City law firm Littler, which is known for advising corporate clients with employment issues, told City AM if the ban is passed, it “may make it harder for employers and workers to settle disagreements over unproven workplace accusations.”
Littler said it “could make employers less willing to settle discrimination and harassment claims if they are unable to include a reliable or comprehensive NDA in a settlement agreement.”
“A major unintended consequence of these proposals is that it could make employers less willing to settle discrimination and harassment claims if they are unable to include a reliable or comprehensive NDA in a settlement agreement,” said Ben Smith, a senior associate at Littler.
Smith added that without an NDA, “employers may have more of an appetite to investigate complaints and litigate in order to defend allegations against them that might make their way into the public domain,” which could see an uptick in tribunal proceedings.
“Reducing the usefulness of an NDA could end up having a significant impact on the ability of employers and employees to resolve disputes outside the tribunal,” Smith said.
