Law update

UK NDA Law Changes 2026: The Government Consultation Explained

The UK government's April 2026 consultation proposes new restrictions on NDAs in harassment and discrimination cases. This guide explains what is changing, what 'excepted agreements' mean, what businesses must do before the consultation closes on 8 July 2026, and what is not affected.

By Richard Wood, Founder9 min readUpdated 9 June 2026Last reviewed 9 June 2026UK lawNDA basicsenforceabilityemployment

UK non-disclosure agreement law is undergoing its most significant change in a generation. Two pieces of legislation — the Victims and Prisoners Act 2024 and the Employment Rights Act 2025 — have placed new limits on what NDAs can lawfully do. In April 2026, the government opened a formal consultation on the regulations that will implement those limits. This guide explains what is changing, what is not, and what businesses should do before the consultation closes.

This is general information, not legal advice

NDASafe is a document preparation service, not a law firm. Our templates are legally reviewed against applicable UK law at the point of release, but every situation is different. Where significant value, unusual risk or a cross-border element is involved, take independent legal advice before you sign.

Background: why NDA law is changing

Non-disclosure agreements have faced sustained public and parliamentary scrutiny since the Harvey Weinstein disclosures of 2017 drew attention to their use as tools to silence victims of workplace harassment. The Women and Equalities Select Committee recommended reform. The #MeToo movement amplified the call. Successive governments committed to action.

Two statutes now underpin the changes:

  • Victims and Prisoners Act 2024 — In force from 1 October 2025. NDAs signed after that date cannot prevent a victim of a criminal offence from disclosing to law enforcement, qualified lawyers, regulators, registered support services or regulated professionals. Any clause purporting to do so is void.
  • Employment Rights Act 2025, section 202A — Makes void any NDA clause that prevents a worker from disclosing information about 'relevant harassment or discrimination' — where the conduct was carried out by the employer or another worker, or where the worker themselves was the victim. Expected in force 2027, subject to commencement regulations.

The April 2026 consultation: what is being proposed

On 15 April 2026, the government published a consultation paper setting out the proposed detail of the s.202A regulations. The consultation closes on 8 July 2026. Three main areas are covered.

AreaProposalWhy it matters
Excepted agreementsNDAs may still cover harassment / discrimination if: the worker receives independent legal advice in writing; the agreement relates only to past (not future) conduct; a 14-day cooling-off period follows signingDefines the narrow circumstances in which a confidentiality clause relating to conduct can still be valid
Permitted disclosuresEven a valid excepted agreement cannot block disclosure to: lawyers, regulators, police, trade unions, MPs, medical professionals, close family, victim support servicesWorkers retain a floor of protected disclosure rights regardless of what any NDA says
Scope of workers coveredThe government is consulting on whether to extend beyond 'workers' (the current ERA definition) to agency workers, secondees, trainees, and certain self-employed personsCould significantly widen the range of individuals protected

What 'excepted agreements' means in practice

An 'excepted agreement' is the narrow category of NDA that can lawfully include a confidentiality clause covering harassment or discrimination — provided it meets all the proposed conditions. Think of it as the route map for a legally compliant settlement NDA.

To qualify as an excepted agreement, the proposed rules require all of the following:

  1. The worker must receive independent legal advice before signing — advice given in writing, explaining the agreement's terms, its effect, and its legal limitations.
  2. The agreement can only relate to past conduct — harassment or discrimination that has already occurred (or is alleged to have occurred). NDAs cannot be used pre-emptively to silence workers about future misconduct.
  3. A 14-day cooling-off period must follow signing, during which the worker can withdraw without penalty.
  4. The agreement must not prevent permitted disclosures — the worker must always be free to speak to lawyers, regulators, trade unions, close family, and support services.
Settlement agreements already in use

Section 203 of the Employment Rights Act 1996 already requires workers to take independent legal advice before a settlement agreement is binding. The new conditions add to that existing framework — they do not replace it. A settlement agreement that complied with s.203 but fails to meet the new cooling-off and advice requirements will not qualify as an excepted agreement once regulations commence.

