Victoria is set to implement ground-breaking restrictions on the use of non-disclosure agreements (NDAs) in cases of workplace sexual harassment.
Announced by the Allan government on Monday, this initiative represents a significant step toward addressing the misuse of NDAs, which have been criticised for silencing victims and protecting perpetrators and employers.
The government will begin a four-week consultation process to gather input on how the new laws should be structured. This consultation will involve victim-survivors, businesses, unions, workers, and legal experts.
Premier Jacinta Allan expressed strong disapproval of the current misuse of NDAs, stating that they are frequently employed to shield perpetrators and maintain employers’ reputations at the expense of victim-survivors. Allan emphasised, “That’s wrong, that’s got to stop.”
Currently, NDAs, or confidentiality clauses, are used to prevent the sharing of sensitive information and are common in both workplace harassment cases and business deals. While they are often used to resolve workplace sexual harassment claims with compensation, they can also be used to keep business information secret.
In Victoria, the focus will be on restricting NDAs in harassment cases rather than extending these restrictions to other areas.
The proposed reforms may include banning NDAs unless specifically requested by the complainant, allowing individuals to waive their confidentiality later, or enabling them to disclose details to trusted parties such as legal professionals, medical and mental health workers, or union representatives.
A ministerial taskforce recommended these changes in 2022, and while the government accepted the recommendation, action has only recently begun. Victoria Trades Hall Council assistant secretary Wil Stracke praised the initiative as a step forward in ending workplace harassment, asserting that it will prevent employers from coercing workers into silence.
Maurice Blackburn Lawyers senior associate Jessica Dawson-Field highlighted that NDAs often contribute to the distress of victims, and victim-survivor Kim noted that NDAs allow perpetrators to avoid consequences, enabling continued harmful behaviour.
