There are concerns the binding legal agreements, which often stop complainants from revealing their abuse to anyone, are being misused to silence victims and protect perpetrators or their employers.
Victim-survivors, business groups, workers and legal experts have been asked to weigh in on proposed reforms, with community consultation open until September 8.
Banning agreements unless requested by a victim, stamping out pressures to sign them, reviewing "cooling-off" periods and allowing people to speak openly to medical or legal professionals are among the changes being considered.
Victorian Premier Jacinta Allan says non-disclosure agreements are being used to silence people. (Diego Fedele/AAP PHOTOS)
"Non-disclosure agreements are being used too often to silence victim-survivors, to protect the perpetrators," Premier Jacinta Allan told reporters in Melbourne on Monday.
"It means we too can't get a line of sight on repeat patterns of behaviour in particular workplaces."
The legislation has been in the works since July 2022, when the government accepted 21 of 26 recommendations in full, in part or in principle from a ministerial taskforce on workplace sexual harassment.
Other key recommendations included treating sexual harassment as an occupational health and safety (OHS) issue, having WorkSafe take a lead role in its prevention and response, and allowing workers and unions to initiate civil proceedings for OHS breaches.
Maurice Blackburn Lawyers senior associate Jessica Dawson-Field said non-disclosure agreements cause increasing distress to victims and stop employers from making changes to workplace culture.
She said the indefinite agreements are used more often than not to settle cases, and some victim-survivors realise they cannot speak to their families about their abuse or get support.
Senior associate Jessica Dawson-Field says non-disclosure agreements can cause victims distress. (Diego Fedele/AAP PHOTOS)
"Often people don't realise how this will impact them at the time," Ms Dawson-Field said.
"This is one of those cases where people need to have options and make informed choices."
Workplace sexual harassment is covered under both federal and state legislation, with Victoria considering laws similar to those operating in Prince Edward Island province in Canada's east.Â
Victorian Trades Hall assistant secretary Wilhelmina Stracke said the proposed reforms would stop bosses from coercing workers into silence. She said the agreements are used as a default.
"They've become so standard that no one even questions whether or not they should be there," Ms Stracke said.
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