and protects individuals rather than shields the institutional reputations of the powerful. As we have heard, and as the #MeToo movement uncovered, when NDAs are misused they represent a systemic failure to prioritise the rights of victims and survivors over the convenience of the powerful.

We must remember that the original intent behind NDAs was to protect sensitive business information and ensure confidentiality in legitimate commercial dealings, but there has been significant creep. They were never meant to be weaponised as tools to silence victims, particularly women, as the hon. Members for Bolsover (Natalie Fleet) and for Luton North (Sarah Owen) highlighted, to suppress evidence of wrongdoing or to allow perpetrators to evade accountability, but bad-faith actors have transmogrified them, and too often now, NDAs are used in precisely that way—to bind victims of harassment, discrimination and abuse into silence and to isolate them. We hear stories of the loneliness of the many victims who speak off the record. Ultimately, they are denied justice.

This happens across many sectors, including the creative industries, as my hon. Friend the Member for Guildford (Zöe Franklin) and the hon. Member for Luton North said; the NHS, as my hon. Friend the Member for Newton Abbot (Martin Wrigley) described; and the retail and hospitality sectors, as the hon. Member for Lichfield (Dave Robertson) said. Imagine for a moment the plight of a new mum who worked in the financial sector, but who returned from maternity leave to face mistreatment and eventually her employment was terminated.

[Mrs Russell]

On that point, will the hon. Member join me in encouraging the Government to bring into force clause 24 of the new Employment Rights Bill as soon as is humanly possible? It will enable the Government to make provision in respect of dismissals relating to pregnancy other than those covered by redundancy. That was a huge element of the dismissals that I used to see wrapped up in NDAs.

[Josh Babarinde]

I would love to study that particular dimension. We must defend the rights of pregnant women and new mums, who have been so let down by our legislative framework, including the individual I am asking hon. Members to imagine. She went through mediation, where it was agreed that she would receive a severance payment in exchange for signing an agreement that included a gagging clause. She said:

“The net effect was that I was unemployed and, whilst I was financially compensated, I was unable to explain to future employers why I had left that employment and why it wasn’t my choice to do so.”

That is exactly the point that the hon. Member for Congleton (Mrs Russell) made. By the way, I really feel that her contribution to this debate has been kick-ass—I am not sure that that that is a parliamentary term, but I am sure that hon. Members agree. Further, this new mum said:

“I felt I was the party in the right and yet I was the one who had the uncertainty and stress of being unemployed and having to job hunt with a 9 month old baby.”

There is no need to imagine such a scenario because it is a true story. The only reason I cannot name the individual or the employer is that, although we might be protected by parliamentary privilege in this place, the lady whose circumstances I just described is not.

This is the reality faced by countless individuals across the country, right under our noses, and it is an injustice that cannot be tolerated. We as Members of Parliament have to act decisively to end this moral and regulatory failing. First, and no two ways about it, NDAs should be outlawed in cases of sexual misconduct, harassment and bullying, to ensure that no victim is silenced, no victim is prevented from seeking justice and no police or regulatory investigation is obstructed. We have already seen encouraging steps in the legal and academic sectors to ban the use of NDAs in such cases. We heard a bit about those from the right hon. Member for Sheffield Heeley, but these piecemeal efforts are not enough.

We need comprehensive legislation, and there is precedent for that in other jurisdictions, as has been touched on already. In Prince Edward Island in Canada, new legislation restricts the use and content of NDAs in cases of sexual harassment and discrimination in all out-of-court settlements where a survivor does not want it. In the USA, the Speak Out Act was passed in 2022 prohibiting non-disclosure and non-disparagement clauses agreed to before a dispute that involves sexual misconduct. Last month, Ireland became the first jurisdiction in the world to legislate country-wide against the misuse of NDAs. In the light of that, the efforts of the right hon. Member for Sheffield Heeley in her amendment are extremely laudable, as are the similar efforts of my hon. Friend the Member for Oxford West and Abingdon (Layla Moran). That is the first thing we must do: outlaw NDAs in such circumstances.

Secondly, we must ensure that individuals who sign NDAs outside those circumstances but under duress or intimidation have a clear and legal route to challenge them. Too often, victims sign these agreements without fully understanding their rights or the full extent of the implications. They end up, as the hon. Member for Strangford (Jim Shannon) said, tied up in knots in their endeavour. I have heard from a man in this scenario who said,

“I had no resilience left to fight an investigation nor a tribunal so I accepted.”