Permitted disclosures: the floor no NDA can remove

Even within a valid excepted agreement, the consultation proposes that workers must always be able to disclose information about harassment or discrimination to:

  • A qualified legal adviser (whether or not instructed for the dispute)
  • A regulator (the FCA, ICO, HSE, SRA, and equivalent sector regulators)
  • A police officer or other law enforcement authority
  • A trade union representative
  • A member of Parliament
  • A medical professional (doctor, therapist, occupational health adviser)
  • Close family members
  • An organisation providing support services to victims of harassment or discrimination

Any NDA clause that purports to prevent these disclosures is void — even if the agreement otherwise meets the excepted-agreement conditions. In practice, drafting an NDA without these carve-outs is a red flag in itself.

What is not changing: commercial NDAs are unaffected

The Employment Rights Act 2025 provisions and the April 2026 consultation apply only to NDAs used in a worker relationship where the confidentiality clause attempts to cover workplace harassment, bullying or discrimination. They have no effect on:

  • Trade secret and IP protection — confidentiality of product formulas, source code, proprietary processes
  • Financial and commercial information — pricing, client lists, financial projections, M&A deal terms
  • Business-to-business NDAs — mutual NDAs between two companies with no employment dimension
  • Investor and startup NDAs — pitch confidentiality, investment terms, deal pipeline
  • Recruitment NDAs — protecting information disclosed during a hiring process
  • Property and development NDAs — off-market sale information, planning strategy, due diligence

If your NDA protects commercial information between commercial parties, the 2026 consultation is not relevant to it. If your NDA is an employment or settlement agreement that includes a clause about conduct — that is where the new rules bite.

Timeline

DateEvent
1 October 2025Victims and Prisoners Act 2024 NDA provisions in force — criminal-victim disclosures cannot be blocked
6 April 2026Sexual harassment becomes a 'qualifying disclosure' under UK whistleblowing law (PIDA 1998 amended)
15 April 2026Government publishes consultation on NDA regulations under s.202A ERA 2025
8 July 2026Consultation closes
2027 (TBC)Section 202A commencement regulations expected in force — not retrospective

What HR and employment teams should do now

  1. Audit existing employment NDAs and settlement agreements — identify any clause that could be read as preventing disclosure of harassment, bullying or discrimination.
  2. Separate commercial and conduct clauses — do not bundle trade-secret protection and non-disparagement into a single blanket obligation. They serve different legal functions and must be able to survive independently.
  3. Include current statutory carve-outs in every new NDA — PIDA 1998 (whistleblowing), Victims and Prisoners Act 2024 (criminal-victim reporting), and the ERA 2025 harassment / discrimination provision (even pre-commencement, courts may apply it purposively).
  4. Take independent legal advice before using an NDA in connection with any conduct complaint — a generic template is not sufficient for a settlement agreement involving harassment or discrimination allegations.
  5. Consider responding to the consultation before 8 July 2026, particularly if your business regularly uses NDAs in settlement contexts.

What this means for NDASafe templates

NDASafe's Employee NDA and Freelancer NDA already include [mandatory] carve-outs for whistleblowing (PIDA 1998), regulator cooperation, crime reporting, harassment reporting, and the Victims and Prisoners Act 2024. These cannot be removed — they are marked [mandatory] in the template and a note explains why.

The ERA 2025 s.202A carve-out will be incorporated into the Employee NDA as commencement regulations are finalised and the operational detail is confirmed. Templates are updated at no extra cost — customers who have already purchased can re-download the latest version at any time.

The commercial NDAs — Mutual NDA, One-Way NDAs, and Investor NDA — are not affected by the conduct-related reforms because they are not employment agreements.

NDASafe Employee NDA — built for compliance

The NDASafe Employee NDA includes [mandatory] carve-outs for whistleblowing, regulator cooperation, crime and harassment reporting, and a Victims and Prisoners Act 2024 carve-out. Templates are updated as legislation takes effect and re-downloadable at no extra cost. £29 single or £79 for all eight variants.

Step by step

  1. 1
    Audit existing employment NDAs for non-compliant clauses

    Review any employment contract, settlement agreement or standalone NDA that includes a non-disparagement, non-disclosure or confidentiality clause. Identify provisions that could be read as preventing disclosure of harassment, bullying or discrimination. These clauses will become void under s.202A once regulations commence — and attempting to enforce them could carry regulatory risk.

