What the potential end of NDAs may mean for the HR industry

One of the biggest changes that the Employment Rights Bill could bring concerns non-disclosure agreements (NDAs).

These are widely used in the business world, but the bill could make them legally unenforceable in certain circumstances. This blog will cover everything HR needs to know.

What NDA changes does the bill propose?

It should be noted that the bill would not make all NDAs unenforceable. Companies would still be free to use them for commercial matters like protecting sensitive data, trade secrets or intellectual property rights. The proposed changes concern NDAs related to harassment or discrimination. If the bill becomes law, firms will not be able to use them to silence claims of that sort. How then, should HR prepare for such changes?

Develop a positive culture

These proposals reflect wider changes in societal attitudes, which corporate culture needs to adjust to. HR services in Northampton and elsewhere should focus on developing workplace cultures that are respectful and transparent.

Provide training programmes for managers

Managers need to be trained for this new reality, so that they take discrimination and harassment seriously, rather than trying to sweep them under the rug. HR should arrange awareness training, as that is the most effective form of prevention.

Devise a complaints policy

It may be necessary for HR departments to come up with a new policy for dealing with discrimination complaints. Offering compensation together with an NDA will no longer be viable, so a policy based on investigation and fairness should replace it.

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