Council clarifies use of conciliation agreements after NDA confusion
Derry City and Strabane District Council has stated it does not enter into non-disclosure agreements (NDAs), but has used conciliation agreements containing confidentiality clauses to settle employment disputes.
A report to the council’s Governance and Strategic Planning Committee, to be presented on September 2, clarifies that between 2021 and April 2026 the council resolved 18 workplace disputes through such agreements. The figures were included in a Freedom of Information (FOI) response after the council was asked about its use of NDAs.
The report explains that an NDA is designed to protect confidential information such as trade secrets, while a conciliation agreement settles a dispute between an employer and employee. These agreements may involve current or former staff and typically include a confidentiality provision as standard practice. The council noted that such agreements cannot be used to conceal crimes, prevent whistleblowing, or block reports to police.
At a council meeting in June, independent councillor Gary Donnelly requested a report on the number of NDAs entered into by the council, broken down by service area and grade. He said media reporting had raised public questions about council transparency, and that the report would help members understand why such agreements are considered necessary.
Compensation under the agreements varied. Six employees received up to £1,000 each, four received between £3,000 and £5,000, six received between £7,000 and £12,000, and two employees received between £20,000 and £65,000. The report states that higher payments mostly consist of contractual entitlements such as holiday pay, pay in lieu of notice, and severance.
The council said it is unclear whether other councils took the same approach of including conciliation agreements in their FOI responses about NDAs, as the confidentiality clause relates to the content of the agreement rather than its existence.