Sir Philip Green, other famous faces and why NDAs matter

Non-disclosure agreements (also known as “NDAs”) have dominated headlines for the better part of 2018. A non disclosure agreement is a legal contract that creates a confidential relationship between two groups or individuals so that information is not made public. They are commonly used to protect information that is deemed confidential.

The BBC reports that NDAs or “hush agreements” have been used by rich and powerful people including Sir Philip Green, Donald Trump and Harvey Weinstein.  Employment settlement agreements usually include an obligation on the parties to keep the terms confidential and confidentiality clauses are used when an employee leaves a job, so what they know can’t be used against their old employer.

Our specialist employment law partner, Jahad Rahman was interviewed on the BBC news and he was asked to comment on the use of NDAs in settlement agreements. Jahad Rahman said:  “they seem to be used as a weapon of choice. They are commonly known as a gagging clause [for a reason]. The employer can actually sue you if you break any term of that agreement.”

Prime Minister Theresa May recently said the government will look at “unethical” use of non-disclosure agreements.

To read the BBC article in full, please click here.

We regularly advise employees and senior executives on the terms and effect of settlement agreements, including confidentiality and non-bad mouthing provisions. If you have received a settlement agreement from your employer, or would like to discuss an employment law matter, please contact our specialist employment solicitors on 0207 956 8699 or info@rllaw.co.uk.