Limits Non-Disclosure Agreements in Harassment, Violence, Discrimination

Summary#

This bill limits when the federal government and federally funded groups can use non-disclosure agreements (NDAs) in cases of harassment, violence, or discrimination. It mandates annual public reporting on the number and dollar value of agreements that include NDAs. It also bars the use of public money to enforce NDAs against complainants and sets rules so NDAs are only used when the complainant asks for one after getting independent legal advice. A parliamentary review must occur every two years after the law takes effect.

• Requires an annual report listing the number of NDAs and total dollars of agreements that include NDAs across federal entities and federally funded recipients (Annual Report, ss. (1)-(4); FAA s.25.1(2)).
• Prohibits using public money to pay settlements with NDAs in covered cases or to litigate NDAs against complainants (FAA s.25.1(1); s.40.01(3)).
• Allows NDAs only if the complainant requests one in writing after the chance to get independent legal advice, with clear exceptions for certain disclosures (FAA s.40.01(1)-(2)).
• Extends the same rules to the Senate, House of Commons, Library of Parliament, and Parliamentary Protective Service (Parliament of Canada Act ss.19.2(3)-(4), 52.2(3)-(4), 75(2.1)-(2.2), 79.53(4)-(5)).
• Applies to NDAs entered after the law comes into force; starts 60 days after Royal Assent (Coming into Force; FAA s.25.1(4)).

What it means for you#

• Federal employees and contractors

  • You cannot be required to accept an NDA in a settlement over harassment, violence, or discrimination unless you ask for it in writing after having the chance to get independent legal advice (FAA s.40.01(1)). Effective 60 days after Royal Assent.
  • Even if you sign an NDA, you can still talk to law enforcement, a lawyer, health and mental health providers, social workers, victim services, community elders/spiritual counsellors, and personal supporters; you can also engage in certain artistic expression that does not identify people or terms (FAA s.40.01(2)).
  • Federal bodies cannot use public money to sue you for speaking about your experience under an NDA (FAA s.40.01(3)).

• Complainants (people alleging harassment, violence, or discrimination)

  • “Complainant” means any person who alleges harassment, violence, or discrimination (FAA s.25.1(4)). NDAs (a clause that bars sharing certain information) can be used only if you specifically request one after independent legal advice (FAA s.25.1(4); s.40.01(1)).
  • Older NDAs signed before the law takes effect are not covered by these new limits (FAA s.25.1(4)).

• Federal departments, Crown corporations, and parliamentary entities

  • You may not enter into an NDA in covered cases unless the complainant requests it after independent legal advice; you may not spend public money to enforce NDAs against complainants (FAA s.40.01(1),(3); Parliament of Canada Act ss.19.2(3), 52.2(3), 75(2.1), 79.53(4)).
  • You must provide data, even if it is otherwise privileged, for the annual public report; data must be anonymized (Annual Report, ss. (1),(4)-(6)).
  • The President of the Treasury Board must table an annual report within 45 days after each fiscal year on numbers of NDAs and total dollars of agreements containing NDAs; the President must certify data accuracy (Annual Report, ss. (1)-(3)).

• Grant- and contribution-funded organizations (non-government)

  • Federal authorities must structure grants and contributions to prevent public money from being used to pay settlements that include NDAs in covered cases or to litigate NDAs against complainants (FAA s.25.1(1)).
  • Your federal funding agreements must require you to report annually the number of NDAs and the total dollar value of agreements that include NDAs; data must be anonymized (FAA s.25.1(2)-(3)).
  • You can still settle cases without an NDA using federal funds. If you want an NDA, you cannot use federal money for that settlement component (FAA s.25.1(1)).

• Taxpayers and the public

  • You will see annual totals of NDAs and dollar amounts of agreements containing NDAs across the federal public sector and federally funded recipients, without names or identifying details (Annual Report, ss. (1)-(4)).

Expenses#

Estimated net cost: Data unavailable.

• No direct appropriations, new taxes, or fees appear in the bill text.
• New administrative duties include data collection, certification, tabling an annual report, and grant agreement reporting requirements (Annual Report, ss. (1)-(3); FAA s.25.1(2)).
• Compliance and monitoring efforts to ensure grants/contributions are structured to prevent use of public money for covered NDAs or NDA litigation (FAA s.25.1(1)).

Item | Amount | Frequency | Source Annual NDA reporting by President of the Treasury Board | Data unavailable | Annual | Annual Report, ss. (1)-(3) Data submission by federal entities and funded recipients | Data unavailable | Annual | Annual Report, ss. (1)-(2); FAA s.25.1(2)-(3) Policy updates and grant compliance oversight | Data unavailable | Ongoing | FAA s.25.1(1) Enforcement of prohibition on litigating NDAs with public money | Data unavailable | Ongoing | FAA s.40.01(3); Parliament of Canada Act ss.19.2(3), 52.2(3), 75(2.1), 79.53(4)

Proponents' View#

• Increases transparency by requiring a yearly public count of NDAs and total dollars of agreements that include NDAs across federal bodies and funded recipients (Annual Report, ss. (1)-(2)).
• Prevents use of public money to silence complainants through NDAs or to enforce NDAs against them, aligning spending with public interest (FAA s.25.1(1); s.40.01(3)).
• Protects complainants’ ability to seek help and report to authorities by carving out permitted disclosures, even when an NDA exists (FAA s.40.01(2)).
• Respects complainant choice by allowing NDAs only when requested after independent legal advice, reducing coercion risk (FAA s.40.01(1)).
• Extends rules to Parliament’s own institutions, avoiding gaps in coverage (Parliament of Canada Act ss.19.2(3)-(4), 52.2(3)-(4), 75(2.1)-(2.2), 79.53(4)-(5)).
• Builds accountability through a mandatory biennial parliamentary review to assess how the law works and make adjustments (Parliamentary Review).

Opponents' View#

• Administrative burden: collecting, certifying, and tabling annual NDA data; updating grant terms; and monitoring compliance may increase workload and costs for departments and recipients (Annual Report, ss. (1)-(3); FAA s.25.1(1)-(3)). Data on costs is unavailable.
• Legal and confidentiality concerns: the requirement to provide information even if privileged, with a limited waiver of parliamentary privilege for reporting, could create disputes over scope and process (Annual Report, ss. (5)-(6)).
• Settlement impacts: limiting the use of NDAs when public money is involved may reduce willingness to settle or change settlement terms and timelines; effects are uncertain (FAA s.25.1(1); s.40.01(1)).
• Mixed funding complexity: recipients using both federal and non-federal funds may face complex accounting to ensure no federal money supports settlements that include NDAs (FAA s.25.1(1)).
• Enforcement clarity: the bill sets prohibitions but does not specify penalties or detailed enforcement mechanisms in the text provided; effectiveness may depend on Treasury Board policies and audits (FAA s.25.1; s.40.01).