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FOI - Non-disclosure clauses in employment disputes [Jun 2022]

Key information

Request reference number: MGLA250522-1759

Date of response:

Summary of request

Your request

1. Has GLA included non-disclosure clauses in agreements signed at the conclusion of employment disputes?

2. In the past 7 years, how many non-disclosure agreements have been signed in the circumstances described in point 1. I would appreciate this information being broken down by year and team/department and directorate.

3. When settling employment disputes and signing non-disclosure agreements, have settlement payments been made to employees as a result of these agreements?

4. In the past 7 years, how much money has been spent on settlement payments which formed part of non-disclosure agreements? I would like this information broken down by year and team/department and directorate.

5. Does GLA have any policy or guidance about the circumstances in which non-disclosure can be included in settlement agreements signed at the end of employment?

For the purposes of this FOI a non-disclosure clause is a clause in the contract which as a minimum forbids the employee from discussing the events leading to termination their employment.

Non-disclosure contract is a contract which contains non-disclosure clause.

Our response

Background

The GLA does not require employees to enter into stand-alone non-disclosure agreements (NDAs) when leaving, i.e. an agreement where the sole purpose is to prevent an individual from making disclosures. The only arrangements relating to disclosure are when additional terms are agreed as part of a settlement agreement.

The Authority is committed to ensuring the continued employment of all employees wherever possible. There are, however, circumstances where employment is terminated on the grounds of redundancy or in the interests of the efficiency of the service, leading to a settlement agreement.

The GLA’s settlement agreements include a clause to prevent the disclosure of its terms. This is to protect the financial information, personal data and details of any employment-related issue that may have given rise to the agreement. It expressly states that employees are not prevented from disclosing details to their professional adviser, spouse or partner, or from making protected disclosures (“whistleblowing”).

The use of confidentiality agreements in settlement agreements is a standard practice among public and private sector companies.

The Authority has not entered into any standalone NDAs during the period about which you have requested information and the data below relates to settlement agreements entered into during that period.

Please find our responses to questions 1-5 in turn below

1. Has GLA included non-disclosure clauses in agreements signed at the conclusion of employment disputes?

As stated above, The GLA’s settlement agreements include a clause to prevent the disclosure of its terms. This is to protect the financial information, personal data and details of any employment-related issue that may have given rise to the agreement. It expressly states that employees are not prevented from disclosing details to their professional adviser, spouse or partner, or from making protected disclosures (“whistleblowing”).

2. In the past 7 years, how many non-disclosure agreements have been signed in the circumstances described in point 1? I would appreciate this information being broken down by year and team/department and directorate.

We are unable to provide information that may identify individuals or amounts paid to individuals (see exempt information below). Where numbers fall below 10 per year, we have amalgamated the figures.

The number of settlement payments relating to employment disputes are:
1 January 2015 to 31 December 2019 = 14
1 January 2015 to 31 December 2021 = 10

3. When settling employment disputes and signing non-disclosure agreements, have settlement payments been made to employees as a result of these agreements?

As stated above, the GLA does not require employees to enter into stand-alone non-disclosure agreements. However, payments have been made as part of settlement agreements.

4. In the past 7 years, how much money has been spent on settlement payments which formed part of non-disclosure agreements? I would like this information broken down by year and team/department and directorate.

We are unable to provide information that may identify individuals or amounts paid to individuals. Where the numbers of settlement payments falls below 10 per year, we have amalgamated the figures.

The amount paid for all settlement agreements, regardless of whether they have been as a result of an employment dispute is shown in the table below:

Calendar year Number of settlement agreements Total payments
2015 & 2016 25 £433,429.97
2017 & 2018 22 £511,404.90
2019 & 2020 17 £329,267.70
2021 19 £228,084.80

5. Does GLA have any policy or guidance about the circumstances in which non-disclosure can be included in settlement agreements signed at the end of employment?

The GLA does not have any policy or guidance about the circumstances in which non-disclosure clauses are included in settlement agreements, as the GLA’s standard settlement agreement contains the non-disclosure clause relating to non-disclosure of the settlement terms.

The only arrangements relating to disclosure are when additional terms are agreed as part of a settlement agreement and these are agreed on a case-by-case basis.

Exempt information

Personal data is defined by Article 4(1) of the General Data Protection Regulation (GDPR) to mean any information relating to an identified or identifiable living individual and is exempt from disclosure under s.40 (Personal information) of the Freedom of Information Act.

It is considered that disclosure of this information would contravene the first data protection principle under Article 5(1) of GDPR which states that Personal data must be processed lawfully, fairly and in a transparent manner in relation to the data subject.

We are unable to provide information that may identify individuals or amounts paid to individuals.

Where numbers fall below 10 per year, we have amalgamated the figures.

If you have any further questions relating to this matter, please contact me, quoting the reference MGLA250522-1759.

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