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S-232At second reading in the Senate

Law Would Limit Secret Settlements

Limits on Secret Settlements

Introduced Jun 12, 2025·Last discussed Feb 12, 2026
Summary

This proposed law, called "An Act respecting non-disclosure agreements," wants to change how confidentiality agreements (NDAs) work in Canada. NDAs are often used in workplaces to keep certain information secret. This proposed law focuses on NDAs that deal with workplace harassment and discrimination. It would make it easier for people who have experienced these issues to share their stories, even if they signed an NDA promising not to. This change would affect anyone who has signed or might sign an NDA related to workplace harassment or discrimination. This includes employees, employers, and organizations that deal with these issues. The proposed law aims to protect victims of harassment and discrimination. It would give them more power to speak out and seek support. It also aims to prevent future incidents by making it harder to hide harmful behavior behind NDAs. This matters because it could create more transparency and accountability in workplaces. It could help to break the cycle of silence around harassment and discrimination. By allowing people to share their experiences, the proposed law could lead to safer and more respectful work environments for everyone.

Where This Lands on Key Issues

Where this proposed law falls on the policy spectrums that Canadians care about

Business & Worker RulesPrioritize worker rights and unions

By limiting the use of NDAs in cases of workplace harassment and discrimination, the bill shifts the balance towards worker protection, allowing them to speak out about their experiences.

Identity & Human RightsExpand protections for marginalized groups

The bill promotes equity and inclusion by allowing individuals to discuss instances of workplace harassment and discrimination, which often disproportionately affect marginalized groups.

This bill
Bill Quality
Solid

This proposed law aims to limit the use of non-disclosure agreements (NDAs) in cases of harassment and discrimination involving public funds. It requires government entities and those receiving public money to report on NDAs and ensures complainants can get legal advice before signing them, but it doesn't ban NDAs outright.

Things to Watch For

  • The law only applies to federally funded entities, leaving out many private sector cases.
  • It depends on the Treasury Board to ensure accurate reporting, which could be a challenge.
  • The definition of 'harassment and violence' is broad; watch how it's interpreted.
  • The law allows NDAs if the complainant requests it, but are there enough safeguards to ensure this choice is truly voluntary?
  • The law does not address the power imbalance between parties when negotiating NDAs.
Progress

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