Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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Running a small business means you’re juggling a lot - hiring, rostering, customers, cash flow, and building a team culture you’re proud of.
At the same time, the legal landscape around workplace behaviour has shifted in a big way. In particular, recent changes to sexual harassment laws in Australia mean employers are expected to be more proactive than ever. It’s no longer just about responding when a complaint happens. Increasingly, the law expects you to prevent sexual harassment (and related harmful conduct) from happening in the first place.
This practical guide breaks down what has changed, what it means for small business owners, and the steps you can take to reduce risk and build a safer workplace.
What Are The Key Changes To Sexual Harassment Laws In Australia?
The recent reforms are largely linked to the Respect@Work reforms, including updates to the Sex Discrimination Act 1984 (Cth) (and related federal discrimination laws) and changes to the Fair Work Act 2009 (Cth).
While the details can get technical, the practical message is simple: employers need to take active steps to prevent sexual harassment and other sex-based harmful behaviour at work.
A New “Positive Duty” To Prevent Sexual Harassment
One of the most important changes is the introduction of a positive duty for employers and other organisations to take reasonable and proportionate measures to eliminate:
- sexual harassment
- sex-based harassment
- hostile workplace environments on the ground of sex
- certain related acts of victimisation
In plain English: it’s not enough to have a policy sitting in a folder. You need to be able to show you’ve taken steps that make sense for your workplace to stop problems occurring.
Greater Focus On “Hostile Work Environment” And Sex-Based Harassment
The reforms don’t just target “classic” one-on-one harassment scenarios.
They also address broader workplace issues, including environments that are intimidating, humiliating or offensive on the basis of sex - even if no specific person is singled out. This means workplace culture, jokes, comments, group chats, posters, “banter”, and repeated patterns of behaviour matter much more from a legal risk perspective.
Fair Work Act Protections And Dispute Pathways
The Fair Work Act now includes stronger sexual harassment provisions. For example, workers may be able to apply to the Fair Work Commission for orders to stop sexual harassment (similar in concept to stop bullying orders) and there are clearer pathways for disputes to escalate if issues aren’t handled appropriately.
For employers, the practical impact is that complaints may escalate more quickly into a formal process if they aren’t handled promptly and properly.
The Regulator Can Take A More Active Role
The Australian Human Rights Commission (AHRC) has a more direct role in relation to the positive duty, including the ability to inquire into compliance and (in some circumstances) take enforcement steps.
For small businesses, this reinforces the need to treat prevention as an operational priority - like safety, payroll compliance, and privacy - not just an HR “nice to have”.
What Do These Changes Mean For Small Business Employers Day-To-Day?
If you’re a small business owner, you might be thinking: “We’re not a big corporate - how are we supposed to manage this?”
The law doesn’t expect you to have the same systems as a 5,000-person organisation. But it does expect you to take steps that are reasonable for your size, industry, and risk profile.
You Need To Be Proactive (Not Just Reactive)
A reactive approach usually looks like:
- you only talk about harassment when a complaint comes in
- you don’t train staff because “everyone knows how to behave”
- your policy exists, but nobody can find it (or understands it)
A proactive approach looks like:
- you set expectations from day one
- you train leaders and staff in practical, workplace-specific scenarios
- you create safe, clear reporting channels
- you review risk areas (like customer-facing work, late shifts, isolated work, power imbalances, events with alcohol, etc.)
Workplace Behaviour Is A Business Risk (Like Safety And Wages)
Sexual harassment issues can lead to:
- legal claims and costly disputes
- regulatory investigations
- lost productivity and staff turnover
- reputational damage (especially in small communities and online)
- flow-on risk in unfair dismissal or general protections disputes if a termination or disciplinary action is mishandled
That’s why it’s worth treating these sexual harassment law changes as part of core business compliance - not just a HR issue.
Leaders And Managers Need Special Attention
Even in a small business, “leaders” can include supervisors, shift managers, team leaders, and senior staff who train juniors.
If your managers don’t know how to respond to inappropriate behaviour or a complaint, you can end up with:
- delayed responses
- informal “off the record” handling that escalates risk
- accidental victimisation (for example, changing someone’s shifts after they raised an issue)
This is why your Workplace Policy and training should include clear instructions for managers on what to do and what not to do.
A Practical Compliance Plan For Employers (Step-By-Step)
If you want a practical plan you can implement without getting overwhelmed, start here.
1) Identify Your Risk Areas
Every workplace is different. A good starting point is to map where risks may arise, such as:
- customer interactions (especially where staff are alone with customers)
- workplaces with alcohol (venues, events, hospitality functions)
- power imbalances (junior staff, apprentices, interns, visa workers)
- after-hours communications (group chats, DMs, social media)
- isolated or remote work
- work travel, conferences, or off-site events
Once you know where the risk is, you can put controls in place that make sense.
2) Set Clear Standards Of Behaviour (In Writing)
Most small businesses rely on “common sense” and good intentions - but legal compliance needs clarity. Make sure your expectations are written down and easy to access.
For many employers, this sits in a staff handbook and core policies, including harassment, discrimination, bullying, and workplace conduct. A Staff Handbook can be a practical way to bring these expectations into one place, especially as you grow beyond a handful of staff.
