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Overview
In 2021, Prince Edward Island (PEI) became the first Canadian province to enact legislation regulating the use of NDAs in cases of harassment and discrimination. The Non-Disclosure Agreements Act aims to prevent the misuse of NDAs to silence victims, thereby promoting transparency and accountability.

 

Key Provisions

• Consent Requirement – NDAs related to harassment or discrimination are only enforceable if the victim explicitly requests it, has received independent legal advice, and is given seven days to consider the agreement.

• Public Interest Consideration – The law ensures that NDAs cannot be used to protect perpetrators or conceal systemic misconduct.

• Right to Waive Confidentiality – Victims who sign an NDA must have the ability to waive confidentiality later without legal repercussions.

 

Current Status
The Non-Disclosure Agreements Act was passed in December 2021 and officially came into effect in 2022, making PEI a leader in Canada on this issue. The legislation has since inspired similar efforts in other provinces seeking to reform the use of NDAs in cases of harassment and discrimination.