Non-disclosure Agreements

Debate between Sarah Russell and Martin Wrigley

Wednesday 2nd April 2025 Westminster Hall

[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.