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The Law Society has published guidance confirming that solicitors involved in drafting ‘non-disclosure agreements’ (“NDAs”) within employment settlement agreements (also known as ‘severance agreements’) must take into account the public interest if there is a conflict of principles.

The new guidance entitled “Non-disclosure Agreements and Confidentiality Clauses in an Employment Context” confirms that when drafting settlement agreements solicitors should, when taking instructions from clients and drafting the agreements, consider wider public policy issues of public interest if the agreement intends to prevent an employee from disclosing sensitive information (such as, for example, allegations of sexual harassment).

The publication of the guidance follows the controversy that emerged last year regarding firms of solicitors drafting settlement agreements that prevented the relevant employee from disclosing to third parties that they had been sexually harassed at work. It follows on from SRA guidance published last year warning solicitors about potential breaches of the SRA Code of Conduct that could result from failing to suitably take into account the public interest when drafting settlement agreements.

The Law Society’s guidance reminds solicitors that, when drafting settlement agreements, whether for the firm or for a client, they should consider whether any confidentiality clauses in the agreement are ‘appropriate and lawful’ clauses seeking to protect trade secrets or prevent the details of a dispute being made public or, alternatively, whether it seeks to prevent the employee from disclosing an ‘unlawful act’.

The guidance also confirms that “‘It is unlikely to be legitimate to ask a person to sign a [settlement agreement] in which they agree not to disclose an unlawful act that has not yet happened, as the chances of such an agreement being legally enforceable are slim.”

What is a settlement agreement? Our solicitors explain.

Chris Hadrill, the partner in the employment department at Redmans, commented on the guidance: “Confidentiality clauses in settlement agreements serve an important purpose, in that they essentially ‘put a lid’ on the facts and circumstances of a potential or existing dispute between an employer and an employer. Although this guidance is welcome, the Employment Rights Act 1996 already prevents employers from seeking to ‘gag’ employees from disclosing certain types of behaviour in the workplace to the authorities, to their lawyer, or direct to the employer.”

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

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Testimonials

4.76 Average

117 Reviews

Anonymous

I am very lucky that I worked with Mr. Chris Hadrill and he managed my case very progressively with an analytical approach and trustfully. Of course with a very positive result. I strongly recommend Mr. Hadrill to any one seeking for a successful result from a highly qualified solicitor.

Posted 4 days ago

Kulbir S

Amazing, quick friendly service from Chris from the start and Caroline. They made me feel at ease during a difficult time, they understood and advised accordingly and I am really happy with the outcome of my case. Will always advise anyone who needs legal advice to contact Redmans, I’m so glad that I did and can confidently say I don’t think any other firm could have handled my case any better. Well done guys, wish you all the best and please keep doing what your doing, simply the best!

Posted 5 days ago

Mark A

Excellent service - rapid and “to the point” advice given to ensure meeting the target time frame

Posted 5 days ago

Anonymous

Chris Hadrill kept me sane during the negotiations with my employer. He was courteous professional and he cared about doing the best he could for me. I will use Redmans again if ever I need an employment solicitor. Excellent service.

Posted 5 days ago

Muhammad Z

Awesome services. Professionals at their best .

Posted 5 days ago

Anonymous

Thanks for the advice and for negotiating a good outcome. Good to have the support at a very stressful time

Posted 5 days ago

Chloe F

My solicitor at Redmans was very helpful and efficient. Really pleased with the smooth service.

Posted 2 weeks ago

Anonymous

Chris was absolutely excellent. Clear and concise, offering sound advice.

Posted 3 weeks ago

Tim O

Experienced and competent advisors

Posted 3 weeks ago

Rachel A

Quick and expert assistance. I would highly recommend Chris for any of your legal needs.

Posted 3 weeks ago

Joe S

I was very happy with the service provided by Chris and the team at Redmans Solicitors. I felt very comfortable discussing all matters with Chris and am very grateful for all the help and guidance I was given throughout the whole process. I would definitely recommend Redmans Solicitors to friends and family!

Posted 3 weeks ago

Anonymous

I had a very good experience working with Chris Hadrill during a difficult and emotional time. This held true from the moment I spoke to him on the phone, to the end of the process. Overall, he was attentive, professional and highly supportive. He provided sound advice and clarity. It was the reviews that led me to Redmans! I was very happy to know they were all true. I highly recommend working with Redmans Solicitors. Thank-you to the entire team!

Posted 4 weeks ago

Anonymous

Good service

Posted 4 weeks ago

Anonymous

Excellent professional service. Highly recommend.

Posted 4 weeks ago

Rob O

Very prompt response and I could not fault the service. My solicitor listened carefully to the details of my case and I felt very confident in the advice I was offered. All emails and work done on my behalf with my former employer was of the highest standard and Redmans helped take a lot of the stress out of the situation for me.

Posted 1 month ago

Mike H

Very professional, friendly, proactive. I would highly recommend Redmans.

Posted 1 month ago

Anonymous

Fantastic and quick service!

Posted 1 month ago

Anonymous

I was very satisfied with Redmans' service. Clear, sensible advice and the bill was in line with their estimate. I would recommend them.

Posted 1 month ago

Eugene A

Excellent communication and guidance provided on the redundancy settlement process. Process was concluded quickly, very satisfied with service.

Posted 1 month ago

Harold d

Great personlised service and quick communication. Solicitor helps greatly in understanding the options and advising best course of action.

Posted 1 month ago

Trish B

Professional and efficient. A pleasure to deal with.

Posted 1 month ago