Breaking the silence: Victoria to restrict the use of non-disclosure agreements in workplace sexual harassment cases

On 29 October 2025, the Victorian Government introduced the Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025 (Vic) (Bill) to parliament.

The Bill responds to findings by the Ministerial Taskforce on Workplace Sexual Harassment in Victoria (Taskforce) that non-disclosure agreements (NDAs) are being misused to silence workers who have been subjected to sexual harassment, protect perpetrators and employer reputations, and avoid full liability.

The Bill would implement recommendation 10 of the Taskforce which called for legislative amendments to restrict the use of NDAs in relation to sexual harassment cases in Victoria to better prevent and respond to sexual harassment in workplaces.

If passed, the new laws are proposed to commence after 1 November 2026 and will not have retrospective effect.

Victoria is the first jurisdiction in Australia to propose legislation of this kind and follows similar reforms in Ireland, Canada, and several states in the US. The Bill also follows a recent call by the Australian Human Rights Commission (AHRC) for similar restrictions in its ‘Speaking from Experience’ report released in June 2025.

What is a ‘workplace NDA’?

The Bill is aimed at regulating the use of ‘workplace NDAs’, which include agreements between a complainant and their employer about the disclosure of ‘material information’, being the respondent’s identity or any details relating to the commission or alleged commission of workplace sexual harassment. The Bill also covers other types of NDAs, outlined below.

The prohibition of workplace NDAs: Key provisions

The Bill aims to permit certain types of disclosures relating to workplace sexual harassment by prohibiting NDAs and/or rendering them unenforceable in certain circumstances.

Subject to some exceptions, the Bill prohibits and/or renders unenforceable:

• Workplace NDAs that prevent the disclosure of ‘material information’ about workplace sexual harassment to certain individuals and government bodies including:
  • lawyers, an employer or prospective employer of the complainant, a friend or family member, Victoria Police, medical practitioners and financial advisors or tax agents; and
  • bodies such as the Australian Human Rights Commission, the Fair Work Commission, the Fair Work Ombudsman and the Victorian Equal Opportunity and Human Rights Commission.
• NDAs between a complainant’s employer and the respondent which prevent:
  • an investigation by the employer into workplace sexual harassment; and
  • where allegations are substantiated – disclosure by the complainant’s employer of details about the commission of workplace sexual harassment or the respondent’s identity to a prospective employer of the respondent.
• NDAs in employment contracts where they would prevent a worker from disclosing material information about workplace sexual harassment.

Complainants will be able to terminate a prohibited workplace NDA 12 months after entering into the NDA by giving 7 days’ written notice.

When will parties be able to enter into workplace NDAs?

The Bill proposes pre-conditions to entering a workplace NDA, including:

• a complainant must request to enter into the workplace NDA and expressly wish to enter into such agreement;
• before entering into the workplace NDA, the complainant must be given a copy of a ‘workplace non-disclosure agreement information statement’ that will, once it has been prepared, include information about the NDA regime;
• the complainant is given at least 21 days to review the NDA before entering it, unless they have requested a shorter review period or waived the review period altogether;
• the complainant’s employer, the respondent or a person acting on behalf of the employer or respondent must not exert undue influence or pressure on the complainant;
• the workplace NDA must be in plain language; and
• a complainant must be given a copy of the signed NDA.

Key takeaways for employers

There has been growing awareness and regulation addressing the risks associated with workplace sexual harassment and related unlawful conduct over recent years.

This Bill, if passed, will mark a further significant shift in relation to how sexual harassment complaints are managed in a workplace setting.  Further reforms, including at a federal level, may follow given that the AHRC’s ‘Speaking from Experience’ report included a recommendation that the Sex Discrimination Act 1984 (Cth) and relevant industrial laws are amended to restrict NDAs.

For the time being, employers are encouraged to:

• Stay informed: Keep up to date with legislative developments in this space, including the passing of this legislation.
• Review existing employment agreements and NDAs: Once the legislation passes, review existing agreements and related practices to ensure they are compliant.
• Take proactive action to prevent sexual harassment: The Bill is a timely reminder of the importance of ensuring compliance with legislative obligations (including the positive duty under the Sex Discrimination Act 1984 (Cth)) to prevent sexual harassment and associated unlawful conduct in the workplace. For further insights, see our recent articles here:
  • When things go wrong: Expensive lessons arising from inappropriate behaviour in the workplace
  • New guidance for employers on sexual and gender-based harassment in the workplace
  • It’s all positive: AHRC’s guidance to employers on their positive duty under the Sex Discrimination Act 1984 (Cth)
• Consider how NDAs are being used: Before the Bills is passed, employers are encouraged to consider whether and how NDAs are used in sexual harassment cases on a case-by-case basis.

For more guidance on the proposed legislation, please contact the Gadens Workplace Advisory and Disputes team.

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Authored by:

Diana Diaz, Partner
Jennifer Winckworth, Special Counsel
Claire Wingrove, Graduate