Australia
Victoria - Restrictions on use of NDAs in workplace sexual harassment cases
Impact date: The Bill was passed in December 2025, and will come into force on 20 May 2026.
In December 2025, the Victorian Government passed the Restricting Non-disclosure Agreements (Sexual Harassment at Work) Bill 2025.
The Bill is aimed at regulating and restricting the use of 'workplace non-disclosure agreements' (NDAs) in relation to allegations of workplace sexual harassment.
Key provisions in the Bill include:
- a prohibition on NDAs unless requested by the person complaining of sexual harassment ('complainant'), and it is their express wish and preference to enter into one
- a requirement for NDAs to be drafted in plain language
- the right for complainants to terminate an NDA after 12 months without repayment of any financial settlement
- the ability for complainants to disclose to certain individuals and entities, including Victoria Police, friends and family members, support organizations and legal and medical professionals notwithstanding the terms of the NDA
- a prohibition on employers exerting undue pressure or influence on complainants to enter into an NDA (including offering the complainant a higher settlement amount if they request an NDA or refusing to provide the worker with a work reference unless they agree to an NDA) and
- requiring an employer to provide a complainant with a mandatory information statement published by the Victorian Government and allowing the complainant a cooling-off period of at least 21 days before entering into an NDA
The legislation is not retrospective – accordingly, it does not affect the enforceability of NDAs executed before 20 May 2026.
Employer implications/action needed Employers should be aware of the new restrictions on the use of NDAs for Victorian-based employees in the context of workplace sexual harassment allegations, including appreciation of limitations on the continued operation even if lawfully entered into.
Employer risk If employers do not comply with the above requirements, the employee can give the employer a 'breach notice'. The employer will then have 30 days to confirm that the Act was complied with. Otherwise, the NDA will be unenforceable. The Bill does not include any financial penalties that could be imposed on an employer for non-compliance.
FWC amends awards in light of gender undervaluation review
Impact date: Between January 2026 and March 2026, depending on the award. The Fair Work Commission (FWC) has made changes to various awards as part of its 'gender undervaluation review'.
The affected Awards are:
- Aboriginal and Torres Strait Islander Health Award
- Children’s Services Award
- Pharmacy Award
The FWC also proposes to make changes to the following awards:
- Health Services Award
- Social, Community, Home Care and Disability Services Award
These changes arose out of a review into 'gender undervaluation' which refers to the systemic lower compensation associated with work primarily performed by women.
These changes include a more simplified award classification structure that will also recognize more senior roles, as well as staged wage increases, to more accurately reflect the value of the affected roles.
Employer implications/action needed Employers who engage employees covered by any of the affected awards should remain aware of the changes and review their business practices and employee award classifications to ensure compliance.
Employer risk Failure to comply with the provisions of a modern award can result in significant financial penalties, as well as potential criminal charges for 'wage theft' offences.
NSW Passes Digital Work Systems Bill
Impact date: The date the Bill receives assent. On 12 February 2026, the NSW Parliament passed the Work Health and Safety Amendment (Digital Work Systems) Bill 2025.
The Bill amends the Work Health and Safety Act 2011 (NSW) by introducing a 'digital work system duty' which will require employers to ensure, so far as is reasonably practicable, the health and safety of workers is not at risk by using a 'digital work system' at work, which is defined as 'an algorithm, artificial intelligence, automation or online platform'.
The employer must consider whether the digital work system creates or results in any of the following risks:
(a) excessive or unreasonable workloads for workers at work in the business or undertaking
(b) the use of excessive or unreasonable metrics to assess and track the performance of workers at work in the business or undertaking
(c) excessive or unreasonable monitoring or surveillance of workers at work in the business or undertaking and/or
(d) unlawful discriminatory practices or decision-making in the conduct of the business or undertaking
The Bill also expands the powers of union officials, enabling them to access digital work systems, including emails, algorithmic tools and other digital platforms, when investigating suspected work health and safety breaches.
Employer implications/action needed Employers should review their current digital work systems practices, and begin considering effective control measures to prevent the risks identified above, including updating WHS policies and consulting with employees.
Employer risk Employers may be prosecuted for failing to identify and implement controls against these risks.
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