Misuse of non-disclosure agreements

A non‑disclosure agreement (NDA) is a legal contract that requires one or more people to keep certain information private. NDAs are commonly used to protect trade secrets, intellectual property, and other sensitive information.

NDAs can also be used to prevent people from speaking publicly about allegations or incidents of sexual harassment, or harassment, discrimination, or abuse based on other protected grounds such as race or sexual orientation. The use of NDAs in these situations can be controversial.

Some people argue that NDAs should never be used in complaints over harassment, discrimination or abuse. They believe that NDAs should be banned or heavily restricted because they may not be voluntary and they prevent others from knowing about wrongful conduct.  Others caution that restricting NDAs might reduce the choice and control of survivors, by removing a tool that may help them secure compensation, achieve closure, and protect their privacy.

What we are exploring

Ministry staff have been monitoring developments on this issue, including reviewing laws and reform efforts across Canada and in other places. At present, Prince Edward Island is the only Canadian jurisdiction with standalone legislation that specifically addresses NDAs.

Staff are currently exploring both legislative and non‑legislative options aimed at:

• Improving public awareness of existing legal rights and remedies, including the fact that some existing NDAs may already be unenforceable, and
• Preventing the misuse of NDAs, while still allowing their use when a survivor makes an informed and voluntary decision to sign one.

How you can share your views

If you would like to share your views on this issue, please send an email to the Civil and Criminal Policy Division team at CCPLD@gov.bc.ca.