On the powerful point raised by my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), we must guarantee that legal advice is readily available, independent and free from conflicts of interest for people in these scenarios, so that no one feels coerced into silence by a document they barely understand.

Thirdly, we must foster a cultural shift in public and private organisations so that they no longer view NDAs as a convenient tool to shield themselves from scrutiny, and we can move away from the culture of fear, which the hon. Member for Gower (Tonia Antoniazzi), who is no longer in her place, referred to. Employers must be held accountable not only for misconduct that occurs on their watch, but for any attempt to cover it up. Transparency should be the norm, not the exception.

Finally, we must support victims and survivors in speaking out. That means strengthening whistleblower protections, including through establishing a dedicated office of the whistleblower, which the Liberal Democrats advocated for in our manifesto, alongside organisations such as WhistleblowersUK. There is a particular whistle- blower in my constituency who I will not name, but she knows who she is. She is campaigning hard on this front as well.

Silence benefits only those who perpetrate harm. Our role must be to amplify the voices of those who have been silenced for too long. This debate, while ostensibly technical and legalistic, gets to the core of what kind of society we want to be. Do we want to be a society in which institutions prioritise their reputations over human dignity, and victims are forced into silence while abusers continue unchecked, or do we want a society in which justice prevails, transparency is valued and every individual regardless of their status or power can be held accountable for their actions? I know which society I want to live in, and I think that all of us in this Chamber today are on the same page—in fact, I am confident of that. Liberal Democrats look forward to working with the Government on a cross-party basis to stamp out this insidious practice once and for all. We look forward also to hearing what steps the Minister will take to make that a reality.

[Mr Clive Betts (in the Chair)]

I now call the spokesman for the official Opposition.

10:25

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship in this important debate, Mr Betts.

I congratulate the right hon. Member for Sheffield Heeley (Louise Haigh) on securing this debate. I remember sitting as the shadow Minister on Report of the Employment Rights Bill, listening to her speak about her amendment to the Bill in that debate. All too often, we sit in the main Chamber and listen to speeches from Members in all parts of the House that are, perhaps loosely, hung off handouts from Whips.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

By you. [Laughter.]

[Greg Smith]

I can say in response to the Minister’s quip from a sedentary position that I have never spoken with a handout from the Whips.

Sometimes, we sit there in the main Chamber listening to the usual yah-boo of party politics, but every so often there is a speech—it can come from any part of the House—that makes our ears prick up a little bit and think, “They have a point.” The Member is making a genuine case about a real grievance or a real problem out there in our country that needs resolution, almost undoubtedly via primary legislation. I therefore congratulate the right hon. Lady on her passion and dedication to this cause, and on ensuring that we continue to debate it here in Westminster Hall this morning.

The right hon. Member was absolutely right to highlight the two-tier absurdity brought about under the current law. I was particularly struck by her point that 27 states in the United States of America have passed legislation on this issue. The United States is hardly a nation that is looked to for high-end employment rights. It is a country where, for example, most people get only two weeks’ holiday a year, and where maternity and paternity rights are far short of those we have here, so the fact that those 27 states have passed laws on this issue in varying respects is something that we should reflect on.

During the debate the hon. Member for Guildford (Zöe Franklin) spoke powerfully about the creative sector; the hon. Member for Congleton (Mrs Russell) clearly brought extensive experience of this matter from her time as a solicitor; my hon. Friend the Member for Strangford (Jim Shannon) brought his usual eloquence to supporting this cause; the hon. Member for Lichfield (Dave Robertson) gave powerful examples from his experience working for a trade union—the example he gave about a school setting was particularly powerful—and the hon. Member for Newton Abbot (Martin Wrigley) powerfully cited a local case. The hon. Member for Luton North (Sarah Owen), who is Chair of the Women and Equalities Committee, gave a particularly powerful speech, reminding us that of course this issue is not about banning NDAs in their entirety, but about stopping this very particular abuse.

In fact, the hon. Lady’s most powerful point—on top of the one about self-employment, which is a subject that I will always prick my ears up about, having been self-employed myself for 15 years before I entered this House in 2015—was that people are being forced into signing these agreements at the lowest ebb of their lives, at the time when they are at their most vulnerable. We should face that fact and reflect upon it.

