Business Groups Push Back Against NDA Restrictions in Sexual Harassment Cases

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Ndas,Sexual Harassment,Victorian Government

Victorian government consultation reveals widespread support for limiting non-disclosure agreements (NDAs) in sexual harassment cases. While legal centres highlight cases of young workers pressured into signing NDAs, business groups argue for responsible guidelines instead of outright bans, citing the cost and potential conflicts of interest associated with mandatory legal advice.

Business group submissions to state government’s review didn’t support an outright ban on non-disclosure agreements, describing them as a ‘legitimate alternative’ to litigation.Business group submissions to state government’s review didn’t support an outright ban on non-disclosure agreements, describing them as a ‘legitimate alternative’ to litigation.

They said requiring employers to provide independent legal advice would be an “unfair and inappropriate cost burden” on employers and could “create conflicts of interest”. However, they urged that non-disparagement clauses be excluded from any changes – which should not apply retrospectively – and businesses be given 12 to 24 months to prepare.

In its submission, the Young Workers Centre said it had represented dozens of young workers in relation to sexual harassment claims, including a 15-year-old girl it gave the pseudonym Dahlia. The submission also highlighted the case of Cath, a 20-year-old fast food worker who signed an NDA after being sexually assaulted by her manager and received a payment of less than $20,000.

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