Ireland: Restrictions on non-disclosure clauses in settlement agreements
What’s new?
New legislation in Ireland restricts “non-disclosure” clauses in settlement agreements concerning alleged workplace discrimination, victimisation, harassment, and sexual harassment. Such clauses will be null and void, unless they form part of an “excepted” agreement.
Excepted Agreements Criteria:
- Must be requested by the employee; and
- The employee must receive independent legal advice (at the expense of the employer).
Requirements for Excepted Agreements:
- In writing;
- Unlimited duration, unless the employee elects otherwise;
- Clear language and accessible format;
- A 14-day withdrawal period for the employee; and
- A clause which does not prohibit disclosures to specified groups or individuals, such as police or medical practitioners.
What does this mean for employers and what should they do now?
Employers must ensure settlement agreements do not prohibit applicable disclosures, unless they qualify as an “excepted” agreement. Employers should consider reviewing template settlement agreements given the changes. Given the potentially added complexity of reaching settlements, if you require any support, please get in touch with a member of the MDR ONE team.
