The government must reset the parameters around the use of non-disclosure agreements (NDAs) to protect employees who have experienced discrimination, the Women and Equalities Committee has urged.
In its report, MPs condemned the routine cover-up of allegations of unlawful discrimination and harassment in the workplace, as well as the fact that some employers fail to properly investigate allegations of unlawful discrimination.
The report highlights the difficulties of pursuing a case at employment tribunal and the imbalance between employers and employees, which can drive employees to feel that they have little choice but to reach a settlement that prohibits them from speaking out.
“We heard during our previous inquiry into sexual harassment in the workplace that the current use of non-disclosure agreements in settling such allegations is at best murky and at worst a convenient vehicle for covering up unlawful activity with legally sanctioned secrecy,” said Chair of the Women and Equalities Committee, Maria Miller MP.
“It is particularly worrying that secrecy about allegations of unlawful discrimination is being traded for things that employers should be providing as a matter of course, such as references and remedial action to tackle discrimination.”
Miller explained that the Committee’s investigation found that once an NDA had been signed, many individuals found it difficult to work in the same sector again. Some also suffered emotional and psychological damage as a result of their experiences, which can affect their ability to work and move on. There was also found to be a financial penalty of losing a job and bringing a case against an employer.
“Organisations have a duty of care to provide a safe place of work for their staff and that includes protection from unlawful discrimination,” said Miller.
“Some organisations now routinely settle employment disputes without the use of NDAs. We have put forward a range of measures to ensure more follow suit.”
The Committee has made several proposals to improve the use of NDAs. These include: ensuring that NDAs cannot prevent legitimate discussion of allegations of unlawful discrimination; require standard clauses to make it clear what information can and cannot be shared and with whom; strengthen corporate governance requirements to ensure employers to meet their responsibilities to protect those they employ from discrimination and harassment; and require senior managers to oversee anti-discrimination and harassment policies and procedures, and the use of NDAs in discrimination and harassment cases.
