If you’ve been offered a settlement agreement, you may have noticed a clause saying you can’t talk about what’s happened at work. This is often referred to as an NDA, or Non-Disclosure Agreement. But what exactly does that mean — and should you be worried?
We’ll look at:
- What does NDA stand for?
- Whether NDAs are enforceable
- How NDAs link to settlement agreements
- What happens if you’re involved in whistleblowing
- And when you should seek legal advice
What Does NDA Stand For?
NDA stands for Non-Disclosure Agreement. It’s a legal clause or document that says you must keep certain information private. In the context of a settlement agreement, it usually means you agree not to talk about the dispute. This is in terms of your payout, or anything that might harm your employer’s reputation.
Simply put, if you sign an NDA as part of a settlement agreement, you agree to stay quiet about what happened and how it was resolved.
Do Settlement Agreements Usually Include an NDA?
Yes, most settlement agreements do include some form of NDA. It may not be labelled as an “NDA” but will appear as a confidentiality clause. This means:
- You won’t talk to colleagues, friends or the media about your case
- You can’t reveal the amount you were paid
- You agree not to speak negatively about your employer
Sometimes, these clauses are also called non-derogatory clauses, which prevent both you and your employer from saying anything bad about each other.
You might feel pressured to sign quickly, but it’s okay to pause and ask questions. Many people don’t know that these agreements can be negotiated. You’re not alone if you’re unsure.
Are NDAs Enforceable?
In most cases, yes, NDAs are enforceable if they’re properly worded and signed voluntarily with legal advice. If you break the terms of an NDA, your employer could take legal action to recover any money they paid you or claim damages.
However, there are some important limits to what an NDA can cover.
What If I’ve Witnessed or Reported Something Serious?
This is where whistleblowing law comes into play. An NDA cannot stop you from reporting illegal activity, health and safety risks, harassment or discrimination at work.
Under UK law, if you’re whistleblowing, that is, reporting wrongdoing in the public interest, your NDA does not override your right to speak up.
You can still:
- Report to a regulator
- Speak to a legal adviser or union
- Disclose issues to the police or court if required
So while NDAs are legally binding in most employment cases, they do not protect employers who are breaking the law.
What’s Changing in 2025?
In April 2025, the UK government debated new changes to the law around NDAs. These changes are part of the proposed Employment Rights Bill. They are aimed at making workplaces safer and more transparent.
The Proposed Changes:
- NDAs could be banned in cases of harassment, discrimination or abuse unless requested by the employee.
- The goal is to stop employers from using NDAs to silence victims and hide wrongdoing.
- The Solicitors Regulation Authority (SRA) has also reminded lawyers not to use NDAs to prevent people from making lawful disclosures.
What This Means for You:
If these changes go ahead, NDAs in settlement agreements may become more limited, especially in cases involving serious misconduct. You’ll still be able to sign one if you want privacy. However, your employer won’t be able to pressure you into staying silent about illegal or harmful behaviour.
These proposed reforms reflect a broader push to strengthen employee protections and promote fairness in the workplace.
Access to Legal Advice and Justice
We found that many people who go through workplace disputes struggle to get proper legal help with NDAs. Some people questioned how fair it is when the lawyer advising them is being paid by the employer. Others said they couldn’t access any legal advice at all.
One group, Can’t Buy My Silence, pointed out that in 2019/20, 32% of people who took their case to an Employment Tribunal had no legal representation. Another group, End Toxic Aid, said it’s common for workers in the aid sector to feel lost and unsupported during the settlement process.
This highlights the importance of ensuring access to independent legal support before signing any agreement.
Can I Negotiate the NDA Clause?
Yes, you absolutely can. Many people don’t realise that a settlement agreement is negotiable, including the NDA.
You can ask for:
- A mutual confidentiality clause, so your employer also agrees not to talk about you
- Permission to speak to future employers, your partner or a therapist
- A clear written reference to protect your reputation
A solicitor can help make sure the NDA is fair and doesn’t stop you from moving forward with your career or speaking to people who matter.
When Should I Get Legal Advice?
You should get legal advice before you sign anything.
Settlement agreements can waive important rights and include legally binding NDAs. By law, you must get independent legal advice before signing, and your employer usually pays for it.
A solicitor will:
- Explain what the NDA covers
- Check if it’s too broad or unfair
- Make sure it doesn’t breach whistleblowing protections
- Negotiate better terms if needed
Key Takeaways
- What does NDA stand for? Non-Disclosure Agreement — a clause that keeps information private.
- Most settlement agreements include NDAs, usually written as confidentiality clauses.
- NDAs are enforceable, but they can’t stop you from whistleblowing.
- New UK laws in 2025 aim to limit NDAs in serious cases like harassment or discrimination.
- Always seek independent legal advice before signing.
Need Help with an NDA in a Settlement Agreement?
Our specialist settlement agreement lawyers are here to help. We can review your NDA clause, explain your rights in plain English and negotiate a better deal where needed.
We offer:
- Free consultations
- Fast turnaround times
- Advice that’s clear, friendly and focused on you
As employment lawyers, we’ve helped hundreds of people in your position, and every case is different. Our goal is always to make sure you leave with peace of mind and a fair outcome.
Contact us today to speak with an employment solicitor and protect your future.
With over 10 years of experience in employment law matters, David Philip Harris specialises in providing legal advice on settlement agreements to both employees and employers throughout the UK. David’s opinion and advice are frequently sought after as he contributes often to BBC Radio Berkshire and the People Management Magazine. David Is a long-standing member of The Employment Lawyers Association and The Law Society.
