Parliamentary group warns misuse of NDAs undermines workplace trust

A cross-party group of parliamentarians, business leaders and experts has warned that non-disclosure agreements are “good for no-one” when used to conceal harmful behaviour in the workplace rather than address it. The warning followed a roundtable held in Parliament on 18 March, hosted by the Policy Liaison Group on Workplace Wellbeing. Participants agreed that while NDAs can serve a legitimate purpose, their use to mask harassment or discrimination risks undermining accountability and eroding trust within organisations.

The discussion highlighted the need for a broader cultural shift towards psychological safety and more open workplace environments. Contributors argued that organisations must move beyond compliance with the Employment Rights Bill and focus on how people learn, perform and raise concerns in practice.

Maria Paviour, a member of the PLG Advisory Board, said that psychological safety should be seen as central to organisational effectiveness. She said that when employees are unable to speak openly about harm, mechanisms such as NDAs can entrench risk rather than manage it. Evidence presented at the session suggested that 79 percent of employees who report misconduct experience retaliation, while 43 percent of UK whistleblowers lose their jobs and often face long-term barriers to returning to work.

The group acknowledged recent legislative changes that render NDAs unenforceable in cases of harassment and discrimination, but said further action is needed to ensure these measures are effective. Layla Moran MP said that legislation marked only the starting point and called for continued scrutiny as secondary legislation is developed, including stronger regulatory oversight.

The roundtable also linked workplace culture to wider labour market outcomes. Baroness Smith of Llanfaes said that poor workplace environments can contribute to disengagement and reduced participation, with implications for economic growth. Zelda Perkins CBE argued that NDAs are often presented as a straightforward solution but in practice can protect poor behaviour while discouraging those who raise concerns.

Participants said there was broad agreement that responsible employers do not rely on NDAs as a routine mechanism. Their regular use was described as an indicator of deeper cultural issues, with organisations encouraged to treat them as a last resort rather than a standard response to workplace disputes.