  2. 2
    Separate commercial confidentiality from conduct clauses

    Business-critical confidentiality (trade secrets, IP, financials, client lists) and conduct-related clauses (non-disparagement, disclosure of workplace complaints) serve different functions. Bundling them risks the entire confidentiality provision being challenged. Keep commercial and conduct obligations in separate, clearly labelled clauses.

  3. 3
    Understand what permitted disclosures cannot be blocked

    Even under a lawful 'excepted agreement', workers will retain the right to speak to lawyers, regulators, trade union representatives, close family members, and support services. Draft any confidentiality clause with these carve-outs explicitly stated — an attempt to cover them is void and signals that the drafter has not understood the current law.

  4. 4
    For settlement agreements, ensure independent legal advice requirements are met

    Settlement agreements already require the worker to take independent legal advice for the agreement to be binding. The new proposals add further conditions: advice must be given in writing, must explain the agreement's terms, effect and legal limitations, and the 14-day cooling-off period must be honoured. Document compliance carefully.

  5. 5
    Respond to the consultation before 8 July 2026

    The government consultation closes on 8 July 2026. Employers, HR professionals and businesses that use employment NDAs regularly have an interest in responding — the outcome will determine the precise scope of the regulations, the cooling-off period, and which categories of workers are covered. Consult your employment lawyer or HR adviser about whether to submit a response.

Frequently asked questions

What is the UK NDA consultation 2026?

On 15 April 2026, the UK government opened a public consultation on proposed regulations that implement section 202A of the Employment Rights Act 2025. Section 202A renders void any NDA clause that prevents a worker disclosing information about workplace harassment, bullying or discrimination. The consultation — open until 8 July 2026 — asks how the regulations should define 'excepted agreements' (where a confidentiality provision can still apply) and which disclosures workers can always make. The rules are expected to take effect in 2027.

Will NDAs be banned in the UK?

No. NDAs are not being banned. The government's proposals are targeted: they make void only the specific clauses that try to prevent workers disclosing harassment, bullying or discrimination. Commercial NDAs protecting trade secrets, IP, financial information and business strategies are entirely unaffected. The consultation's stated aim is to stop the misuse of NDAs as gagging tools while preserving their legitimate commercial role.

What is an 'excepted agreement' under the Employment Rights Act 2025?

An 'excepted agreement' is a confidentiality arrangement that can lawfully cover harassment or discrimination disclosures — but only when it meets strict conditions proposed in the consultation. These include: the worker must receive written independent legal advice before signing; the agreement can only relate to harassment or discrimination that has already occurred (not future misconduct); a 14-day cooling-off period must follow signing; and even within an excepted agreement, a defined list of disclosures (to lawyers, regulators, close family, medical professionals) cannot be blocked.

What disclosures can a worker always make even under a valid NDA?

Under the proposed framework, even a fully compliant 'excepted agreement' cannot prevent a worker disclosing to: a qualified legal adviser, a regulator, a police officer or law enforcement authority, a trade union representative, a member of Parliament, a medical professional, close family members, or an organisation that provides support services to victims of harassment or discrimination. The consultation proposes these as 'permitted disclosures' that cannot be blocked by any NDA.

Do the 2026 NDA changes affect commercial NDAs?

No. The Employment Rights Act 2025 provisions and the consultation proposals apply only to NDAs used in an employment or worker relationship where the confidentiality clause attempts to cover up harassment, bullying or discrimination. Standard commercial NDAs — protecting trade secrets, client lists, pricing, IP, financial projections, M&A deal information — are entirely outside the scope of these changes.

When do the new NDA rules come into force?

The consultation closes on 8 July 2026. Draft regulations will follow — and are expected to take effect in 2027, though no firm date has been confirmed. The underlying section 202A of the Employment Rights Act 2025 is already on the statute book; it is the detailed implementing regulations that are being consulted on now. The changes will not apply retrospectively to NDAs already signed before commencement.

Templates mentioned in this guide