Employers in Victoria face tougher rules on using non-disclosure agreements (NDAs) in workplace sexual harassment cases. The changes aim to stop confidentiality clauses from silencing victims.
According to media reports, the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 (Vic) took effect on 1 July 2026. It sets strict conditions for when an NDA can be enforced. It also protects a worker's right to disclose information to regulators, lawyers, medical professionals, unions and other authorised bodies.
The reforms address concerns that NDAs have been used to hide workplace sexual harassment. They also seek to reduce power imbalances during settlement negotiations.
Six conditions must be met
An NDA relating to workplace sexual harassment will only be enforceable if all six legal conditions are met.
The complainant must ask for the NDA. Employers, respondents and their representatives cannot suggest or request one.
The complainant must genuinely want confidentiality. They must receive a government-issued information statement before signing. They must also have at least 21 days to review the agreement, unless they choose to shorten or waive the review period.
All parties must confirm the legal requirements have been met. The complainant must not face pressure or undue influence. The NDA must also be written in plain language. A signed copy of the agreement and acknowledgement form must be provided to the complainant.
Workers can still disclose information
Even with a valid NDA, complainants retain broad disclosure rights.
They can speak to lawyers, police, medical practitioners, mental health professionals and registered unions. They can also approach integrity bodies, government agencies and prospective employers.
Workers may also share information with close family members or friends for personal support, provided confidentiality is maintained.
The law allows disclosures to organisations including the Australian Human Rights Commission, Fair Work Commission, Fair Work Ombudsman and Victorian Equal Opportunity and Human Rights Commission. In some cases, the identities of the respondent and employer must remain anonymous.
Complainants can also disclose compensation details to Centrelink, financial advisers and tax agents for professional advice.
Only limited information can remain confidential
The Act allows only certain information to remain confidential without meeting the legal conditions.
This includes the amount of financial compensation paid to the complainant. It also covers the identity of a respondent who was under 18 at the time of the alleged sexual harassment.
New rights to challenge or end an NDA
The legislation introduces a formal process to challenge an NDA.
A complainant can issue a written breach notice if they believe the legal requirements were not met. If no party applies to the Industrial Division of the Magistrates Court within 30 days, the NDA becomes unenforceable.
Complainants can also end an NDA after it has been in place for 12 months. They must give seven days' written notice.
Ending or invalidating an NDA does not affect any separate settlement agreement.
Employers should review policies
The new law requires employers in Victoria to review their NDA templates and settlement processes.
They should also update internal policies and train HR teams and senior leaders on the new legal requirements.
The legislation also limits NDAs between employers and respondents. These agreements cannot stop workplace investigations. They also cannot prevent employers from informing a prospective employer about substantiated sexual harassment findings where the law permits.