NDA reforms explained: a guide for employers and employees

From October 2025, new legislation will reshape how confidentiality clauses, also known as non-disclosure agreements (NDAs) are used in England and Wales. Whether you are an employer drafting an agreement or an employee navigating a workplace dispute, the changes that will be introduced by the Victims and Prisoners Act 2024 will impact how NDAs will operate moving forwards.

What are non-disclosure agreements?

NDAs are legal contracts that restrict the sharing of specific information, in exchange for something of value, such as a compensation payment. NDAs can be in the form of a stand-alone contract or can form part of a larger contract. In the context of Employment law, NDAs can be entered into at the beginning of a person’s employment, or form part of a settlement agreement in respect of a potential or actual dispute between an employee and employer. Though they are designed to safeguard sensitive data, reputations, and commercial interests, NDAs have faced resounding criticism for being used to silence victims of misconduct and crime, especially in the dawn of the #MeToo movement which concerned cases involving harassment and gained global attention in 2017.

What is changing?

Though there are currently legal restrictions on how far NDAs can go in preventing disclosures, from Wednesday 1 October 2025, the legislation will go a step further. Section 17 of the Victims and Prisoners Act 2024 introduces new statutory limits on the enforceability of NDAs. The key change? NDAs signed on or after this date cannot legally prevent victims of a crime from making certain disclosures. These disclosures are called ‘permitted disclosures’ and are now protected by law. Namely, this includes sharing information with:

  • Police and prosecuting bodies (e.g., FCA, SFO, ICO)
  • Qualified lawyers for legal advice
  • Regulated professionals (e.g., healthcare workers, social workers, teachers)
  • Victim support services (e.g., helplines, counsellors, ISVAs)
  • Regulators (e.g., SRA, GMC)
  • To an authorised representative, for the relevant purposes
  • Close family members, for emotional support

This means that even if an NDA attempts to restrict the above conversations, such NDAs will be unenforceable in relation to these disclosures.

Why this matters for employers

If your business uses NDAs, especially in settlement agreements, it is crucial to understand the implications of the new legislation. We recommend that you review and update all template agreements, as necessary and consult qualified lawyers to ensure future NDAs comply with the new rules. Failing to do this could inadvertently lead to employers misusing NDAs which can damage business reputation and employee trust, amongst other serious implications.

Why this matters for employees

As an employee, this reform is empowering. It means that an employee can seek help, where relevant, without fear of breaching an NDA they may have agreed to. It means that you are protected when disclosing criminal conduct to trusted professionals, and there is now a clearer understanding of your rights when navigating workplace disputes which involve misconduct. We recommend that employees who sign an NDA from 1 October 2025 and believe they are a victim of crime, speak to a qualified lawyer to understand their rights under the new law and legal recourse that may be available to them.

What next?

Employers:

  • Audit existing NDAs and identify agreements that may be affected.
  • Update templates to ensure future contracts reflect the new legal limits.
  • Train and inform staff on the changes and how to handle disclosures.
  • Consult qualified lawyers and get tailored advice to avoid compliance issues.

Employees:

  • Know your rights and understand what disclosures are now protected.
  • Seek legal advice if you’re unsure about your NDA from a regulated solicitor.
  • Reach out to support services and professionals who can help you cope and recover.

One more thing – further changes under the Employment Rights Bill

In addition to the above incoming legislation, on 7 July 2025 it was announced that the Employment Rights Bill, which is currently going through Parliament, will look to ban employers from using non-disclosure agreements that look to silence workplace harassment and abuse. Again, this looks to limit the exploitative use of NDA’s.

If passed, the ban will mean that witnesses and victims to harassment, including sexual harassment or discrimination in the workplace, can speak out without the threat of being sued. The proposals aim to end the misuse of NDAs and to give workers the confidence that inappropriate behaviour in the workplace will be brought to light and dealt with, without the fear of repercussion or retaliation.

The ban will cover an agreement between the employer and worker and therefore, in the context of Employment law, will also apply to settlement agreements. Notably, this will apply to all forms of discrimination and harassment and all protected characteristics.

Employment Rights Minister Justin Madders stated, that “the misuse of NDAs to silence victims or harassment or discrimination is an appalling practice that this government has been determined to end”. Further, that “these amendments will give millions of workers confidence that inappropriate behaviour in the workplace will be dealt with, not hidden, allowing them to get on with building a prosperous and successful career”. Look out for further announcements that will be provided in due course.

Whether you’re an employer or employee, the best way to prepare is to contact your lawyer. Legal professionals can help you interpret existing NDAs, draft compliant agreements, navigate sensitive disclosures, and protect your rights and interests.

The content of this article is intended to provide a general guide to the subject matter.

If you have any questions or need further assistance regarding this topic, please contact Didi Ogbo, or a member of the Employment & Immigration team at Teacher Stern LLP.