I am grateful for this opportunity to continue the debate on non-disclosure agreements, which have become a tool that too often is used to silence victims of harassment, discrimination and abuse in the workplace. This is not just a matter of employment law; it is a fundamental issue of justice, accountability and transparency. At their worst, NDAs allow perpetrators to escape scrutiny, enabling toxic workplace cultures to persist unchecked. Undoubtedly, some victims, facing an imbalance of power, are pressured into signing away their right to speak out in exchange for a financial settlement. This not only denies individuals the justice they deserve, but prevents organisations, and indeed our society at large, from learning from past failure and making necessary change.

Of course, we are not in any way suggesting that every single NDA out there is inherently wrong. There are legitimate reasons for their use in protecting trade secrets or commercially sensitive information. However, when they are used to cover up wrongdoing, they become a shield for bad employers and an obstacle to a fair and open working environment. Like other Members, I believe that the vast majority of employers do act in good faith and are good people, but where it goes wrong and they are acting in bad faith or—let’s say it how it is—criminally, NDAs should not be a shield for that.

The Government have said they are committed to tackling workplace discrimination and harassment. There are elements of the Employment Rights Bill that the Opposition support, but we had a particular debate about the provisions on third-party harassment. I say this in a spirit of wanting to solve this problem: we all want to see harassment stamped out, but those provisions will have the unintended consequence of what we call the “banter ban”, whereby an employee can take their employer to court if they happen to overhear something that politically offends them in a hospitality setting or whatever it might be.

[Mrs Russell]

rose—

[Greg Smith]

I will just finish the point; I am pre-empting the hon. Lady. There is still time, as the Bill passes through the other place, to look again at this legislation. Instead of risking those unintended consequences in hospitality settings, for example, the Government could put provisions in the Bill to tackle the serious, life-changing problem that we are debating this morning and stop this use of NDAs to silence victims.

[Mrs Russell]

There is a defence to that form of discrimination, which is where an employer has taken all reasonable steps to prevent it—and I speak only of reasonable steps, not every single magical thing that could be thought of. In fact, there was a case just last week in the Employment Appeal Tribunal in which an employer did successfully defend a harassment claim on the basis that it had taken all reasonable steps to prevent harassment. Does the hon. Gentleman agree that the position is not as extreme as he is presenting by any stretch of the imagination, and that as long as hospitality businesses have taken all reasonable steps to prevent their employees from being harassed, they will be fine?

[Greg Smith]

I do not particularly want to relitigate our debate in the main Chamber a few weeks ago. It is the job of the Opposition to kick the tyres on legislation that the Government put forward, and that is what did in that debate. I hope the hon. Lady turns out to be right, but the Employment Rights Bill is still a Bill, and when it undoubtedly becomes an Act due to the parliamentary arithmetic at the moment, we will be able to fully test that and see who is right.

I want to focus on the importance of the issue before us today. His Majesty’s loyal Opposition echo the question that Members have asked the Minister this morning: when can we expect legislation to be brought forward to tackle this issue? Will it be stand-alone, or will the Government amend the existing vehicle available to them in the House of Lords?

We also need to ensure that the Government’s own house is in order on this front. I gently ask the Minister for transparency on the Government’s own use of NDAs. How many non-disclosure agreements have been used across the civil service since the Government took office last July? Do the Government rely on these agreements to settle disputes within their own Departments? If the Government believe, as I hope they do, that NDAs should not be misused—and misused is a light term for this—they must lead by example.

I do not believe that this is about party politics; it is about ensuring fairness and justice in our workplaces. We must end the practice of silencing victims and start fostering a culture where wrongdoing is exposed and addressed. I look forward to hearing the Minister’s response and, more importantly, seeing the meaningful action that every Member who has spoken in this debate this morning wants to see come to pass.

[Mr Clive Betts (in the Chair)]

I call the Minister. I would appreciate it if he could leave two minutes at the end for the mover to wind up.

10:35

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair this morning, Mr Betts.

I congratulate my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) on securing this debate. As the shadow Minister said, her contribution on Report of the Employment Rights Bill was particularly powerful and certainly helped to shape some of my thinking about where we need to go on this. I am grateful, too, for all the thoughtful and considered contributions from all parts of the Chamber.

Let me pay my respects to the individuals whose stories we have heard both today and on Report—stories of awful exploitation, harassment and terrible treatment, which have been silent for far too long. As my right hon. Friend said, often we are talking about some of the most vulnerable people in the workplace, and at the most vulnerable time for them. Often, only those who have the means and the confidence to take on their employer escape the clutches of NDAs.

