Overview
Bill S-261, known as the Can't Buy Silence Act, was introduced in the Senate of Canada on May 9, 2023, by Senator Marilou McPhedran. The legislation aims to regulate the use of non-disclosure agreements (NDAs) within the federal public sector, particularly in cases involving harassment, violence, or discrimination. The bill is part of a broader effort to prevent the misuse of NDAs that shield perpetrators and silence victims, ensuring greater transparency and accountability in federal institutions.

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Origins and Rationale
The introduction of Bill S-261 stems from growing concerns over the widespread misuse of NDAs to conceal workplace misconduct, including sexual harassment and discrimination. Advocacy efforts, including the Can't Buy My Silence campaign led by former Weinstein whistleblower Zelda Perkins and legal scholar Dr. Julie Macfarlane, have played a pivotal role in exposing how NDAs have been weaponized against victims, preventing them from sharing their experiences and seeking justice.

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The bill follows several high-profile cases in Canada where NDAs were used to cover up workplace abuse, including within government institutions. Reports of NDAs being used in harassment settlements within federal agencies raised alarms that public funds were being used to silence victims rather than address systemic issues. Senator McPhedran, a longtime advocate for gender equity and workplace protections, introduced the bill to ensure that federal institutions could no longer use NDAs to shield perpetrators or obstruct victims' rights.

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Key Provisions

• The President of the Treasury Board is required to report on the use of NDAs in the federal public sector, ensuring greater transparency.

• The bill amends the Financial Administration Act to prohibit the use of public funds to:

  • Settle harassment, violence, or discrimination complaints if the settlement includes an NDA.

  • Litigate NDAs against complainants who wish to speak out.

• Non-governmental entities receiving federal grants or contributions must report their use of NDAs to the President of the Treasury Board, ensuring accountability beyond the public sector.

 

Implications for Individuals
For employees and stakeholders in the federal public sector, Bill S-261 represents a significant shift toward openness and accountability. It ensures that NDAs cannot be used to suppress information about workplace misconduct, fostering a safer and more equitable workplace. The bill also holds federally funded organizations accountable for their use of NDAs, expanding its impact beyond government institutions.

 

Current Status
As of March 8, 2025, Bill S-261 has progressed through the following legislative stages:

• First reading introduced in the Senate on May 9, 2023.

• Second reading debated and approved in principle.

• Committee review examined by the Senate Standing Committee, which may have suggested amendments.

• Third reading passed by the Senate and forwarded to the House of Commons for consideration.

 

The bill is currently under review in the House of Commons. If it passes all necessary readings and receives Royal Assent, it will become law, enforcing strict restrictions on NDAs within the federal public sector and ensuring that public funds cannot be used to silence victims of harassment, violence, or discrimination.