Restrictions on NDA Use in Workplace Sexual Harassment Cases in Victoria Commenced on 1 July 2026

Author: Amy Zhang

On 2 December 2025, Victoria passed laws prohibiting employers from requesting non-disclosure agreements (NDAs) in the settlement of workplace sexual harassment cases and restricting the way NDAs can be used in such matters. These new laws came into effect on 1 July 2026.

The new laws:

• prohibit NDA use, unless requested by the complainant;
• prohibit undue pressure or influence on a complainant to enter or request to enter an NDA (for example, offering a greater sum of money in exchange for an NDA);
• require an NDA information statement to be provided to the complainant before the complainant enters an NDA;
• mandate a minimum period of 21 days to review the agreement before a complainant signs an NDA;
• require that an NDA must be written in plain language;
• allow a complainant who has entered an NDA to talk to certain people and bodies (such as Victoria Police and medical and legal professionals);
• require a written acknowledgement by each party that the relevant pre-conditions have been met for an NDA to be in place;
• allow a complainant to terminate an NDA after 12 months by notifying the other party or parties in writing. Importantly, this would only permit the complainant to disclose the identity of the respondent and the conduct that constituted the sexual harassment. It would not permit disclosure of any financial compensation payable in respect of the sexual harassment or the respondent’s identity if they were under 18 years old at the time of the sexual harassment;
• make any NDA that does not comply with these preconditions unenforceable to the extent the NDA has the purpose or effect of preventing the complainant from disclosing the respondent’s identity or the conduct comprising the sexual harassment;
• make an NDA unenforceable if it has the purpose or effect of requiring a complainant to pay or repay an amount on the basis that the NDA is unenforceable or terminated.

The legislature has made clear that the intent is to restrict, and not ban, the use of NDAs, noting that victims may wish to protect their identity for personal or professional reasons. The requirement that the victim instigates the agreement, and has the power to terminate, is aimed at giving agency to the victim.

The Act will not apply to a non-disclosure agreement made before the commencement of the Act.

Where breaches of the legislation are deemed to have occurred, such as where preconditions have not been met prior to an NDA being entered into, a resolution process will be available through a breach notification process and Court.

The reforms will also prohibit an employer from entering an NDA with a respondent that prevents an investigation into workplace sexual harassment, or the employer disclosing material information about workplace sexual harassment to a prospective employer of the respondent.

The law will apply to any alleged harassment that takes place in Victoria, and any worker or employer that has their work based in Victoria. Given the worldwide trend to restrict or ban NDAs, other jurisdictions in Australia may also follow Victoria’s lead.

Key Actions for HR and In-House Counsel

• Ensure settlement of sexual harassment matters adheres to the new restrictions.
• Review and update any template deeds of release, and contractual non-disclosure agreements and clauses.
• Monitor jurisdictions other than Victoria for similar legislation.

If you require legal advice or assistance, please contact our Harmers team at +61 2 9267 4322.