New Victorian Legislation Restricts Non-Disclosure Agreements in Sexual Harassment Cases: What Employers Need to Know

Over the past years, we have seen a significant focus on tackling and preventing sexual harassment in the workplace.

The unfortunate truth is that it does not appear to be working, with investigations into sexual related conduct still being required on a regular basis. The shift we are seeing is the implementation of legislation and laws that are aimed at trying to address this.

We have seen the Respect@Work enquiry, which resulted in legislative changes and have seen the psychosocial hazards emerge in way that now enshrines psychological hazards into general workplace health and safety, with the same implications if organisations breach it. This latest piece of legislation in Victoria is another step to address one of the key issues associated with sexual harassment; silencing victims through non-disclosure agreements (NDAs).

On 2 December 2025, Victoria passed the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025, marking a significant step in addressing workplace sexual harassment and the power imbalance between employers and victims. This reform reflects ongoing efforts to create safer, more transparent workplaces and to ensure victims retain their voice.

Historically, NDAs have been used to settle sexual harassment claims quietly, often silencing victims and shielding systemic issues. Organisations were able to close out a sexual harassment matter quietly and could return to business-as-usual, without actively addressing the core issues and behaviours properly. This legislation shifts the balance by limiting the use of NDAs unless they are requested by the complainant, reinforcing the principle that confidentiality should empower victims, not protect perpetrators.

Victoria’s Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025, which received Royal Assent on 2 December 2025 will commence on 20 May 2026 and represents a major shift in workplace law. This legislation is the result of sustained efforts to address the power imbalance between employers and victims of sexual harassment, ensuring that confidentiality clauses empower victims rather than silence them.

NDAs will now only be permitted if requested by the complainant, and employers must provide an information statement and allow a review period before agreements are signed. Importantly, victims can terminate confidentiality terms after 12 months, and NDAs cannot prevent disclosures to authorities or advisors. For employers, this is not just a compliance issue, it signals a cultural expectation of transparency and accountability.

1. Transparency is Non-Negotiable

The era of blanket confidentiality clauses is over. Employers must prioritise openness and victim autonomy in settlement matters.

2.Culture Over Compliance

This law is not just a compliance exercise; it signals a cultural expectation. Organisations should review their approach to workplace behaviours and reporting and ensure that appropriate processes and potential outcomes are clear across the workforce.

3.Prepare for Increased Scrutiny

Regulators, employees, and the public will expect demonstrable efforts to prevent harassment and support victims.

This legislation is part of a broader movement to dismantle systemic barriers that have historically silenced victims and in many case has favoured the perpetrator and organisations. Employers who act early and embrace these changes will not only mitigate risk but also strengthen trust and integrity within their organizations.

For more information or if you have questions or concerns about these changes, please contact us below and one of Workplace Strategists will be in touch within 24 hours.