Non-disclosure agreements (NDAs) were once a rare topic of conversation, but since the #MeToo movement, they’ve become nearly ubiquitous.
They’re no longer just making headlines—I hear about them all the time in conversations. Just this week, during a casual chat at my son’s cricket game, I was told another disappointing story, followed by a significant eye roll. The reality is that NDAs have become so deeply embedded in corporate culture that if a woman hasn’t signed one herself, she likely knows someone who has.
Originally created to protect sensitive business information and intellectual property, NDAs have evolved into convenient shields for workplace misconduct that disproportionately impacts women. One woman aptly described them as “corporate confetti,” tossed at everything from sexual harassment and discrimination to bullying, all in an effort to quickly sweep a whole host of issues under the rug. While they may appear to be an easy fix for both companies and complainants, the silence they enforce comes at a significant cost.
Take Jenny*, a high performer with consistently glowing reviews. Everything changed when a senior leader began undermining her work and questioning her performance without cause. When she called it out as bullying, the company’s response was swift but dismissive: it’s her word against a big revenue-generator. The NDA came out. While the agreement included a modest financial settlement (and trust me, it’s nowhere near the millions some might assume), the ‘hush money’ wasn’t the real reason for signing. It was because it felt like the only option. Who wants to endure a drawn-out legal battle against a company with significantly deeper pockets?
Jenny, who was pregnant at the time, was given a hasty 24-hour deadline to sign on the dotted line. But the aftermath is what many don’t foresee—the emotional toll, which research suggests can hit as much as six months later. The NDA doesn’t just keep her quiet; it completely silences her. When she moves to a new job and is asked why she left her last role, she has no answer. If colleagues ask, she can’t explain or warn anyone. It’s no longer just about the legal gag order—it’s the psychological burden of feeling she can’t share her story. According to Pregnant Then Screwed, a UK-based campaign supporting mothers facing workplace discrimination or harassment, only one-quarter of women silenced by NDAs would sign one again under similar circumstances. Their research also found that three-quarters experienced a negative impact on their mental health.
To be clear, NDAs can serve a legitimate purpose when the complainant requests one. They may wish to keep the settlement confidential on their terms, to protect their reputation after seeking legal advice. But caution is warranted, as some lawyers can perpetuate the problem by advising women to sign them as the quickest solution. Selena* spent a significant amount on legal fees to explore her options, only to be told, ‘That’s what you’re paid the big bucks for.’ This legal advice further entrenches the imbalance of power, silencing victims and preventing meaningful change.
The damage extends beyond the immediate complainants to the witnesses left behind. Amy* saw a colleague disappear without explanation after reporting harassment. An eerie silence descended over the office—as if someone had died. She felt like there was this unspoken message that became clear: witness something, say nothing or you might be next.
These experiences aren’t isolated incidents; they reflect broader issues highlighted in the Respect@Work report by the Australian Human Rights Commission in 2020. The report documented the prevalence of sexual harassment, discrimination and bullying in Australian workplaces and recommended that NDAs should not be used to silence victims or cover up misconduct. The issue is that some employers still view NDAs as a tool to protect their reputation, but they do more harm than good. Rather than resolving issues, these agreements perpetuate toxic cultures, shield serial harassers and stifle transparency. Predators and bullies are given a free pass to repeat their behaviour at the same organisation or at a new one.
Allowing NDAs to persist in this way undermines the significant strides companies have made in advancing gender equality. What were once tools for protecting legitimate business interests have transformed into barriers to meaningful change and accountability.
Until we dismantle how these agreements are used to conceal misconduct, we can expect more women to quietly leave their positions—and perhaps even the industries they work in—more skilled professionals to disengage, and, yes, even more eye rolls.
*The names have been changed.