Breaking the silence: understanding Victoria’s proposed laws on NDAs in sexual harassment cases

In October 2025, the Victorian Government unveiled the Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025 (the Bill), a move set to overhaul the use of Non-Disclosure Agreements (NDAs) in sexual harassment settlements. The Bill springs from a key recommendation of the 2021 Ministerial Taskforce on Workplace Sexual Harassment and lands amid a sharp rise in penalties and sweeping reforms sparked by the 2021 Respect@Work changes.

Here, our experts unpack what these changes mean for employers, outline the practical steps to ensure compliance, and address key questions surrounding the Bill and its implications.

What are Non-Disclosure Agreements?

Employers commonly rely on NDAs and broad confidentiality clauses in settling sexual harassment complaints, claims, or even throughout an employee’s entire employment. These agreements often appear in deeds of settlement, release forms, or employment contracts. While they can protect sensitive business information, they are frequently used to silence victims and prevent scrutiny of workplace misconduct. This practice puts employers at reputational and legal risk, particularly as regulators and advocacy groups push for greater transparency and stronger protections for employees. Keeping ahead of these changes is essential for businesses committed to creating safe and accountable workplaces.

How have we gotten here?

Societal attitudes towards sexual harassment have shifted significantly, and the often-cited case of Richardson v Oracle illustrates how courts are beginning to catch up in the penalties they award. Yet there is still considerable distance to go in creating safer workplaces. While sexual harassment is not an issue limited to women, it is difficult to overlook the current cases and statistics that predominantly involve women.

Sydney University’s Centre for Gender Equality and Inclusion @ Work maintains a “Gender Equality @ Work Index”, which shows that one of the areas where equality has declined over the past decade is workplace safety. This decline is driven mainly by higher rates of sexual harassment and other psychological injuries experienced by women.

A glance at just the past year makes clear how prevalent workplace sexual harassment remains.

1. In Magar v Khan [2025] FCA 874, the Federal Court awarded a total of $305,000 in compensation and damages to a worker who was sexually harassed by her manager in a workplace where inappropriate behaviour was routinely tolerated.
2. In September 2025, the QIRC awarded a worker at Oishi Teppanyaki & Café Pty Ltd $140,000 in general damages for sexual harassment, a further $10,000 in aggravated damages, and ordered payment of $26,434 in costs after she was sexually harassed and assaulted by her manager.
3. In May 2025, Blisspell Pty Ltd in Reservoir, Victoria, was convicted and fined $100,000 for failing to maintain a workplace that was safe and free from the psychological risks associated with sexual harassment.

Last year, the hospitality sector in New South Wales was shaken by serious sexual harassment allegations involving both Swillhouse and Merivale venues. Former Swillhouse staff made public claims of harassment and assault, prompting a SafeWork NSW investigation into the handling of workplace safety and discrimination.

What does the Bill propose?

Although recent reforms to the Sex Discrimination Act 1984 (Cth) and the Fair Work Act 2009 (Cth) have strengthened employer obligations to prevent sexual harassment and clarified dispute-resolution pathways, the new Bill focuses squarely on improving outcomes for complainants. In his second reading speech, Victorian Minister for Finance, Danny Pearson, highlighted several concerns surrounding the continued use of NDAs in sexual harassment matters, including:

• The significant power imbalance that often exists between workers and employers.
• The use of NDAs to shield organisations from liability and silence victim-survivors.
• The risk that negotiating and signing NDAs can further traumatise those who have already experienced harm.

These issues underpin the Bill’s broader objective: shifting the balance toward transparency, accountability and safer workplace cultures.

The Bill applies to:

• complainants who usually work or are based in Victoria;
• to employers that principally operate in Victoria; and
• where those conditions are not met, to conduct that occurs in Victoria.

It introduces strict limits on when an NDA can be used in sexual harassment matters and places employee choice at the centre of any decision to include one.

In particular:

• NDAs must be requested by the employee.
• Employers cannot pressure or influence an employee to accept an NDA, including by offering a higher settlement or implying the employee will struggle to find future work.
• Employees must receive a Workplace Non-Disclosure Agreement Information Statement and be given at least 21 days to review the NDA and obtain legal advice.
• Employees may still disclose information to authorities such as police and medical practitioners, as well as to family and friends for support.
• NDAs must be written in plain English.
• If the Bill’s conditions are not met, the employee is not required to maintain confidentiality.
• Complainants may choose to terminate the NDA after 12 months without affecting the financial compensation they received.
• The Bill applies whenever any part of a complaint involves sexual harassment.

What is the impact on employers?

This Bill underscores that the first and foremost responsibility of employers remains taking proactive steps to prevent and eliminate sexual harassment in the workplace.

This involves regular training on sexual harassment, conducting risk assessments, and fostering a workplace culture that does not tolerate sexual harassment or other inappropriate behaviour. It will be interesting to see whether such measures are extended to address other forms of workplace misconduct, including broader discrimination, or if other states follow Victoria in introducing similar legislation. Regardless, ensuring accountability for sexual harassment remains a responsibility for the entire community, not just regulators

As Victoria moves closer to passing the Bill, employers should take proactive steps to ensure they are ready and compliant. Key actions include:

1. Review and update policies: ensure workplace policies clearly prohibit sexual harassment and outline reporting procedures.
2. Implement regular training: provide comprehensive sexual harassment training for all staff, including managers and HR personnel.
3. Conduct risk assessments: identify areas of the workplace or practices that may create opportunities for harassment.
4. Audit existing NDAs: review any current non-disclosure agreements to ensure they comply with the Bill’s proposed restrictions.
5. Foster a safe workplace culture: encourage open reporting, support victims, and address inappropriate behaviour promptly.
6. Seek legal guidance: work with employment law specialists to prepare for compliance, including how NDAs can be used appropriately under the new law.

Taking these steps can not only ensure employers comply with the proposed legislation but also foster a safer, more transparent, and inclusive workplace environment. By proactively addressing these changes, businesses can build trust with their employees, demonstrate a commitment to ethical practices, and create a culture where safety and accountability are prioritised.

If any of this information has raised questions about these changes to sexual harassment legislation for your business, or you have another workplace matter you need assistance with, please reach out to our friendly Citation Legal team for a confidential chat.

About our author

Zaynab Aly is a Solicitor at Citation Legal. She has a particular interest in the retail industry and regularly provides advice on workplace matters to find solutions for clients.