New laws implemented in New South Wales mark a fresh approach to regulating sexual harassment and bullying in the NSW public sector. In a national first, these laws have expanded the jurisdiction of the NSW Industrial Relations Commission so that public sector workers can be awarded monetary compensation where workplace bullying or sexual harassment is established.

This differs from the Fair Work Commission approach where limited non-monetary remedies are available to stop bullying and sexual harassment in the workplace.

Diverging state-based approaches to regulating sexual harassment can also be seen in a recently announced Victorian bill aiming to restrict the use of non-disclosure agreements in workplace sexual harassment cases.

Key changes in NSW

From 13 October 2025, the Industrial Relations and Other Legislation Amended (Workplace Protections) Act 2025 (NSW) effectively established a new sexual harassment and anti-bullying jurisdiction in the NSW Industrial Relations Commission (IRC).

Public sector workers in NSW, including employees of schools, hospitals and local councils, can seek redress in the IRC for workplace bullying and sexual harassment. The IRC has been vested with a number of new powers, including the power to:

• conciliate and arbitrate stop bullying and sexual harassment disputes;
• award monetary damages of up to $100,000 to affected workers;
• issue stop orders to prevent ongoing bullying or harassment; and
• issue orders for public apologies or require employers to take specific actions to prevent future misconduct.

Penalties also apply for those who breach orders made in this jurisdiction, with penalties available of up to $18,870 for individuals and $93,900 for employers.

The underlying Industrial Relations Act 1996 (NSW) has been amended to now include a specific object to eliminate discrimination, bullying, and sexual harassment, and to address gender-based undervaluation of work. The reforms clarify the IRC’s powers to issue civil penalty orders for breaches of workplace protections and introduce a rebuttable presumption of detriment in victimisation cases, effectively shifting the burden of proof to employers.

Why are these changes significant?

These changes carry significant implications for employers in the NSW public sector. Employers should be prepared for increased scrutiny and should review and enhance internal complaint and dispute resolution mechanisms in order to avoid an influx of IRC claims.

NSW is now the first Australian jurisdiction to empower a state-based industrial tribunal to award monetary damages for bullying and sexual harassment.

Only time will tell whether this new jurisdiction gains more traction than its federal counterparts. The stop bullying and stop sexual-harassment provisions under the Fair Work Act 2009 (Cth) (FW Act) have proven to be less popular than the unfair dismissal and general protections provisions that allow for monetary remedy.

For example, the 2024-25 Fair work Commission Annual Report recorded 1,037 applications for an order to stop bullying and only 7 for an order to stop sexual harassment (noting that the stop sexual harassment jurisdiction was established in November 2021). This is dwarfed by the Fair Work Commission’s unfair dismissal jurisdiction which processed 16,500 applications in the same period.

Victorian bill to limit non-disclosure agreements

Legislative change is also on the horizon in Victoria. On 29 October 2025, a bill was proposed by the Victorian government to restrict the use of non-disclosure agreements (NDAs) in workplace sexual harassment cases. If passed into law, the Victorian approach will diverge from the approach across other Australian jurisdictions where confidentiality terms are commonly featured in settlement deeds.

The Victorian Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025 proposes to:

• prohibit the use of NDAs unless requested by the complainant;
• require mandatory information statements and a review period before a worker signs an NDA;
• prohibit employers to pressure or influence a worker to sign an NDA; and
• allow a worker to end an NDA after 12 months’ notice to another party.

This bill further demonstrates an increased appetite for innovative legislative reform at a state level.

Comparison between state and federal powers

The below table compares the new NSW jurisdiction with federal Fair Work Commission protections.

This article was written by Lily Schafer-Gardiner, Special Counsel, and Helena Tryphon, Law Graduate, and was reviewed by Brad Swebeck, Partner.