What is a non disclosure agreement, are the confidentiality agreements legally binding and what happens if they broken?

They are back in the headlines after a "leading businessman" in the UK was granted one to stop a newspaper revealing his identity amid claims of sexual harassment and racial abuse. Here's what you need to know about the legal procedure that was used to keep MeToo# allegations quiet.

What is a non-disclosure agreement?

A non-disclosure agreement is a legal agreement signed between two parties to share secret information or to keep trade secrets confidential.

They are mostly used in the business world, such as in mergers and acquisitions, where one company receives sensitive financial information about a business it wants buy up.

But more recently they have been used to hide people’s dirty little secrets.

Following the Financial Times' expose on the Presidents Club – which held a charity event where hostesses were allegedly groped – it was reported by the newspaper that female hosts were made to sign non-disclosure agreements.

Is the confidentiality agreement legally binding?

Non-disclosure agreements are legally binding.

It requires parties to keep confidentiality for a defined period of time.

It is up to the parties to decide what would be considered confidential and what is not.

What happens if it’s broken?

Yet once confidential information enters the public domain there is a question as to how an NDA could be enforced.

For instance if there is an agreement that is broken and the subject is of public interest and there a strong argument to suggest it should not be covered up it.

Therefore it would be hard to successfully take action.   

Non-disclosure agreements at the Presidents Club annual dinner

The young women recruited as hostesses and waitresses at the controversial Presidents Club dinner at the Dorchester were all required to sign non-disclosure agreements when they took on the jobs.

It has been alleged that the only way they could guarantee their £150 payment and a cab home was to sign the NDAs – an ominous sign.

These girls were all recruited for their looks and figures, and were compelled to wear short skirts and matching black knickers, while plied with alcohol.

They were also told not to hide in toilets which were going to be monitored by security guards.

The only warning these women received of the kind of behaviour they could expect was when they were told that some guests would be "annoying".

However on the night, waitresses were sexually harassed, molested, groped and left feeling like animals on display in a zoo.


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