There have been long-standing concerns about the use of Non-disclosure agreements (NDAs), particularly relating to sexual harassment allegations. Those concerns have grown with the momentum of the MeToo movement.
The use of NDAs stands at a critical crossroads. Imminent and future legal reforms are poised to fundamentally alter their scope and enforceability in the context of discrimination and harassment.
NDAs have historically been used as a crucial way of maintaining corporate confidentiality and protecting intellectual property and trade secrets. They are routinely used throughout the entire employment lifecycle, from hiring through ongoing employment and extending to an employee’s exit. Nonetheless, substantial legislative changes are set to limit their scope significantly.
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