I wish to acknowledge the comments made by the hon. Member for Eastbourne (Josh Babarinde), who speaks for the Liberal Democrats, about the work that the hon. Member for Oxford West and Abingdon (Layla Moran) has done in this area. She has campaigned tirelessly, as have many Members, alongside organisations such as Can’t Buy My Silence to ensure that victims of sexual harassment, discrimination and bullying are able to speak up and get the help that they need.

Many of the issues that we are debating today are not new, but things have been talked about that I was not aware of, such as the classical music sector, which was mentioned by my hon. Friend the Member for Luton North (Sarah Owen). Clearly, there is widespread concern about the use of non-disclosure agreements. I recognise that this is an important issue. As we know, NDAs or confidentiality clauses are legally binding. Their intention is to keep information confidential but, as many Members have said, they also have a legitimate role in contracts to protect trade secrets, intellectual property and commercially sensitive information.

[Josh Babarinde]

Does the Minister agree that the purpose of an NDA is, for example, to protect the identity of the 11 spices that KFC uses in its chicken, and not to protect sex pests? If so, what action will he take, as soon as possible, to protect those victims and survivors over the rich and the powerful?

[Justin Madders]

I shall come on to the action that we are taking a bit later. None the less, that is an important point: there are legitimate uses for NDAs and it is important that we get that balance right, making sure that those commercial and legitimate business interests are protected while, at the same time, not deliberately silencing victims. NDAs should never be used to silence victims of harassment or any other misconduct in the workplace.

There are important legal limits to the use of NDAs in the employment context. Any clauses of an NDA that were to stop a worker from blowing the whistle, for example by making a protected disclosure to a lawyer or a prescribed person, are not enforceable. The use of an NDA by an employer could also amount to a criminal offence if it is an attempt to pervert the course of justice or conceal a criminal offence. A settlement agreement under the Employment Rights Act 1996 and any confidentiality clauses it contains would be void if the worker did not receive independent advice on the terms and effects of that agreement.

The Equality and Human Rights Commission and the Advisory, Conciliation and Arbitration Service have both published guidance on NDAs to ensure that workers and employers understand those limitations, but we have heard from many hon. Members that the guidance is not being observed in practice as much as we would expect. My right hon. Friend the Member for Sheffield Heeley mentioned the guidance from the Solicitors Regulation Authority, which has issued an updated warning notice to remind the legal profession that NDAs should never be used to try to prevent the lawful disclosure of serious misconduct or potential crime. The SRA is also clear that evidence of the use of inappropriate clauses in such agreements may lead to disciplinary action.

Nevertheless, we hear the calls to go further, and the issues raised today highlight some of the key areas that we want to further investigate. It is clear that there are still serious concerns about how employers are using NDAs to silence employees. We have heard today that victims often feel that they are left with little choice but to leave their employer, without any assurance that their employer is addressing the misconduct and dealing with the perpetrator.

[Martin Wrigley]

Does the Minister agree that we need to change the social contract for companies such that they no longer take all the benefits of limited liability and simply focus on shareholder value? Will he support my better business Bill—the Company Directors (Duties) Bill—which will have its Second Reading on 4 July, and meet me to discuss it? The Bill is backed by some 3,000 businesses, the Institute of Directors and others. As I mentioned, it would balance the responsibility of company directors with the interests of shareholders, employees and the environment; fundamentally change their basic responsibilities in how they run their companies; and therefore turn the purpose of the company to good, including that of the employees. It would prevent many of the circumstances that we are describing today.

[Justin Madders]

I have not seen the hon. Member’s Bill, and I suspect that its application is rather broader than just to the topic we are debating. We are looking at corporate governance, and in due course we intend to introduce legislation that may pick up on a number of the issues addressed by his Bill.

As we have touched on, a number of recent reports, such as the Women and Equalities Committee’s “Misogyny in music” and the Treasury Committee’s “Sexism in the City”, highlight that NDAs do not stand up in a court of law and are often used to chill victims.

The hon. Member for Guildford (Zöe Franklin) spoke about the good work of the Creative Industries Independent Standards Authority. I understand that the Culture Secretary recently met the authority to discuss how they can work together to improve workplace standards and behaviour in the creative industries. We want to support the authority moving forward; that is a matter for the Culture Secretary, and I am sure that she continues to engage with it.

