NEW EMPLOYMENT RESTRICTIONS – STATE OF VICTORIA

If your business operates in Victoria, you need to be aware of the following:

Restrictions on NDAs concerning workplace sexual harassment

As of 1 July 2026, there are only very limited circumstances in which an employer can include an NDA in a settlement agreement concerning sexual harassment.

Unless certain preconditions are met, a settlement agreement can’t prevent an employee from speaking about their harassment.  Even if the preconditions are met and a settlement agreement is entered into, the employee may unilaterally end the NDA after 12 months.

The preconditions are:

1. NDA initiated by complainant as their express preference: An employer can’t require an employee to sign an NDA – it may only be requested by the employee concerned.
2. NDA Information Statement provided: The complainant must be provided with the standard Government Information Statement.
3. Review period: The complainant must be given 21 days to review the proposed NDA before they sign the agreement, unless they waive their right to do so.
4. Acknowledgement of preconditions form: Before signing the NDA, each party must sign the standard Government form acknowledging that the preconditions have been met.
5. No undue influence or pressure: The employee must not be subjected to undue influence or pressure in relation to the matter.

Right to work from home – For up to two days per week

A Bill amending the Equal Opportunity Act 2010 (Vic) allowing employees the right to work from home is expected to commence on 1 September 2026.

If passed, the law would give an eligible employee a right to work from home for up to two days per week (pro-rated for part-time employees).  This is a step further than the entitlement under the Fair Work Act which, as in New Zealand, gives employees in specified circumstances eligibility to request flexible working arrangements.

Some employees who would not be eligible under the proposed legislation are those that are:

• on probation,
• undertaking an apprenticeship, traineeship, internship, graduate programme or similar programme,
• those who are eligible under the Fair Work Act, to request flexible working arrangements, and
• a casual employee.

An eligible employee would be required to give written notice to their employer setting out the days and times they intend to work from home.  Employers would have to respond in writing within 21 days and may only refuse or limit the entitlement where it is not reasonable for the employee to work from home, assessed against factors including:

• the inherent requirements of the role;
• whether there would be significant adverse impacts on productivity, safety, supervision, customer service or confidentiality; or
• where the arrangement imposes excessive costs or impractical changes. 

Any adverse impact would need to be significant.