Victorian Government to Legislate NDA Ban

The Allen Labor Government has introduced the Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025 (the Bill) to the Victorian Parliament. The Bill seeks to limit the use of non-disclosure agreements (NDAs) in the settlement of workplace sexual harassment matters, marking the first legislation of its kind in Australia and one of the few globally.

Non-Disclosure Agreements

NDAs are contractual provisions that restrict parties from disclosing specified information, traditionally used to protect trade secrets and confidential business information. However, they have become increasingly common in workplace sexual harassment settlements, often preventing victims from speaking opening about their experiences. This has led to criticism by some commentators that NDAs perpetuate a ‘culture of secrecy’, shielding perpetrators, discouraging employer accountability and silencing victims.

Key Features of the Bill

The Bill seeks to rebalance power by allowing NDAs only where it serves the victim’s interest. It aims to promote transparency and accountability in workplace conduct, while still preserving confidentiality when requested by the complainant. Key measures of the Bill include prohibiting NDAs unless expressly sought by the complainant, requiring an information statement and review period before signing, banning employer pressure or influence, allowing disclosure to approved bodies such as Victorian police and legal and medical professionals, and enabling workers to terminate an NDA after 12 months with notice.

Premier Jacinta Allan has stated that the legislation ensures victims ‘have a voice’ and prevents misconduct from being concealed. The Bill follows recommendations made by the Victorian Ministerial Taskforce on Workplace Sexual Harassment. The Allen government first announced its intention to introduce such reforms in 2022 and conducted consultations throughout 2024 to refine the framework.

If enacted, the Bill will significantly reshape how workplace sexual harassment settlements are managed in Victoria. Employers should review their current settlement practices to ensure compliance with the proposed framework.

If you have any questions about the proposed reforms or the implications for your organisation’s employment practices, please do not hesitate to contact Nick Stevens, Josh Hoggett, Evelyn Rivera or Ayla Hutchison.