What the proposed changes to the Employment Rights Bill means for workplace disputes and NDAs
11th Jul 2025
Author: Mohammed Balal
On 10 October 2024, the UK Government introduced the Employment Rights Bill (ERB) with the aim of updating employment law. The original Bill proposed several changes to improve worker protections. However, significant new amendments have since been added as the Bill has progressed through Parliament, most notably changes to how Non-Disclosure Agreements (NDAs) can be used in cases of workplace harassment and discrimination.
These newly added provisions represent an important shift in focus and could have a major impact on how employers handle workplace disputes. Both employers and employees should be aware of what these changes mean and how they could be implemented.
Why have new amendments been introduced?
When the Employment Rights Bill was first introduced in October 2024, it did not contain any specific limits on NDAs in relation to harassment or discrimination. These new rules were introduced later, added as amendments during the Bill’s passage through Parliament in July 2025.
The Government’s aim is to strengthen protection for workers who want to report discrimination, harassment or mistreatment at work. For many years, NDAs in settlement agreements have sometimes been used to stop workers from talking about these experiences. While NDAs can be useful for resolving disputes privately, there has been growing concern that they have also been misused to hide serious workplace problems and silence victims.
What are the new proposed NDA restrictions?
Under the latest amendments, NDAs in settlement agreements will no longer be allowed to prevent workers from reporting discrimination or harassment. If an agreement tries to impose such restrictions, those clauses will be legally unenforceable.
These proposed limits will apply to all industries and sectors, not just specific fields like education or criminal justice. This means all employers will need to ensure their standard settlement agreements comply with the new rules if they become law.
There is one exception worth noting: NDAs will still be permitted in cases involving an employer’s failure to make reasonable adjustments for disabled workers. This could create some confusion about exactly when NDAs can or cannot be used, but the overall aim of the change is clear – to give workers more freedom to speak up about harassment and discrimination without fear of legal repercussions.
What might this mean for employers?
If the amendments become law, employers will not be able to rely on NDAs to keep complaints about discrimination or harassment confidential. This may make some businesses more cautious about settling disputes privately, as there will be no guarantee that issues will remain confidential.
While this might lead to an increase in claims being taken further, it could also encourage employers to address problems openly, improving workplace culture and showing a commitment to tackling discrimination and harassment.
Smaller businesses in particular may need more support to understand and implement these changes. The Bill was introduced quite late in the parliamentary process, with little consultation with businesses, which has caused some concern about how well-prepared employers will be. At the moment, it is also unclear whether there will be further opportunities for businesses to provide feedback on the proposals.
What happens next?
The Employment Rights Bill is still going through Parliament, so these proposals may change before they become law. There will be more discussions in the coming months, and it will be important for both employers and employees to stay up to date with developments.
If the Bill passes in its current form, employers will need to review their settlement agreement templates and ensure that their approach to handling workplace complaints aligns with the new rules. Staff who deal with HR, employee relations or dispute resolution may need updated training to understand the limits on NDAs and how to manage complaints transparently and fairly.
How can we help?
At Butcher & Barlow, we understand that keeping on top of changes to employment law can feel challenging, especially for smaller businesses without dedicated HR teams. We are here to help you understand what the proposed changes might mean for your business or your rights as an employee.
Whether you need help reviewing your employment contracts, settlement agreements or policies, or simply want clear, friendly advice on what to do next, our Employment Law Team can guide you through the process.
If you would like to discuss how these proposed changes might affect you or your business, please get in touch with Mohammed Balal or our Employment Law Team on 0161 764 4062. We would be happy to help.
The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.