March 26, 2025

The cost of non-disclosure agreements in Higher Education

Non-disclosure agreements (NDAs) in higher education have significant financial and reputational costs. Between 2014 and 2019, UK universities issued nearly 11,000 NDAs, with 2,600 signed in 2017-18 alone. These agreements are often used to silence misconduct allegations, such as bullying or harassment, raising concerns about their impact on transparency and accountability.

NDAs can be costly. Some agreements cost as much as £500,000, and institutions like the NHS have spent millions on similar confidentiality clauses. Additionally, negotiating NDAs can lead to costly settlements, with colleges potentially paying between £20,000 and £200,000 in cases involving discrimination claims.


The reputational costs are also significant. NDAs can prevent institutions from addressing systemic issues, as they limit public disclosure of misconduct. This can hinder efforts to improve policies and practices, ultimately affecting the quality of education and the well-being of staff and students.


Recent legislative changes, such as the Higher Education (Freedom of Speech) Act 2023, aim to curb the misuse of NDAs by banning their use in cases of sexual misconduct or harassment. These reforms seek to protect victims and promote transparency, though their long-term impact remains to be seen.

Source: Perplexity.AI

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