Last week the Victorian Labor party announced it’s considering a ban on non-disclosure agreements (NDA’s) that could silence victims of workplace harassment. Victorian Premier Jacinta Allen said NDAs were being misused, overwhelmingly against women, and announced a four-week consultation process with victims, unions, and the legal profession on proposed laws to ban NDA’s. She said potential reforms could include:
- Banning NDA’s (unless requested by the complainant)
- Permitting disclosures to certain people including lawyers or medical professionals
- Cooling off periods
- The right for a complainant to waive their own confidentiality in the future
Other state governments have signaled cautious support for Victorian Labor’s plans while many business groups have warned against a blanket ban saying such proposals should be led by the federal government. Employment lawyers have also warned that the proposed bans could backfire on victims, lead to more lengthy and expensive court cases, and can actually offer benefits to victims by providing options for workers. Some of those options include; protecting confidentiality and privacy, help to provide much-needed closure and avoiding lengthy litigation.
Check out the recent article from the Australian Financial Review for further information here.
High-Profile Workplace Disputes and NDA’s
There have been a number of high-profile workplace disputes highlighting the use of NDA’s. Last week Channel 7 found themselves embroiled in a Four Corners investigation after the team shared they had spoken to more than 200 people regarding multiple legal complaints against Channel 7, including current staff who have spoken out because they believe there is a desperate need for change at both Seven and in the broader commercial television industry.
Legal complaints currently lodged with the network allege sexual discrimination, breaches of workplace laws and disability discrimination. There are three with the Sydney news division alone.
Many former on and off-air staff who allege sexual harassment and bullying have been required to sign non-disclosure agreements (NDAs) that have silenced their right to tell their story.
To read more on this developing story, click here.
What is a Non-Disclosure Agreement?
A non-disclosure agreement is a legal contract between at least two parties who agree to not disclose information covered by the agreement. ⠀
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In business there are many situations where NDA’s can be used in order to protect and share confidential information with another party.⠀
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Some of these could be:⠀
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- Presenting an invention or business idea to a potential partner, investor or distributor.⠀
- Sharing financial, marketing and other information with a prospective buyer of your business.⠀
- Showing a new product or technology to prospective buyer or licensee.⠀
- Receiving services from a company or individual who may have access to some sensitive information in providing those services.⠀
- Allowing employees access to confidential and proprietary information of your business during the course of their job.⠀
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Have Other Countries Banned the Use of NDA’s in the Workplace?
Other countries have adopted or are considering placing similar bans on NDA’s used in the workplace including Canada, certain states in the U.S and the U.K.
Check out this article for more information here.
