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12.17.20 | Settlement Agreement Gag Clause

The final proposals contained in the government`s response to its consultation on confidentiality clauses include that “gagging clauses” have proved controversial for a number of reasons, including: while a gag clause seems quite dramatic, the section in question is generally referred to as the “confidentiality clause” when reviewing a transaction contract. Generally, it prevents an employee from disclosing the facts and terms of the transaction contract to persons other than the family or the legal provisions. The clause may also lead to a debate about the circumstances of the termination itself. A paragraph thus formulated is one of the most common provisions in transaction agreements and, as a general rule, is not a cause for concern. Unlike NRAs, a transaction agreement is not financial. The SA will include an employer`s commitment to find a positive reference reference for the workplace and to meet the terms set out in the negotiated agreement. In fact, some AS only cover statutory terminations and contractual payments, such as vacation pay. Confidentiality clauses have become controversial in recent times, with some employers delaying them too far until they are too much of a gagging clause, as they have effectively concealed wrongdoing, criminal acts, negligence, incompetence, etc. In other words, the employer intended or was considered to have intended to prevent workers from disclosing such information if the disclosure was considered to be in the public interest. The Mid Staffordshire NHS Foundation Trust scandal is an example. it was found that many patients had died as a result of poor care. It has been suggested that this issue could have been uncovered much earlier if potential whistleblowers had not been prevented from expressing themselves through confidentiality clauses.

In response to this scandal, The Ministry of Health said: “The government has taken a number of steps to promote open dialogue, including amending the NHS Constitution, to anchor the fact that NHS organizations should support employees who express their concerns, ensure that these concerns are thoroughly investigated and ensure that there is someone who is independent outside their team to speak with them.