Consultation has begun on restricting NDAs under the Employment Rights Act 2025. New rules may limit confidentiality in discrimination and harassment cases from 2027, with “excepted agreements” still permitted under set conditions.
Employment Law & HR|28 April 2026
Insight
We know that the Employment Rights Act 2025 includes new restrictions on the use of NDAs (Non-Disclosure Agreements). It appears likely that NDAs will be void if they prevent a worker from making allegations about harassment or discrimination.
The government intends to introduce specific conditions that must be met for such agreements to remain valid, and the detail is now becoming clearer. This is important for all employers who use settlement agreements in cases involving any allegation of discrimination (including harassment).
These changes are not expected to take effect until 2027. Consultation is currently underway to determine what will qualify as an “excepted agreement” – in other words, what will still be permitted.
The starting point is that an NDA will be void if it prevents an employee from speaking out about:
This applies to all forms of discrimination and all types of allegations, whether well founded or not.
Despite this general restriction, NDAs meeting certain conditions will be treated as “excepted agreements” and remain valid. The government is currently consulting on what those conditions should be.
The consultation paper suggests that an NDA should be valid if:
The government is not currently proposing to require employers to fund the worker’s independent advice, although this is already common practice in settlement agreements.
Settlement agreements already allow confidentiality carve-outs in certain situations, such as reporting to the police, notifying regulators, or making a protected disclosure. It is expected that excepted agreements will take a similar approach. It is also likely that disclosures to close family members will continue to be permitted, as is currently the case.
The proposals suggest that employers will still be able to include NDA and confidentiality provisions in settlement agreements, provided the required conditions are met. As these broadly reflect existing practice, the practical impact may be limited in many cases.
However, the consultation raises an important question: should NDAs only be valid if requested by the worker, or should employers also be able to initiate confidentiality provisions?
Depending on the outcome, this could introduce additional complexity. It may raise practical issues around how such a request is made, and whether employees could feel pressured to agree. This, in turn, could affect the validity and enforceability of agreements.
The consultation remains open until early July, with new rules not expected to come into force before 2027.
Related Services
Understand employer rights when employees have second jobs, including contracts, working time, conflicts of interest and dismissal.
Read More
Download our probationary period resource pack to help prepare for the Employment Rights Act changes from January 2027.
Read More
Download expert guidance on UK trade union reforms and prepare your organisation for Employment Rights Act changes.
Read More
Employment law tips for employers managing absence, flexibility and inclusion during the 2026 FIFA World Cup.
Read More
Guidance for employers on managing workplace distraction, excessive phone use and digital overload at work.
Read More
Key April 2026 changes to trade union recognition rules and what employers should do ahead of wider reforms later this year.
Read More
Employers can voluntarily publish menopause and gender pay gap action plans from April 2026 ahead of the 2027 legal requirement.
Read More
Understand SSP 2026 updates, employer responsibilities, and common pitfalls to keep your business compliant and protect staff rights.
Read More
EAT confirms employers should assess redundancies forward-looking, not retrospectively, when deciding if collective consultation is needed.
Read More
Learn the 2026 National Minimum Wage rates, common employer pitfalls, and how to stay compliant with new Fair Work Agency rules.
Read More
ERA 2025 reforms take effect February 2026, changing industrial action rules, employee protections, and union obligations.
Read More