Victoria Restricts NDAs in Workplace Sexual Harassment Matters

From 1 July 2026, there are significant restrictions on the use of non-disclosure agreements in Victorian workplace sexual harassment matters, following the commencement of the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 (Vic).

The changes have been introduced in response to the Victorian Ministerial Taskforce on Workplace Sexual Harassment’s recommendation to restrict the use and scope of non-disclosure agreements (NDAs) to resolve workplace sexual harassment complaints. The Taskforce’s recommendations were based on its view that NDAs are commonly used to silence victims, and to limit accountability on the part of employers and offending workers.

The purpose of the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 is to ensure that NDAs are only entered into in genuinely voluntary circumstances, and to limit the extent to which employers can prevent complainants speaking about their experiences.

However, the changes present a range of practical challenges for employers. Many employers settle sexual harassment complaints, regardless of whether those complaints are substantiated, at least in part to limit reputational harm. Where a settlement provides limited or no reputational protection, employers may have less incentive to settle complaints. As a result, the changes could lead to fewer mutually agreed resolutions of these disputes, and increased litigation.

What has changed

The Act provides a number of significant procedural steps before an employer may enter into an NDA with a worker who alleges workplace sexual harassment.  Specifically, the Act provides that:

• the complainant, and not the employer, must request to enter into the NDA;
• the complainant must not be pressured by the employer, the respondent, or anyone acting on their behalf to enter into the NDA;
• the complainant must be provided with:
  • an information statement published by the Victorian Government setting out the terms of the legislation and requirements for entering into an NDA; and
  • a draft of the NDA and 21 days to review it before entering into it (unless the complainant requests a shorter review period, or waives the review period); and
• the parties must agree, in a prescribed form, that the Act’s preconditions for NDAs have been met.

Further, an NDA must permit disclosures to a broad range of parties, including, amongst others:

• lawyers;
• union representatives;
• medical and mental health practitioners;
• a friend or family member who is supporting the complainant and who has agreed to keep the information confidential;
• police;
• the Independent Broad-based Anti-corruption Commission;
• the Office of Public Prosecutions;
• employers or prospective employers of the complainant; and
• various other statutory bodies.

Critically, even where an NDA complies with these preconditions, the Act allows complainants to terminate an NDA after one year.

This means that, apart from “Protected Information”, other material information could be disclosed by a complainant who has entered into an NDA after one year. “Protected information” is defined to mean:

• the amount of any financial compensation payable in respect of the sexual harassment; and
• where the respondent was under the age of 18 at the time of the alleged conduct, their identity.

As such, NDAs will only be available in the context of negotiated settlements if they are requested and desired by the complainant. Functionally, they will still protect the confidentiality of any financial settlement, but they will not protect any other information beyond one year.

Practical Implications

The most important steps an employer can take in relation to workplace sexual harassment matters have not changed, and include:

• continue to ensure strict workplace conduct policies are in place to prevent sexual harassment occurring;
• maintain internal reporting procedures to ensure that sexual harassment claims are managed quickly and effectively; and
• be prepared to thoroughly investigate sexual harassment claims.

Further, given the new restrictions on the use of NDAs, employers should:

• recognise the limits of using confidential settlements to resolve sexual harassment claims, including where those claims are unsubstantiated;
• consider whether the engagement of external investigators, rather than investigating matters internally, should be the preferred approach; and
• implement clear internal and external communications strategies which will mitigate reputational damage where sexual harassment complaints are made public, whether or not those complaints are substantiated. 

How we can help

Our Workplace Relations, Employment & Safety team advises on workplace disputes and resolution, and employment policies.

Please contact us if you would like to discuss how these new laws may affect your business or organisation.

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This summary is intended as general information only and does not constitute legal advice. You should seek specific legal advice in relation to your individual circumstances.