Victoria to ban non-disclosure agreements (NDAs) in sexual harassment matters

In Victoria, a new law has been passed that limits the use of non-disclosure agreements (NDAs) in sexual harassment matters for employees who “usually work” in Victoria.

The change marks a shift in how these sensitive issues can be resolved, aiming to empower individuals to speak openly about their experiences while still preserving appropriate protections where needed. For employers, it’s an important reminder to review existing practices and make sure workplace policies, contracts and processes align with the new requirements.

We’ve explained what the new law means, who it applies to and the practical steps employers should be thinking about now.

How will the new law work?

The restrictions will apply to confidentiality provisions in employment contracts, settlement agreements, deeds of release and “stand-alone” NDAs.

NDAs will only be allowed in very limited circumstances, namely if all the following preconditions are met:

• The employee (rather than the employer) requests that an NDA be entered into.
• The employee is given at least 21 days to review the agreement, unless they agree to a shorter review period.
• Before entering into the agreement, the employee is given a Workplace NDA Information Statement which will be published by the Victorian Department of Treasury and Finance.
• Before entering into the agreement, both the employer and employee acknowledge, in an approved form, that these preconditions have been met.
• The employee is not unduly influenced or pressured to request, or enter into, an NDA.

The new law will also allow employees who have entered into an NDA to still discuss matters about workplace sexual harassment with certain people and bodies such as family or friends (provided they agree to keep any information disclosed confidential), the Victoria Police and medical and legal professionals.

Importantly, even after the NDA has been entered into an employee will be able to terminate an NDA, at any time on or after the first anniversary of the date on which the NDA was entered into.

Read the full text of the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025.

What about deeds of release and settlement agreements?

The law only relates to provisions in agreements preventing disclosure of information, but would not stop an employee from agreeing to waive or settle a claim about sexual harassment (in a deed of release or settlement agreement, for example). 

It will therefore still be possible for employees to agree to waive their rights to bring a sexual harassment claim and even if an employee exercised their right to terminate an NDA after 12 months, it would not affect the operation of the other parts of a deed of release or settlement agreement which would continue to prevent them from bringing a claim.   

When will the new law take effect?

The new law will not apply retrospectively, so existing NDAs will remain enforceable. 

The date the new law will come into effect has not yet been set, but 1 November 2026 is the latest date it will come into force. The Victorian government has said it plans to bring it into effect on 20 May 2026.

Employment Hero can help you navigate changes to employment legislation with confidence

If you have employees in Victoria and want support navigating these changes, our team is here to help. Our team of HR Advisory experts can guide you through what this new law means for your business and help you manage your employer obligations as the changes come into effect.

Keen to learn more about how Employment Hero can help? Get in touch with one of our business specialists now.

Disclaimer: The information in this article is current as at 14 January 2026, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.