A recent Federal Court ruling has shaken up the HR world, awarding a record $305,000 in damages to a worker who endured repeated sexual harassment. This case highlights the urgent need for businesses to take proactive steps to prevent harassment in the workplace.
Here are the key lessons for leaders and HR teams.
The supervisor in this case was never touched, but was shown pornographic videos, asked about her sex life, and subjected to sexual comments. The court confirmed this still meets the definition of sexual harassment. If behaviour would reasonably cause offence, humiliation, or intimidation — it’s unlawful.
The payout included:
The message is clear: courts will impose heavy penalties.
Since December 2022, the Sex Discrimination Act places a positive duty on employers. It’s no longer enough to react once a complaint is made. Employers must show they are taking proactive steps to ensure the workforce understands their obligations regarding acceptable behaviour in the workplace. Taking all reasonable steps to prevent the harassment from occuring looks like:
Policies and training don’t mean much if everyday culture is full of “banter” or sexist jokes. Even if remarks aren’t aimed at one person, they can create a toxic and/or unsafe work environment which exposes the business to risk.
Generic global e-learning isn’t enough. Training should be tailored to Australian law, ideally in person, and cover sexual harassment, harassment on the basis of sex, and hostile work environments.
This case was the first test of the new laws. While the claim failed because comments weren’t directed at the worker, the court noted offensive conversations could leave employer’s culpable. Inappropriate and Sexist banter is a red flag and creates an environment where these claims can more easily arise.
The offender argued that because the worker kept showing up to shifts, she couldn’t have been offended. The court found this caused further harm and added to the damages. Behaviour during investigations and hearings matters — it can make things worse.
Employers must go beyond the basics:
If a claim is made against your leaders and your organisation, in order to successfully defend against the claim, you will demonstrates that the organisation took proactive measures and that those efforts thorough and genuine.
This Federal Court ruling is a strong reminder to all leaders: it’s not enough to say you have policies in place. Leaders must support the policies by training their people and confirming their understanding, ensuring the culture is positive and aligned, and take swift and decisive action. Prevention is always cheaper — and better — than cure.
At Beyond The Curve, we work with businesses to:
If you’d like support in creating a safe, compliant, and respectful workplace, reach out to us at HR@beyondthecurve.com.au or call 0411 662 216.
