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The impact assessment confirms the Government’s aim to balance the need to protect individuals from the misuse of NDAs, with allowing legitimate confidentiality clauses where appropriate (such as to protect trade secrets). Only the part of an NDA that stops someone reporting harassment or discrimination would be void; the rest would still apply, so business interests remain protected.
The Government notes that limiting NDAs could lead to more disputes ending up at Tribunal. However, where a worker voluntarily seeks a confidential settlement, this will remain an option.
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