The use of non-disclosure agreements (also known as confidentiality agreements) and extent in application of them between workers and employers has increased over the last few years. They can be a useful tool for a business to protect sensitive information and prevent employees from sharing details about payments they have received.
However, movements including #MeToo and high profile cases, such as the Harvey Weinstein scandal, have caused the use of these agreements to come under scrutiny due to claims that they are being used to stop victims of alleged serious sexual assault and other criminal acts from speaking out.
Non-disclosure agreement advice for workers
What are non-disclosure agreements?
Employment Tribunals are generally open to the general public and the press, meaning that any allegations made by claimants, along with the Tribunal decision, are free to be reported on by the media.
However, it is now common practice for settlement agreements (previously known as compromise agreements) to include provisions which require both parties to keep the facts of the case and the settlement terms strictly private. These are often known as non-disclosure agreements.
This type of agreement may also be used in instances where a business is beginning a project or venture and may want to keep certain information secret. Consequently, they may ask an employee (or a prospective employee) to sign a non-disclosure agreement.
Should legal advice be sought before signing an agreement?
The majority of non-disclosure agreements place strict legal requirements on all parties involved, so it is advisable for employees to obtain legal assistance before signing.
An experienced employment law solicitor will be able to advise an employee on the full implications outlined in the agreement and/or recommend any specific changes to it before it is signed.
In certain cases, an employer may be willing to pay the employees’ legal costs in relation to the non-disclosure agreement, as it is also in their best interests that the employee is fully aware of the terms and obligations of the agreement before entering into it.
A non-disclosure agreement must work for all parties
When consenting to an agreement, all parties must be happy with the obligations that it places on them. An employer cannot place undue pressure on a worker to sign an agreement if they do not consent to all of the terms that are contained in it. Also, an employee should always be given a reasonable amount of time to consider the terms of the agreement so that they can get legal advice before entering into it.
It is important to bear in mind any restrictions or obligations that the agreement places on the employee in the future in relation to time limits on confidentiality, knowing who the employee can talk to about the job role (such as family members or close friends) and how the worker can refer to the period of employment in future job interviews and roles.
What a non-disclosure agreement cannot prohibit a worker from doing:
- Reporting any issues to the police or disclosing information in criminal law proceedings.
- If something is in the general public’s interest then clauses specified in the agreement cannot stop an employee from whistleblowing. Please note the laws in relation to whistleblowing are complex and legal advice should always be sought in the first instance.
Non-disclosure agreement advice for workers – how Nelsons can help
For further information on non-disclosure agreement advice for workers, please contact a member of our Employment Team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.