New bill before the Senate would crack down on non-disclosure agreements | CBC News

A new bill tabled in the Senate Tuesday would curb the use of non-disclosure agreements that force employees to remain silent about harassment, violence or discrimination in the workplace. 

The “Can’t Buy Silence Act,” introduced by Sen. Marilou McPhedran, would apply to Canada’s public service and any organization that receives federal funding, including Crown corporations like CBC News and non-governmental national sport organizations like Hockey Canada.

McPhedran said the bill would change federal law to bar the federal public service and organizations receiving federal funding from employing NDAs in cases of “harassment and violence or discrimination.” She said the goal is to ensure that public money isn’t used to “protect perpetrators” or “cover up abuses.”

“This bill follows the money, making it impossible to use federal monies for such NDAs on a go-forward basis,” McPhedran told CBC News.

NDAs often contain clauses preventing victims from speaking publicly about their allegations in return for a settlement payment. Such agreements can also contain clauses that prevent victims from revealing how much money they were paid — or even that they were paid at all.

The new bill comes after Hockey Canada came under fire for using NDAs to settle allegations of sexual abuse. 

Hockey Canada negotiated an NDA when it settled a high-profile $3.5 million lawsuit filed by a young woman who alleged a group of World Junior hockey players sexually assaulted her in a London, Ont. hotel room in 2018. 

Critics recently called out the federal government for restoring Hockey Canada’s federal funding without requiring it to abandon the use of NDAs.

WATCH/ Critics call out feds for restoring Hockey Canada funding without action on NDAs

Critics call out feds for restoring Hockey Canada funding without action on NDAs

Critics are calling out the federal government for not making banning non-disclosure agreements (NDAs) a condition for resuming funding for Hockey Canada. They say NDAs can be used to silence sexual assault victims, and cover up misconduct.

“Hockey Canada enabled Canadians to realize NDAs were being used very widely to cover up misconduct and this bill will prevent future public money being used to suppress information about misconduct,” said Julie Macfarlane, co-founder of a campaign against the abuse of NDAs called “Can’t Buy My Silence.” She said she helped McPhedran draft the new bill.

Macfarlane said she is aware of a number of instances of NDAs being used in settlements involving discrimination and sexual harassment in the federal public sector and federally funded organizations.

“NDAs work effectively because victims believe they are the only way they can protect their personal privacy, by agreeing to protect the privacy of the other side,” Macfarlane told CBC News. 

“This bill dismantles that bogus argument by giving victims rights to say no and prevent them being sued for non-compliance.”

The new bill calls for changes to the Federal Administration Act and the Parliament of Canada Act. It would ban the use of NDAs in certain cases and the use of public funds to pay out these agreements. The bill also would require a public review by a parliamentary committee every two years. 

The legislation would prevent public money from going to settlements that include NDAs and from enforcing NDAs. It also calls on “federally funded entities” to report to the government annually on the number of NDAs signed and the amount of money involved.

WATCH/ Hockey Canada drops NDA with complainant in alleged sexual assault case

Hockey Canada drops NDA with complainant in alleged sexual assault case

Hockey Canada has dropped a non-disclosure agreement with the woman who was allegedly sexually assaulted by a group of players in 2018. Meanwhile, some lawyers and advocates are pushing for NDAs to be banned in some cases altogether.

Macfarlane said that money would be tracked annually in the government’s public accounts.

An audit commissioned by the federal government found Hockey Canada did not use public funds to settle sexual abuse cases between 2018 and 2022.

Hockey Canada has also stated it would release all complainants from their NDAs if they request it. It released the complainant in the 2018 case from her NDA.

Hockey Canada told CBC News last month it has not received any requests from complainants looking to be released from their NDAs.

P.E.I became the first province to pass similar legislation last year. Macfarlane said that, unlike the provincial legislation, the new bill in the Senate would prevent federally funded entities from using public money to sue or sanction complainants who break their NDAs.

Some lawyers, including Toronto-based employment lawyer Howard Levitt, have spoken out against banning NDAs. Levitt said NDAs are a legitimate tool used by companies paying to protect their reputations.