Rise of NDAs in sexual harassment cases silencing women

Maeve Bannister |

Non-disclosure agreements can be misused to cover up cases of sexual harassment, advocates say.
Non-disclosure agreements can be misused to cover up cases of sexual harassment, advocates say.

Women who experience sexual harassment at work are often being silenced by legally binding agreements, with many companies using the contracts as standard practice.

Advocates are calling for law reform to ensure non-disclosure agreements (NDAs) aren’t being misused in workplace sexual harassment and discrimination settlements.

Under the Work Health and Safety Act, workplaces have a duty to ensure employees are not exposed to psychosocial hazards, including sexual and gender-based harassment.

But blanket NDAs can prevent employees who have experienced sexual harassment at work from ever being able to talk about their experiences.

This can extend to being barred from talking to trained healthcare professionals.

If a victim-survivor changes their mind and wants to speak out or seek further help, the employer or perpetrator can apply for a court action to stop them, risking the employee having to pay damages or legal costs.

Working Women’s Centre is a national body advocating for fair and safe workplaces for women, with advisors often helping women navigate an NDA.

While the agreements can sometimes be beneficial to both an employee and employer, their use has become standard across workplaces, Working Women Queensland director Eloise Dalton said. 

“When they’re signed it can perpetuate the silencing of women and cover up systemic issues,” she told AAP.

“We are calling for an inquiry to be held into how NDAs are used in the workplace, as the first step towards state and federal law reform. 

“There is an urgent need to introduce legislation that restricts strict or blanket NDAs to prevent their misuse in workplace sexual harassment and discrimination settlements.” 

The proposed law changes would recommend NDAs only be enforceable if victim-survivors had sought and received independent legal advice from practitioners who had undergone specific trauma-informed training. 

The duration of NDAs should also be limited, allowing victim-survivors to waive the agreement within a reasonable time frame.

Siobhan, a single mum of five, signed an NDA after being made redundant when she complained of workplace sexual harassment. 

She said she did not realise at the time the toll that signing an NDA would take on her mental health past the settlement stage.

“At the time I felt like I didn’t have a choice – if I didn’t agree to sign a confidentiality clause, the settlement would not have been agreed to and I would have been facing a long and painstaking legal battle for acknowledgement and compensation,” she said.

“Victims shouldn’t be faced with an ultimatum in order to get closure.” 

It’s a similar story for Toowoomba local Billy, who had to change industries after being sexually harassed by a manager. 

“I believe the only intention of an NDA is to silence the victim and protect the company,” she said.

“Having an NDA means you have to keep your experience to yourself and that what happened to you is your shame to carry.” 

Working Women Queensland is calling for the Queensland attorney-general to launch an inquiry into the misuse of NDAs in the workplace, as the first step towards state and federal law reform.

1800 RESPECT (1800 737 732)

National Sexual Abuse and Redress Support Service 1800 211 028

AAP