The Allan Labor Government will restrict the use of non-disclosure agreements (NDAs) in workplace sexual harassment cases, because they can be used to silence victims.
Premier Jacinta Allan and Minister for Industrial Relations Jaclyn Symes announced that new laws will be introduced into the Victorian Parliament today that put the voices of victim-survivors first - and stop the practice of NDAs being used to silence workers and conceal sexual harassment in the workplace.
NDAs were meant to protect trade secrets but they have become an entrenched practice in settling sexual harassment complaints out of court - often used to keep details of the complaint and the alleged harassment confidential.
This creates a culture of secrecy - enabling perpetrators to reoffend, letting employers avoid action to prevent sexual harassment in their workplaces, and preventing victims from openly speaking about their experiences.
The Restricting Non-disclosure Agreements (Sexual Harassment at Work) Bill 2025 will address power imbalances in the NDA negotiation process and let victim-survivors decide whether they want to enter an NDA.
The Bill delivers protections for workers subject, or allegedly subject, to sexual harassment including:
- Prohibiting NDAs unless requested by the complainant
- Mandatory requirements for information statements and a review period before a worker signs an NDA
- Prohibiting an employer from pressuring or influencing a worker to enter an NDA
- Allowing a worker who has entered an NDA to talk to certain people and bodies such as Victoria Police, and medical and legal professionals
- Allowing a worker to end an NDA after 12 months of notice to the other party.
The proposed Bill is the first of its kind in Australia, and among the first in the world.
Legislating to restrict the use of NDAs was a key recommendation of the Victorian Ministerial Taskforce on Workplace Sexual Harassment.
As stated by Premier Jacinta Allan
"We heard from victims who have been silenced in the workplace, and this legislation will make sure they have a voice."
"How can we have a hope of stopping sexual harassment in the workplace when the conduct gets hidden, the victim gets silenced and the powerful stay protected?"
As stated by Minister for Industrial Relations Jaclyn Symes
"We know that NDAs are too often misused, and these laws are about putting the voices of victim-survivors first."
As stated by victim-survivors (anonymised):
"There was no negotiation. If I wanted to leave with the money I had to sign. Signing was a condition for the money. It added enormously to my mental health issues. It makes serial offenders untouchable. The guy in my case was well known for his behaviour." - Jennifer
"I was grateful to have a financial resolution and an end to having to deal with lawyers. Signing the NDA was non-negotiable. It was explained to me but I was tired, emotionally fraught and not in a good position to make that decision at the time." - Jun
"Dangerous conditions need to be addressed, not brushed under the carpet. People subject to victimisation need to be able to demonstrate their agency in order to reassert their sense of safety. An institution's public relations concerns should never trump the wellbeing of people." - Samantha
"I felt like I didn't have a choice and had to sign the NDA. The worker then went on to get a promotion at another organisation without the impact of their behaviour being acknowledged. The victims are silenced and unable to discuss the incidents while the offender has their reputation intact and no consequences for their actions." - Paula
"I wasn't able to negotiate. The terms were the terms, everything I raised was ignored. My mental health declined significantly... Most businesses settle out of court to keep their wrongdoings quiet. There is an unfair power imbalance that leaves employees helpless. Either you shut up or you are left with nothing." - Jess
"The stress made me sick. I felt like my rights had been taken away... I think you should have the right to tell the truth about what happened. If they have broken workplace laws you should be able to say that's what happened." - Claire
"There was no negotiation. I was told as part of the conditions of settlement this would need to be signed... The NDA was the organisations way of not accepting liability. The NDA is another form of power and control they have over employees. It should never be contingent of settling a claim." - Oanh
"It's affected me long term because now I can't talk about it. I can't warn people. I can't share my experience with those who would understand most. I can't explain why I've been the way I have. The most severe negative long-term impact of it all was how I just signed it because I couldn't fight anymore. I thought it was done. I thought I could move on. Instead, I have to live with it and it's constant chokehold on my recovery from that." - Katie