[Louise Haigh]

The Minister talked about protected disclosures, including in relation to criminal offences. As my hon. Friend the Member for Congleton (Mrs Russell) said, this area of law is complex, and low-income workers in particular cannot access the kind of legal advice that she provided so authoritatively to her clients. Does the Minister agree that we therefore need to end the blanket use of NDAs so that it is much clearer that victims of abuse, harassment or discrimination cannot be silenced? It is next to impossible for them to navigate this complex area of law without specialist legal support, which they are clearly struggling to access.

[Justin Madders]

My right hon. Friend makes an important point: this is a complex area for individuals to navigate.

My hon. Friend the Member for Congleton (Mrs Russell) spoke about her experiences in the profession, with which I am familiar. Non-legally qualified consultants often simply apply boilerplate clauses to agreements, which has a practical impact on the victim’s ability to explain how their employment ended. I have seen agreements that prevent people from even confirming that they have reached a settlement, which makes it doubly difficult for them to explain that when seeking future employment prospects. My hon. Friend also talked about the financial contribution that employers provide towards that advice, which does not always cover the cost of taking proper advice, rather than going through a rubber-stamping exercise. Both those issues highlight the inequality of arms in the workplace when disputes arise.

The hon. Member for Strangford (Jim Shannon) made an excellent contribution, as always. He was absolutely right to highlight that the original intention behind NDAs has been distorted. They were about commercial confidentiality and protecting business interests, but they are being used for wider, less justifiable purposes.

My hon. Friend the Member for Lichfield (Dave Robertson) raised the terrible case of Mohammed al-Fayed. He was right to say that we do not know how many victims there are; some will not come forward because the gagging orders still prevent them from speaking out or make them feel that they cannot do so. Of course, we addressed that to some extent in the Employment Rights Bill, in which we now make it clear that a complaint of sexual harassment qualifies as a protected disclosure under the whistleblowing Act. We will never know whether that kind of protection would have prevented the atrocities committed by Mohammed al-Fayed, but it would at least have given people some reassurance that they could speak out and have additional protections.

[Mrs Russell]

As I understand it, the whistleblowing provisions in the Employment Rights Bill will let people go to the police or a regulator, but they do not automatically mean that they can go to the media, although they might be able to in some circumstances. If the Minister does not mind my saying so, what he has described is possibly not a blanket solution to the problem.

[Justin Madders]

My hon. Friend highlights some of the limitations of the whistleblowing Act, in terms of what qualifies as a protected disclosure. As I have commented previously, that legislation needs to be looked at again.

The hon. Member for Newton Abbot (Martin Wrigley) talked about the widespread use of NDAs in the NHS. That highlights that there is no sector of the economy in which such agreements are not in use.

The hon. Member for Mid Buckinghamshire (Greg Smith) talked about the use of NDAs in Government Departments. I will make inquiries about that and get back to him, and I will pass on the comments of the hon. Member for Newton Abbot to the Department of Health and Social Care.

My hon. Friend the Member for Luton North, Chair of the Women and Equalities Committee, gave an informative and well researched speech, as always. She was right that this is not just about protecting victims; there is a wider issue relating to the growth agenda. These issues are debilitating and damaging for victims and can have an impact on their ability to return to work. She made the important point that it is nearly always the victim who has to leave their employment and move on. As we have heard, they do not always have a clear explanation to give prospective employers about why they have had to leave. It is usually the man, who is often in a position of greater power, who stays in work, and sometimes advances off the back of the claim. That relates to the culture in organisations: victims are not protected and perpetrators are often supported because they are seen to be in a more powerful position in the workplace. My hon. Friend also made an important point about protecting self-employed people and contractors in particular industries. We will need to consider that further.

On the current legislation being passed, we are pressing ahead with plans to commence the provisions relevant to NDAs in the Victims and Prisoners Act 2024 and the Higher Education (Freedom of Speech) Act 2023, as a number of hon. Members, including my right hon. Friend the Member for Sheffield Heeley, mentioned. When commenced, section 17 of the Victims and Prisoners Act will ensure that clauses in NDAs cannot be legally enforced where they seek to prevent victims of crime from reporting a crime, co-operating with regulators or accessing confidential advice and support. It will provide that clauses in NDAs that seek to prevent disclosures that are necessary to access confidential advice and support needed to cope with and recover from the impact of crime are unenforceable.

