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Victoria Moves to Ban NDAs in Sexual Harassment Cases

In a groundbreaking move, the Victorian government is poised to implement sweeping reforms to protect victims of workplace sexual harassment. A recent government-led consultation has revealed overwhelming support for restricting the use of non-disclosure agreements (NDAs) in these cases, with nearly 90% of submissions backing the proposed changes.

Pressure on Young Victims to Stay Silent

The consultation, which received 46 written submissions, has shed light on the disturbing reality faced by many young workers who experience sexual harassment on the job. In one particularly alarming case, a 15-year-old girl working at a supermarket was allegedly pressured to sign an NDA after being subjected to inappropriate touching, isolation, and sexual advances by her much older supervisor.

Another young fast food worker, given the pseudonym Cath, signed an NDA and received less than $20,000 in compensation after being sexually assaulted by her manager. The agreement not only prevented her from suing her employer but also restricted her from discussing the incident with friends, former partners, or mental health professionals.

Calls for an Outright Ban

The majority of submissions to the consultation supported an outright ban on the use of NDAs in sexual harassment cases, unless specifically requested by the complainant. There was also broad backing for mandating independent legal advice for victims before signing such agreements and allowing disclosure to specific groups like family, health workers, and law enforcement.

NDAs are an unnecessary evil that has been present within the sector for a great many years.

– Financial Services Union submission

Business Groups Resist Reform

However, not all stakeholders are on board with the proposed changes. Several business groups, including the Australian Industry Group (Ai Group), opposed an outright ban on NDAs, arguing that they serve as a “legitimate alternative to litigation” that can be costly and traumatic for all parties involved.

These groups also expressed concern over the potential requirement for employers to provide independent legal advice to complainants, describing it as an “unfair and inappropriate cost burden.” Instead, they called for the development of guidelines to ensure the responsible and fair use of NDAs.

A Watershed Moment for Victim Rights

Despite the reservations of some business interests, the overwhelming support for reform among legal groups, trade unions, and the broader community suggests that significant change is on the horizon. As the first Australian state to commit to restricting NDAs in sexual harassment cases, Victoria is poised to set a powerful precedent for the rest of the nation.

The government is expected to release its official policy position in the near future, with legislation set to be introduced to parliament in 2025. This watershed moment could mark a crucial step forward in empowering victims to speak out, hold perpetrators accountable, and create safer, more equitable workplaces for all Victorians.

As the debate surrounding NDAs and their role in perpetuating a culture of silence around sexual harassment continues, all eyes will be on Victoria to see how this bold initiative unfolds. With the potential to reshape the landscape of workplace rights and protections, the state’s leadership on this issue could serve as a catalyst for nationwide reform.