One year on, we take a look at the impact the 2024 Act has had in practice and offer practical guidance to employers navigating this area. 

Void NDAs/Confidentiality Clauses  

Under the 2024 Act, any purported NDA or confidentiality clause in a settlement/severance agreement, between an employer and employee shall be void where such NDA/clause prohibits the employee from disclosing the following:

• An allegation that an employee has experienced discrimination, harassment, sexual harassment or victimisation regarding his/her employment, or  
  
• Any action taken by an employer or employee in response to the making of such an allegation, including any proceedings taken by the employee.

This restriction only applies in relation to the abovementioned scenarios and NDAs/confidentiality clauses in agreements can still be used without issue where there is no allegation by an employee that he/she has experienced discrimination, harassment, sexual harassment or victimisation. However, in any situation where a compromise is being negotiated with an employee, and there is an allegation of discrimination, harassment, sexual harassment or victimisation, the 2024 Act will apply to any agreement negotiated and great care must be taken by employers in preparing any settlement/severance agreement to ensure the purported NDA/confidentiality clause is enforceable.

Valid NDAs/Confidentiality Clauses 

There are limited circumstances where NDAs/confidentiality clauses in a severance agreement remain permissible, valid and enforceable in these circumstances as follows:

Where the NDA:

1. was entered into as part of a WRC Mediation, or
2. is an “excepted” NDA for the purpose of the 2024 Act. An excepted NDA is defined in the 2024 Act as follows:  
   a. the employee must request the NDA, and  
   b. prior to entering into the NDA, the employee must have received independent legal advice in writing.

The 2024 Act also provides that the employer shall pay the reasonable legal fees incurred by the employee in getting this written legal advice.

(a) be in writing,
(b) be of unlimited duration (other than where the employee elects otherwise),
(c) be in clear language that is easily understood and a format that is easily accessible by the parties (including any party with a disability),  
(d) provide the employee with a right to withdraw from the agreement without penalty within 14 days from the date of entry into the agreement, and
(e) include a provision stating the agreement does not prohibit the employee making a relevant disclosure to an Garda Síochána, a legal practitioner, a registered medical practitioner, a mental health professional, Revenue, the Ombudsman, a trade union officer or any other individual as agreed by the parties.

Practical Employer Guidance  

The 2024 Act has placed significant restrictions on the contractual autonomy of private parties, particularly employers, surrounding NDAs and confidentiality clauses in settlement/severance agreements where there is an allegation of discrimination, harassment, sexual harassment or victimisation. This legislative development is very much pro-employee, and the impact of these provisions has been significant in practice. Interestingly, England and Wales seem to be following Ireland’s lead in this area. The Employment Rights Act 2025, enacted in December 2025 but not yet commenced, will introduce similar provisions in our neighbouring jurisdiction.

The new rules apply to WRC claims taken under the 1998 Act and in practice, WRC complaints also frequently include a claim of discriminatory treatment under the 1998 Act even where the main claim is under another piece of legislation, for example unfair dismissal or a terms of employment claim. As such, the provisions of the 2024 Act are relevant to a large portion of WRC claims crossing our desks.

The right of the employee to withdraw from a fully executed agreement without penalty within 14 days has been the most significant development. In practice, we have seen employees withdraw from settlement agreements containing an “excepted” NDA within this 14-day cooling off period. This adds uncertainty to compromise arrangements and in practical terms, we would advise employers not to start implementing settlement terms until such time as the 14-day cooling off period has expired.

In the context of a WRC claim under the 1998 Act, employers are encouraged to participate in WRC mediation where possible in cases where a compromise in advance of hearing is sought. An agreement entered into under the auspices of WRC mediation avoids the 14-day cooling off period required by an “excepted” NDA.

Great care should be taken in respect of drafting any settlement/severance agreement where there is an allegation of discrimination, harassment, sexual harassment or victimisation.