Britain to ban ‘gagging’ clauses used to silence harassment victims

In Britain, 40 percent of women and 18 percent of men experienced sexual harassment in the workplace. (Reuters)
Updated 22 July 2019

Britain to ban ‘gagging’ clauses used to silence harassment victims

  • Employees who sign NDAs are to be given independent legal advice under the legislation

LONDON: Britain will ban employees from using nondisclosure agreements (NDAs) that prevent victims of workplace harassment from speaking to police, lawyers and health care workers about their abuse.

Nondisclosure agreements (NDAs), also known as workplace “gagging clauses,” are often used in commercial transactions to protect company information and trade secrets.

But the deals were thrust into the spotlight by the sexual assault scandal that engulfed Hollywood director Harvey Weinstein in 2017. He used NDAs as part of settlements with alleged victims.

The proposed new laws, announced by Britain’s government on Sunday, will ban NDAs that stop people disclosing information to the police, doctors or lawyers.

Employees who sign NDAs are to be given independent legal advice under the legislation.

“As we have seen in the news recently, there are a handful of employers using NDAs to cover up criminal acts in the workplace, including sexual harassment, assault and racist discrimination,” said Kelly Tolhurst, Britain’s minister for small business.

“The new legislation will stamp out misuse, tackle unacceptable workplace cultures (and) protect individuals,” she said in a statement on Sunday.

Confidentiality agreements have come under increased scrutiny in Britain amid the global "Me Too" movement against sexual harassment and assault.

A British parliamentary committee launched an enquiry in November to examine whether NDAs should be banned or restricted, how easily victims can access legal aid, and if companies should be forced to report on types and numbers of NDAs used.

“The use of NDAs is only part of the problem of workplace harassment and discrimination, and employers must step up to protect their employees from this appalling behavior before it happens,” said Rebecca Hilsenrath, head of Britain’s Equality and Human Rights Commission.

In Britain, 40 percent of women and 18 percent of men experienced sexual harassment in the workplace, from catcalls to sexual assault, polling firm ComRes found in 2017.

United Nations agency The International Labour Organization in June adopted a new treaty against violence and harassment in the workplace.


No more spending excuses for Merkel as investment bottlenecks ease

German Chancellor Angela Merkel gestures at her arrival for the government’s ‘Open Door Day’ in Berlin on Sunday Sam sit fuga. Et laut ute odi cum as elit. (Reuters)
Updated 59 min 20 sec ago

No more spending excuses for Merkel as investment bottlenecks ease

  • German leader urged to boost public investment by taking on new debt Sunducim velessunt alis plabore sernatur

BERLIN: German Chancellor Angela Merkel has fended off growing calls for more fiscal stimulus by citing the slow outflow of existing federal funds — but data suggests the money is indeed being used up as local authority bottlenecks gradually clear. With Europe’s largest economy on the brink of recession and borrowing costs at record lows, Merkel has faced pressure at home and from abroad to ditch her pledge to target balanced budgets and instead boost public investment by taking on new debt.
Merkel and her conservatives say Berlin has already earmarked billions of euros in investment for schools, nurseries and hospitals but that local authorities have spent only a fraction of this windfall.
But this excuse seems no longer valid: Figures from the Finance Ministry show that towns and municipalities are now tapping the federal government’s funds more actively, suggesting that planning and labor bottlenecks are easing.
Of €3.5 billion ($3.9 billion) earmarked in a municipal infrastructure fund for investment in schools, nurseries and hospitals (KInvFG I), local authorities have applied for nearly €3.4 billion, the data showed — roughly 96 percent of the overall amount on offer.
The fund was created in 2015 and initially meant to last until 2018. Due to the slow initial take-up, it was then extended to 2020.
Of another €3.5 billion put aside by the government in 2017 for school renovations (KInvFG II), authorities so far have tapped €2.4 billion, or 69 percent.

HIGHLIGHTS

• German towns tap into federal funds more actively.

• Improved outflow raises pressure to provide more money.

• Coalition parties at odds over debt-financed stimulus.

“As you can see, the program is running very well,” a Finance Ministry spokeswoman said, adding that the take-up had jumped by nearly €2 billion over the past 12 months.
“The figures show that there is planning progress in most federal states and that financially weak municipalities welcome the financial aid from the federal government,” she added.
The improved flow of funds is important for Germany, where heavily indebted towns and municipalities historically manage a large chunk of public spending and many citizens are annoyed by run-down local infrastructure and closed public facilities.

Austerity
Years of austerity linked to the national debt brake — a constitutional amendment introduced in the wake of the global financial crisis of 2008/09 to rein in public debt — have led to pent-up public investment needs in towns and municipalities worth a combined €138 billion, data from KfW Research shows.
“Towns and municipalities have been structurally underfunded for more than 20 years. They were forced to cut staff,” Gerd Landsberg, managing director of the German Association of Towns and Municipalities, told Reuters.
“That partly explains the initial problems with the slow take-up of federal funds — it takes time to hire new staff and get the ball rolling,” Landsberg explained.
The latest figures show, however, that authorities are overcoming those staff-related planning bottlenecks, meaning most of the money should be used up soon, he said.
Landsberg called on the government to provide more funding lines and improve the design of its programs.
“Short-term investment funds alone do not provide sufficient planning and personnel security. We must secure the financial strength of towns and municipalities in the long term.”
Like Merkel and her conservatives, Finance Minister Olaf Scholz of the jointly governing, center-left Social Democrats (SPD) has shown little appetite so far to ditch the balanced budget goal and boost investments through new debt.
Eckhardt Rehberg, the chief budget lawmaker in Merkel’s conservatives, is also sticking to the line that billions of euros still sit unused in various special-purpose funds.
“The debate about debt-financed investment programs misses the point. The problem is not a lack of money, but the sluggish outflow of funds,” Rehberg said.
Authorities must hire more staff, cut red tape and speed up planning and approval procedures, he said. “In addition, the construction sector has already reached its capacity limit, which means it can hardly cope with more demand,” Rehberg added.
Nevertheless, members of both the SPD’s own left wing and of the Greens, an increasingly strong opposition party, are pushing for a fiscal U-turn. Even the influential BDI industry lobby group, traditionally close to Merkel’s conservatives, last week called for a debt-financed fiscal stimulus package.
Cansel Kiziltepe, a lower house SPD lawmaker specializing in finance, said Merkel and the conservatives should stop blaming local authorities and rethink their insistence on incurring no new debt in their budgets, a policy goal commonly known as the “black zero.”
“Especially in times of economic weakness and in light of improved outflow of funds, it’s high time to say goodbye to the fetish of the black zero,” Kiziltepe told Reuters.