The Liberal Democrat spokesperson, the hon. Member for Eastbourne, talked about a new mother’s experiences of discrimination and the consequences of that. The Employment Rights Bill will provide a new baseline of protection, enhanced dismissal protections for pregnant women and mothers, extra requirements to take all reasonable steps to prevent sexual harassment—something that has been a matter of considerable debate—and protection of workers against third-party harassment. It will also make it clear that the disclosure of information can be a protected disclosure. We think all those things will improve the workplace experience, but I hear the calls to go further.

We know that there are calls to roll out the approach in higher education to the whole economy. My right hon. Friend the Member for Sheffield Heeley provided a clear example of how the provisions in the Employment Rights Bill will not apply to an outsourced worker working in higher education. The legislation has not yet been enacted, but the Government intend to press on with it shortly. I share concerns that something needs to be done, but the changes that have been proposed through amendments to the Employment Rights Bill would need a significant amount of engagement with workers, employers and stakeholders, as well as an assessment of the impact on sectors and across the economy.

This is a complex area of policy, as we have heard today, and it is important to take a balanced approach to make sure that we reach the right end point. There are different views and opinions. There are organisations and hon. Members calling for a ban on NDAs in specific circumstances. Some advocate for a greater say for victims in when they can be legitimately used. Others warn about unintended consequences for victims who are looking to settle a claim to avoid the stress of litigation.

[Louise Haigh]

I am grateful to the Minister for being so generous with his time. I completely accept that there are different versions of the amendment that could be successful and I accept the need to consider the impact on businesses. Will the Minister meet me and other interested Members to look at a way in which this amendment could be written that would satisfy him and the Government? We have heard today that there is support from the official Opposition and the Lib Dems. There is every chance that this could receive serious cross-party support in the other place and pass into the Employment Rights Bill. Will he meet me and others to discuss exactly what the amendment could look like?

[Justin Madders]

I am always happy to meet my right hon. Friend. It would be good to get cross-party support on our Employment Rights Bill—something that has been sadly lacking in the Commons so far. The shadow Minister is grinning knowingly—I am not sure whether that means we shall ever get him on board for the whole package. I am happy to work with individual Members. I would just note that there was a consultation under the shadow Minister’s party’s watch, and a number of proposals were developed that never saw the light of day because the previous Government did not introduce an employment rights Bill. His late conversion to this cause is welcome, but he should recognise that his party perhaps did not do enough in government. Some of the recommendations made under the previous Government did not go as far as is reflected in the general mood of the Chamber today.

There is a range of issues that we need to consider to get this right, such as whether some sectors, such as the creative industries, need particular protection, and the different relationships—we have heard about self-employed people and how this would operate for those in the gig economy. We can have the debate about whether they are self-employed or workers: I am sure that will be returned to on many occasions. We also need to consider the international approach—we have heard some examples from across the pond, and Ireland recently introduced its own legislation—and how the legislation will apply to different groups with protected characteristics.

It is important to ensure that any work we do does not create a new loophole for clever lawyers to exploit, so it should be future-proofed as much as possible. We also need to ensure that any legislation includes an option for a victim to freely choose to have an NDA without pressure, if that is what they want. We need an awful lot of discussion to get that right. Hon. Members have mentioned access to justice and legal advice that is timely, correct and affordable. A cultural shift from employers is also important. Legislation can say what it wants, but unless we get employers to tackle rather than protect the perpetrators of these terrible acts, we will continue to debate these matters.

As my right hon. Friend the Member for Sheffield Heeley said, I am happy to work with hon. Members. I recognise that non-disclosure agreements are important and need looking at. I thank her for securing the debate and am happy to continue working with her and other hon. Members to get this right.

10:56

[Louise Haigh]

I have not been in a Westminster Hall debate for nearly six years, because I was faffing around in the shadow Cabinet and then the Cabinet. I do not recall being in a Westminster Hall debate where there has been so much cross-party support. I am incredibly grateful for the quality of contributions today and the support from the official Opposition and the Liberal Democrats.

I completely agree that the contribution by my hon. Friend the Member for Congleton (Mrs Russell) was kick-ass. Her experience in this area is second to none and shows how widespread the issue is. As my hon. Friend the Member for Luton North (Sarah Owen) said, the scale and nature of the crimes covered up, as demonstrated today, warrants urgent and immediate attention. I am grateful to the Minister for committing to work with those of us who care about this issue, looking at what steps can be taken. If we can get cross-party support for an amendment to the Employment Rights Bill, we can ensure that victims no longer have to suffer in silence.

Question put and agreed to.

Resolved,

That this House has considered Government policy on the use of non-disclosure agreements in civil harassment, discrimination and abuse cases.