The proposed new clause 22A in the Employment Rights Bill is designed to render void any provision in a contract between an employer and a worker, including a settlement agreement, that attempts to prevent the worker from making allegations or disclosures about harassment or discrimination. The proposal has generated strong views, both in favour and against.
The government has now published its impact assessment into the economic and other costs of enacting this ban.
It concludes that “…the non-monetised benefits arising from both reduced harassment and discrimination, and from individuals being able to disclose allegations of wrongdoing, are likely to exceed the costs faced by businesses from implementing the policy.” It adds (in paras. 65-67), without putting a figure on it, that it will increase costs for ACAS and the employment tribunal service due to increases in claims, due to employers being less willing to settle claims.
It will be interesting to see what this does to the policy, if anything, so watch this space!