Victoria introduces bill to restrict NDAs in sexual harassment cases

The Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025 (Vic) was introduced to the Victorian Parliament on 29 October 2025, marking a major step toward transparency and fairness for victim-survivors in the workplace.

What the Bill Does

The proposed law aims to stop NDAs from being used to silence victims of workplace sexual harassment or misconduct.

Under the Bill:

• Employers will be prohibited from using NDAs in workplace sexual harassment settlements unless the victim-survivor explicitly requests one.

• Workers who already signed NDAs will be able to waive confidentiality after 12 months, allowing them to speak publicly or disclose details to police, lawyers, counsellors or medical professionals.

• Employers must provide a mandatory information statement and a review (cooling-off) period before any NDA is finalised.

• Employers or lawyers cannot pressure or influence a worker to accept confidentiality terms.

• Heavy penalties will apply for coercion or breach of these new obligations.

This is the first law of its kind in Australia, aligning Victoria with global trends — including reforms in the UK and several U.S. states — that seek to end the culture of silence around sexual misconduct.

What It Means for Workplaces and Employers

For decades, NDAs have been used to quietly settle sexual harassment claims. While these agreements can protect privacy, they’ve also been used to shield repeat offenders and protect organisations from reputational harm, often at the expense of victims’ wellbeing and justice.

This Bill shifts power back to victims, giving them control over whether confidentiality is appropriate — rather than letting it be a default legal strategy for employers.

If passed, this legislation will reshape how Victorian workplaces manage sexual harassment complaints.
Employers will need to:

• Review settlement practices and policies immediately.

• Ensure that any proposed NDA complies with new requirements, including the cooling-off period.

• Update internal training for HR, legal and leadership staff.

• Prepare for greater public transparency and potential reputational scrutiny when incidents occur.

For employees, this change means greater empowerment: the ability to speak about their experiences without breaching confidentiality agreements that previously silenced them.

Implications for Criminal Cases

Although the Bill focuses on workplace sexual harassment, it could have broader consequences for criminal sexual offence matters, including historical cases.

1. Increased Evidence Sharing

   • Victims who were previously bound by NDAs can now disclose information to police or prosecutors, even about conduct that may amount to a criminal offence (e.g. indecent assault, sexual touching, coercion).

   • This may lead to new reports, particularly in industries where harassment was previously handled “internally” and never reached the criminal system.

2. Supporting Witness Credibility

   • Allowing survivors to speak may strengthen criminal investigations by uncovering patterns of behaviour or multiple victims, assisting prosecutors in establishing intent or similarity of conduct.

3. Impact on Past Settlements

   • Some NDAs signed years ago may now lose their silencing effect, allowing information about alleged criminal conduct to resurface.

   • Defence lawyers will need to consider whether new disclosures breach legal privilege or affect ongoing or concluded matters.

Next Steps

For survivors, this Bill represents a long-overdue right to speak up.
For employers and legal professionals, it’s a reminder that ethical conduct and compliance must go hand in hand — especially where criminal behaviour may intersect with workplace law.

If you’ve experienced sexual harassment, been asked to sign an NDA, or need advice on how these changes could affect your workplace or a criminal matter, you may need legal advice.

This OYBlog was created with AI assistance based on the following source:
https://www.theguardian.com/australia-news/2025/oct/29/bill-to-ban-ndas-sexual-harassment-victoria-parliament-australia-first