Victoria is the first Australian jurisdiction to legislate restrictions on the use of non-disclosure agreements in workplace sexual harassment cases. The Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 (Vic) came into effect on 1 July 2026. The Act does not ban NDAs — but it fundamentally changes who can initiate them, what process must be followed, and what any resulting agreement can contain. This article explains how the Act works and what it means for HR and legal teams managing workplace sexual harassment complaints in Victoria.

What the Restricting Non-disclosure Agreements Act 2025 (VIC) Covers

The Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025 (Vic) does not ban NDAs. What it does is change the circumstances in which an NDA relating to workplace sexual harassment can be entered into and enforced in Victoria.

Under the Act, a workplace NDA — defined as an agreement that prevents a person from disclosing details about workplace sexual harassment — can only be entered into if certain preconditions are met. The most significant change is that the process must be initiated by the complainant. An employer or respondent cannot propose or suggest that an NDA be entered into.

The table below summarises the key changes for employers:

What the Act does not cover

The Act does not apply to NDAs that were entered into before 1 July 2026. It also does not affect confidentiality clauses that relate to the amount of financial compensation paid to a worker, or to the name of an alleged harasser who was under 18 at the time of the conduct. The Act does not prevent an employer from giving a lawful and reasonable direction to keep information confidential for the purposes of a workplace investigation.

The 6 Preconditions for a Valid Sexual Harassment NDA in Victoria

For a workplace NDA to be enforceable, all six preconditions set out in the Act must be met. These are detailed in the mandatory NDA Information Statement published by the Victorian Government, which must be given to the complainant before they sign any NDA.

Precondition 1 — The NDA must be requested by the complainant

Only the complainant can raise the option of entering into an NDA. An employer, respondent, or their representatives cannot suggest or ask the complainant to sign an NDA that prevents them from disclosing details of the workplace sexual harassment or naming the person who harassed them (where that person was 18 or older at the time).

Precondition 2 — It must be the complainant's express wish and preference

The complainant must genuinely want confidentiality. The NDA cannot be entered into if the complainant feels pressured to request it. The complainant may change their mind at any point before signing.

Precondition 3 — The mandatory NDA Information Statement must be provided

The Victorian Government's NDA Information Statement must be given to the complainant after they request an NDA and before the NDA is signed. The Information Statement is available at vic.gov.au.

Precondition 4 — A 21-day review period must be given

The complainant must have at least 21 days to review the NDA before signing. During this period, the complainant may seek independent legal advice. The complainant can request a shorter period or waive the review period entirely.

Precondition 5 — All parties must sign the acknowledgement form

Before the NDA is signed, each party must acknowledge that the above preconditions have been met by signing an acknowledgement form. The form is available at vic.gov.au. Each party must receive a copy of the signed acknowledgement form and the signed NDA.

Precondition 6 — The complainant cannot be unduly influenced or pressured

The employer, respondent, or their representatives must not pressure the complainant into requesting or signing an NDA. The Information Statement provides examples of conduct that would constitute undue pressure, including offering more financial compensation in exchange for requesting an NDA, or threatening a negative employment reference.

What an NDA cannot cover — permitted disclosures

Even where all six preconditions are met and an NDA is validly entered into, it cannot prevent the complainant from making certain disclosures. The Act specifies that complainants may always share information about their experience with, among others: legal practitioners, medical practitioners, mental health professionals, Victoria Police, WorkSafe Victoria, a friend or family member who agrees to keep the information confidential, and their employer or potential employer for the purposes of obtaining or maintaining work.

Certain government bodies — including the Australian Human Rights Commission, the Fair Work Commission, and the Victorian Equal Opportunity and Human Rights Commission — may also receive information, subject to limitations on what can be disclosed. The complete list of permitted disclosures is set out in the NDA Information Statement.

The right to end an NDA after 12 months

A complainant who has signed a valid NDA may terminate it at any time after 12 months from the date it was entered into, by giving seven days' written notice using the Notice of Termination form available at vic.gov.au. Termination does not affect the complainant's entitlement to any financial compensation received. Where the NDA is part of a broader settlement agreement, the rest of the agreement continues to apply — including any confidentiality obligations that fall outside the scope of the Act, such as those relating to the amount of financial compensation or the identity of a harasser who was under 18.

If preconditions are not met — the breach notice process

If a complainant believes an NDA was entered into without the preconditions being met, they may issue a written breach notice to the other party. The other party then has 30 days to apply to the Industrial Division of the Magistrates' Court for an order confirming the preconditions were met. If no application is made within 30 days, the preconditions are taken not to have been met, and the NDA will not be enforceable against the complainant to the extent it prevents disclosure of material information about the workplace sexual harassment.

What this means for workplace settlement practice

The Act changes the way workplace sexual harassment complaints can be settled in Victoria where an NDA is involved. The changes are structural — they affect who can initiate an NDA, what process must be followed, and what any resulting agreement can and cannot contain.

Settlement process

The most significant practical change is that employers and respondents can no longer propose or suggest an NDA as part of a settlement. If a complainant does not raise the option of an NDA, the settlement proceeds without one.

Where a complainant does request an NDA, the process must follow the six preconditions in sequence: the mandatory Information Statement must be provided, the 21-day review period must be observed (unless shortened or waived by the complainant), and the acknowledgement form must be signed by all parties before the NDA is executed. These steps are not optional — if any precondition is not met, the NDA will not be enforceable against the complainant.

The 12-month termination right described above should also be factored into how settlement agreements are structured — noting that financial compensation terms and other elements outside the scope of the Act continue to apply regardless.

Templates and documentation

The Victorian Government has published the mandatory NDA Information Statement, the acknowledgement form, the breach notice form, and the Notice of Termination form — all available at vic.gov.au. Existing NDA templates and settlement agreement precedents should be reviewed against the Act's requirements. Any provision that proposes or suggests an NDA to a complainant, or that contains confidentiality terms inconsistent with the permitted disclosures framework, will need to be revised. Given that NDA terms vary by case, employers are advised to work with legal counsel when drafting or updating agreements.

Training and internal process

HR managers, people managers, and anyone involved in responding to sexual harassment complaints need to understand that the process has changed. In particular:

• An NDA cannot be proposed, suggested, or initiated by the employer or respondent

• The prescribed forms and process must be followed precisely if a complainant requests an NDA

• Settlement discussions should be structured on the assumption that no NDA will apply, unless and until the complainant raises it

Incorporating these points into existing sexual harassment response training and complaint-handling procedures is a practical starting point.

Workplace investigations

The Act does not affect an employer's ability to give a lawful and reasonable direction to keep information confidential for the purposes of a workplace investigation. Standard investigation confidentiality instructions remain permissible under the Act.

The Act represents a structural shift in how workplace sexual harassment complaints can be settled in Victoria. NDAs remain available — but only where the complainant requests one, and only where the prescribed process is followed in full. For employers, the practical starting point is ensuring that anyone involved in responding to sexual harassment complaints understands the change, and that existing settlement documents and procedures are reviewed against the Act's requirements.

For guidance on specific cases or advice on updating NDA-related documents and processes, consult an employment lawyer familiar with Victorian workplace law.

Official sources:

• Victorian Government — Restricting Non-disclosure Agreements (Sexual Harassment at Work) Act 2025

• NDA Information Statement (June 2026)

• Notice of Termination form (June 2026)

• Victorian Legislation — Act number 51/2025

Last updated: July 2026