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by Munro Research

Non-Disclosure Agreements Bill


Official Summary

A Bill to make provision about the content and use of non-disclosure agreements; and for connected purposes.

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Overview

This bill aims to reform the use of non-disclosure agreements (NDAs) in cases of bullying, harassment, or discrimination. It restricts the use of NDAs to prevent the concealment of such complaints, ensuring that victims can speak freely and that perpetrators are held accountable, while still allowing for NDAs if it is the express wish of the victim under strict conditions.

Description

The Non-Disclosure Agreements Bill defines key terms such as "responsible party," "relevant person," "bullying," "harassment," and "discrimination." It prohibits responsible parties or alleged perpetrators from entering into NDAs that conceal information about complaints of bullying, harassment, or discrimination, except under specific circumstances.

Exceptions are made only if:

  • The NDA is the expressed wish of the relevant person.
  • The relevant person has received independent legal advice.
  • There have been no attempts to unduly influence the relevant person's decision.
  • The NDA does not harm the health and safety of third parties or the public interest.
  • The agreement allows the relevant person to waive confidentiality in the future and outlines a process for this.
  • The agreement has a defined and limited duration.

The bill mandates that NDAs, where permitted, be written in plain language.

Government Spending

The bill doesn't directly specify government spending. The cost will likely relate to any increased enforcement and potential legal challenges, but no figures are provided in the bill text.

Groups Affected

  • Victims of bullying, harassment, or discrimination: The bill could empower them to speak out by limiting the use of NDAs to silence them.
  • Employers and responsible parties: They will face restrictions on using NDAs to cover up workplace misconduct.
  • Alleged perpetrators: They will have less recourse to using NDAs to avoid accountability.
  • Legal professionals: Increased demand for legal advice concerning NDAs is anticipated.
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