3) Update Contracts And Onboarding So Expectations Start On Day One
Prevention starts with onboarding. Your induction process should include:
- behaviour expectations and what counts as sexual harassment
- how to raise issues (including confidential options)
- what you will do if an issue is raised
This is also where well-drafted documentation helps. An Employment Contract can reinforce workplace conduct expectations and give you a stronger foundation to manage conduct issues if they arise.
4) Provide Training That Matches Your Workplace
Training shouldn’t be a one-off tick-the-box exercise. It should be practical and relevant to your team.
For example, a retail team may need training on customer harassment and how managers should step in. An office team may need guidance on team chats, meetings, and professional boundaries. A construction or trade environment may need targeted training on respectful communication, language, and site culture.
Keep records of training and refresh it periodically, particularly when you promote someone into a leadership role.
5) Create Safe, Clear Reporting Channels
Staff should know exactly how to report concerns, including options like:
- reporting to a direct manager (where appropriate)
- reporting to an alternative manager or owner (if the direct manager is involved)
- reporting to a designated HR contact (internal or external)
Make sure staff understand you will treat reports seriously and that retaliation (victimisation) is not acceptable.
6) Review, Improve, Repeat
Compliance isn’t a one-time “set and forget” task.
It’s a good idea to schedule periodic check-ins (for example, every 6–12 months) to review whether your policies, training and reporting channels still fit your business as it changes.
How Should You Handle A Complaint Or Allegation In Practice?
Even with strong prevention steps, issues can still arise. When they do, your response matters.
The aim is to act promptly, fairly and consistently - and to protect everyone involved while you work out what happened.
Step 1: Take It Seriously And Respond Quickly
Delays are one of the most common risk points. If someone raises a concern, acknowledge it promptly and outline next steps.
Even if you don’t have all the answers yet, you can explain:
- who will handle the matter
- how confidentiality will be managed (as far as possible)
- what support options are available
- the immediate measures you may put in place to prevent further issues
Step 2: Consider Interim Measures (Without “Jumping To Conclusions”)
Sometimes you need to take temporary steps while you investigate, such as changing reporting lines, adjusting shifts, or separating parties.
Be careful here: interim steps should reduce risk, not punish someone before findings are made. In some situations, you may consider suspending an employee pending investigation, but it needs to be handled carefully and consistently with your contract, policies and procedural fairness expectations.
Step 3: Investigate Fairly And Document Your Process
A fair process generally includes:
- clarifying the allegations (what happened, when, where, who was involved)
- giving the respondent a genuine opportunity to respond
- interviewing relevant witnesses
- reviewing evidence (messages, CCTV where lawful, rosters, etc.)
- making findings on the balance of probabilities
- keeping good records of what you did and why
For some matters, it may be appropriate to use an external investigator, especially where there are conflicts of interest or serious allegations.
Step 4: Take Appropriate Action If Allegations Are Substantiated
Outcomes can range from training and counselling through to formal warnings or termination, depending on severity.
If you’re moving into a disciplinary process, a show cause letter can be an important step in providing procedural fairness and clearly outlining the allegations and the potential consequences.
If termination is on the table, take care: the legal risk often isn’t just the underlying conduct - it’s how the process was handled. If you need help navigating this, it’s worth speaking with an employment lawyer early.
Step 5: Prevent Victimisation And Manage The Aftermath
After a complaint, your workplace can feel tense. It’s important to ensure:
- the person who raised the issue is not disadvantaged because they spoke up
- gossip and retaliation are addressed quickly
- managers know how to support staff and maintain professional boundaries
- you address any broader cultural issues that contributed to the behaviour
What Documents And Policies Should You Have In Place?
With the recent changes to sexual harassment laws, your documents matter because they show what standards you set and how you planned to enforce them.
While every business is different, these are common foundations for small business employers.
- Workplace Policies: clear rules on sexual harassment, sex-based harassment, bullying, discrimination, complaint handling, and consequences for breaches (often consolidated through a Workplace Policy framework).
- Staff Handbook: a practical, central place for staff to find behaviour expectations, reporting pathways, and workplace procedures (many employers use a Staff Handbook to keep this organised and scalable).
- Employment Contracts: tailored terms that support lawful management of misconduct, confidentiality expectations, and workplace conduct standards (your Employment Contract should align with your policies and practices).
- Investigation And Disciplinary Templates: tools like meeting invite letters, written warnings, and show cause letters so you can respond promptly and consistently.
- Training Materials And Attendance Records: evidence you’ve trained staff and managers and refreshed that training over time.
The right documentation won’t fix a culture problem by itself - but it gives you structure, clarity, and evidence that you took reasonable steps.
Key Takeaways
- Recent changes to sexual harassment laws in Australia mean employers are expected to take proactive steps to prevent sexual harassment and related harmful conduct, not just respond after the fact.
- A positive duty approach is practical: identify risk areas, implement controls, train staff, and make reporting pathways clear.
- Policies need to be usable in real life - staff should understand them, managers should know how to apply them, and you should be able to show what you’ve done.
- When complaints arise, acting promptly, investigating fairly, and documenting your process can significantly reduce legal and commercial risk.
- Strong foundations like a Workplace Policy, Staff Handbook, and Employment Contract help you set expectations and manage issues consistently as you grow.
This article provides general information only and does not constitute legal advice. For advice tailored to your business and circumstances, speak with a qualified lawyer.
If you’d like help updating your documents or sense-checking your approach to the changes to sexual harassment laws, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
