Practical Analysis

When a Settlement Ends but the Silence Remains

New Brunswick's proposed limits on nondisclosure agreements raise a question for employers and employees alike. When confidentiality protects a settlement, and when it shields conduct that the organization still needs to confront.

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A settlement can be the best possible ending to a difficult employment dispute. The employee obtains a remedy without years of litigation. The employer limits uncertainty, legal costs and further disruption. Both parties may have good reasons to keep the financial terms private. Confidentiality can make a negotiated resolution possible where a public fight would only deepen the harm. Then there is the uncomfortable question of what else has been made confidential. If an employee alleges harassment by a supervisor, a settlement might close the employee's claim while the supervisor continues managing the same team. The employer's immediate dispute has ended. The organizational problem may remain, and the agreement can make it harder for other people to understand why. New Brunswick introduced proposed legislation on October 27 to address the misuse of nondisclosure agreements, particularly in circumstances involving harassment, abuse and discrimination. The province describes safeguards for informed agreement and circumstances in which people may still speak about their experiences and seek advice, counselling and support. The government points to Prince Edward Island as an earlier legislative example.

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