NDAs at the end of employment are common — but not compulsory. Understanding what they can and cannot cover protects you from signing away rights you did not intend to lose.
When NDAs Are Used at Job Departure
| Context | Typical NDA purpose |
|---|---|
| Settlement agreement | Confidentiality of settlement terms and circumstances |
| Compromise of disputed claims | Prevent public disclosure of claims |
| High-value employees | Protection of commercially sensitive information |
| Discrimination or harassment settlement | Increasingly regulated; whistleblowing carve-outs required |
What an NDA Cannot Prevent
By law, an NDA cannot stop you from:
- Reporting a crime to the police
- Making a protected disclosure (whistleblowing) to a prescribed regulator
- Reporting to the EHRC (Equality and Human Rights Commission) or another regulator, where this qualifies as a protected disclosure
- Making a personal injury claim you were not aware of when you signed
- Seeking legal advice about the NDA itself
- Telling your solicitor or (under some interpretations) close family about the situation
Clauses purporting to restrict these rights are void — they have no legal effect.
The Independent Legal Advice Requirement
For a settlement agreement (and any NDA within it) to be legally binding:
- You must receive independent legal advice from a qualified solicitor or adviser
- The adviser must confirm they have advised you on the terms and effect of the agreement
- The adviser must be identified and sign a certificate within the agreement
This means you always have a professional reviewing the NDA before it becomes binding — do not rush this process.
Negotiating NDA Terms
Key points to negotiate:
- Carve-outs: ensure you can discuss with close family, GP, and mental health professionals
- Duration: NDAs should be time-limited where possible
- Scope: narrow confidentiality to specific information, not everything about your employment
- Agreed reference: request a specific form of words the employer will use as a reference
- Non-disparagement: ensure any such clause applies equally to both parties
What NDAs Cannot Legally Do in the UK
Under current whistleblowing law (the Public Interest Disclosure Act 1998, now part of the Employment Rights Act 1996) and EHRC guidance, NDAs in employment cannot:
- Prevent you from reporting a crime to the police or a law enforcement authority
- Prevent you from making a protected disclosure (whistleblowing) that qualifies under the Public Interest Disclosure Act 1998
- Stop you from seeking legal advice about the NDA itself (your solicitor is not bound by it)
- Prevent you from discussing the matter with a mental health professional, under most interpretations
An NDA that attempts to suppress any of the above is void to that extent — you cannot sign away these protections even if you try to.
A further, broader ban is coming but is not yet in force. The Employment Rights Act 2025 will make void any NDA clause that stops a worker discussing or disclosing a harassment or discrimination allegation more generally (not just to a regulator) — but this specific provision is still subject to government consultation and is expected to be implemented during 2027, not September 2026. Don’t assume this wider protection already applies; check gov.uk or ACAS for the current implementation status.
Before signing any NDA as part of a settlement:
- There is no statutory minimum amount an employer must contribute to your independent legal costs — this is a matter of negotiation, not law. In practice, employers typically contribute in the range of £500–£1,000+VAT (sometimes more for complex cases), because without some contribution most employees would not get the advice needed to make the agreement binding
- You must receive independent legal advice for the NDA (as part of a settlement agreement) to be legally valid
- Ensure you understand exactly what you are and are not permitted to discuss