What the new Victorian NDA laws mean for your business

The Victorian Parliament has passed a new law restricting the use of non-disclosure agreements in workplace sexual harassment matters. This law will come into effect on 1 July 2026.

These changes will give victim-survivors more choice and open up an important opportunity for workplaces to do things differently. Through my work in preventing gender-based violence in workplaces, I see this as a step towards safer, more respectful workplaces for everyone.

So how will they impact businesses? And how can leaders turn this into an opportunity to strengthen workplace cultures?

What is an NDA?

A non-disclosure agreement (NDA) is a confidentiality clause in a contract or agreement which can be part of the settlement process for workplace issues. 

It prevents a person who is party to the agreement from disclosing certain information, directly or indirectly. Effectively it means people cannot talk about or share with other people what happened to them.

What is workplace sexual harassment?

Sexual harassment is unwelcome conduct of a sexual nature that makes someone feel offended, humiliated or intimidated.

Sexual harassment can be:

• verbal, for example, sexually suggestive comments or jokes

• sexually explicit materials, for example, sharing explicit pictures

• intimidating or threatening behaviours, for example, inappropriate staring or leering

• inappropriate physical contact, for example, unwelcome touching or hugging

• technology-based, for example, sexually explicit emails.

Under Positive Duty legislation , employers are responsible for taking active measures to prevent workplace sexual harassment and discrimination, rather than only responding after it occurs.

Why have these laws been introduced?

In 2021, the Victorian Government established the Ministerial Taskforce on Workplace Sexual harassment, which made 26 recommendations, including restricting the use of NDAs.

That taskforce found NDAs are 'often misused to silence victims, protect employer reputations and avoid full liability. NDAs can also be used to hide serial offending and offenders.'

The Restricting Non-disclosure Agreement (Sexual Harassment at Work) Act 2025 was passed in November 2025 and will come into effect on 1 July 2026. It is the first legislation of its kind in Australia, but similar laws exist in the UK and US.

Why are these laws important?

For too long, NDAs have been used to silence the voices of victim-survivors.

This new legislation recognises that NDAs compound harm, because they can isolate victim-survivors, limit their ability to speak, and hide systemic issues. NDAs can create or intensify power imbalances, especially if the victim survivor already has less power – for example, migrant women, people in insecure work, young people – and this legislation challenges that power imbalance, putting it back in the hands of survivors.

These laws also preserve the ability for survivors to speak to authorities, which is crucial for wellbeing and accessing advice and care.

Can NDAs still be used in workplace sexual harassment cases in Victoria under the new legislation?

It's important to note that these laws do not forbid the use of NDAs in workplace sexual harassment complaints. NDAs can still be used; however, they must be requested by the victim-survivor. This is a victim-centred approach.

This means that NDAs can still be valuable; however, they need to be led by the person making the complaint, in a way that offers them privacy and control. This legislation empowers victim-survivors, allowing them to choose confidentiality, rather than having it imposed on them. Businesses must view NDAs as a method of protecting an individual’s privacy if they request it, not a way to minimise misconduct or protect reputation.

These laws do not apply to NDAs made before these laws were introduced.

How will these changes impact Victorian businesses?

Victorian businesses will need to review their contract templates and other settlement deeds, ensuring that any confidentiality terms comply with the new legislation.

But the biggest shift for businesses will be that their employees, unions and regulators are going to have higher expectations around transparency.

There is an opportunity to transform an organisation’s approach to workplace sexual harassment, and ensure the approach is trauma-informed and person-centred. It’s an opportunity to shine a light on negative behaviour, learn about how it was allowed to occur, and then take steps to stop that harm from happening again.

These laws are an opportunity for leaders to create safer workplaces

These laws actually strengthen workplace primary prevention efforts , because they enable learning and accountability. By reducing the use of NDAs in matters of workplace sexual harassment, businesses can strengthen the feedback loop that they can use to stop this harm before it occurs.

Leaders should use these new laws as an opportunity to invest in safe-to-speak cultures.

This is a chance for businesses to:

• review their policies to ensure they are trauma-informed and person-centred

• collect data on sexual harassment occurring in their workplace

• train leadership teams to better respond to complaints

• strengthen their reporting pathways by ensuring there are multiple ways for employees to make complaints and do so anonymously if they choose.

Businesses that respond to these new laws by strengthening their workplace culture will see returns, through increased trust and improved retention.

Are these laws going to be introduced in other states?

Victoria is currently the only state in Australia introducing these restrictions around workplace NDAs.

However, these laws will extend to interstate employers if they have workers who usually work in Victoria.

The Our Watch Institute can help your business stop workplace sexual harassment before it starts.

At the Our Watch Institute, we partner with businesses to provide tailored solutions that fit your needs and goals.

Taking an evidence-based approach to preventing sexual harassment, we look at what drives this violence and the actions we need to take to stop it before it starts.

We can also work with you supporting your obligations under Positive Duty and other legislation.

We offer a variety of services including:

• consulting

• executive team or all staff training 

• policy reviews 

• organisational pulse checks 

• gender equality action plans 

• implementation support 

• internal and external communications support.

Contact us by email  or use the form at the bottom of the page to discuss your needs.