The UK Government recently announced plans to ‘crack down’ on misuse of Non-Disclosure Agreements (NDAs) in the workplace.
The majority of NDAs are used lawfully and legitimately, but when a headline like this hits the media it can sometimes cause employers to be nervous or fearful of using them within their business. However, this shouldn’t be a reason to avoid them altogether.
NDAs can in fact be extremely important in order to protect legitimate business interests. They can restrict the use of information or ideas to a specific purpose and prohibit disclosure of commercially sensitive information to competitors.
The purpose of the Government’s proposed new laws is not to ban use of NDAs generally but misuse of them. For example, where an employer is seeking to prevent employees from speaking out on issues such as harassment and discrimination in the workplace.
ACAS is currently developing new guidance on the appropriate use of NDAs in the workplace, to incorporate any changes in legislation. We will of course keep you updated, but in the meantime if you’d like any advice or guidance in relation to using NDAs in your organisation please get in touch with us. We’re happy to help!
Tel: 0115 870 0150 or email us at firstname.lastname@example.org