Companies will be banned from using gagging orders to prevent staff from reporting wrongdoing to the police, lawyers or doctors, under Government proposals.

New legislation announced today aims to tackle the misuse of non-disclosure agreements (NDAs) in the workplace, including those being used to cover up sexual harassment, racial discrimination and assault.

But the changes are expected to be criticised by campaigners who do not feel they go far enough. The Women and Equalities Committee has called for a complete ban on the use of NDAs to cover up sexual harassment and discrimination.

The government’s planned changes to the legislation will prohibit firms from using NDAs to prevent workers from disclosing information to the police, regulated health and care professionals, doctors, and lawyers. They also require employers to make clear - "in plain English" - in an agreement and in a written statement for the employee the limitations of the agreement.

The legislation will ensure that any worker signing an NDA will get independent legal advice on the limitations of the agreement.

Under new enforcement measures NDAs that do not follow the new legislation will be legally void.

The current legislation on NDAs already allows those who sign them to report wrongdoing to the police.