The company confirmed to CNN Business that it will no longer require current or future employees to handle complaints against the company through an arbitration forum, rather than go to court. The policy change comes into force on 21 March and applies to all employees around the world.
Critics of the agreements claim that they help companies keep issues that vary from sexual violence to racism and age discrimination.
The first policy update did not apply to all discrimination requirements the new one makes.
Axios was the first to report the news of political change on Thursday.
Elimination of forced arbitration in harassment and discrimination cases is one of several sweeping changes. Google employees demanded coordinated protests at Google offices around the world on November 1 over the company's handling of sexual harassment.
Google said that the new policy will not apply to conflicts with past employees or those with prior claims. The company said it would notify suppliers with whom it contracts employees so that they can make decisions to implement similar policies.