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.
Corporate bullying can quietly erode culture, productivity and trust. It can also cause real harm to the people involved. Whether you’re an owner, manager or employee, understanding how workplace bullying is defined under Australian law - and what you can do about it - is essential for a safe, compliant and high‑performing workplace.
Bullying can be subtle or overt. It might go unchecked for months, creating anxiety, absenteeism and staff turnover. The good news is there are clear legal pathways to tackle it, and practical steps you can take to prevent it before it starts.
In this guide, we’ll explain what workplace bullying looks like in Australia, how it differs from reasonable management action and harassment, your legal options if it occurs, and the policies and documents that help you respond properly.
What Is Corporate Bullying In Australia?
Corporate bullying (also called workplace bullying) is repeated, unreasonable behaviour directed towards a worker or group of workers that creates a risk to health and safety. It can come from a manager, a co‑worker, a contractor, or be perpetuated by systems or norms within the organisation.
This definition aligns with the Fair Work Commission’s framework and with work health and safety (WHS) principles. In Australia, employers and other PCBUs (persons conducting a business or undertaking) have a duty to provide a safe workplace and to manage psychosocial hazards, which include bullying.
Examples Of Bullying Behaviour
- Verbal abuse: Shouting, swearing, name‑calling, belittling or humiliating comments.
- Intimidation or threats: Menacing gestures, blocking movement, or statements that imply harm to someone’s role or reputation.
- Unreasonable work demands: Setting impossible deadlines, moving goalposts or excessive scrutiny not applied consistently.
- Exclusion and isolation: Deliberately withholding key information, excluding someone from meetings, or freezing them out socially.
- Undermining and sabotage: Spreading rumours, micro‑managing to a punitive degree, or setting someone up to fail.
The conduct must be repeated and unreasonable, and it must create a risk to health and safety. A single incident, while inappropriate, will not usually meet the legal threshold for bullying (though it can still warrant action under your policies).
How Do You Recognise Bullying Vs Reasonable Management?
Not every disagreement or difficult conversation is bullying. Australian law recognises that managers need to direct work and address performance. The distinction matters - both for culture and for compliance.
What Is Not Workplace Bullying?
- Reasonable management action: Lawful and reasonable directions, performance feedback, disciplinary action, or workplace change delivered in a reasonable manner.
- Single incidents or friction: One-off rudeness or a difference of opinion, unless it becomes a pattern that creates risk to health and safety.
- Organisational change done properly: Restructures, roster changes or role redesign undertaken with a fair process and appropriate consultation.
A practical test is whether the conduct serves a legitimate work purpose and is carried out fairly. For example, a performance meeting that is clear, respectful and evidence‑based will generally be considered reasonable management action - even if it’s uncomfortable.
Bullying vs Harassment
Bullying does not require a link to a protected attribute. Harassment often does. If conduct targets someone because of protected characteristics (such as sex, race, disability, age or religion), it may amount to unlawful discrimination or sexual harassment under state, territory or federal laws, even if it is a single incident.
In practice, behaviour can be both bullying and harassment. If you suspect discrimination, it’s wise to seek guidance from an employment lawyer early so you can choose the right pathway to address it.
What Are Your Legal Options If Bullying Occurs?
Workers and employers have several avenues to address bullying. The right option will depend on the conduct, its impact, and what’s already been tried internally.
1) Internal Complaint And Investigation
The first step is usually to raise the issue internally. Most workplaces set out complaint channels in a code of conduct, grievance policy, or staff handbook. An internal process should be timely, impartial and procedurally fair. This generally involves notifying the parties, gathering evidence, giving each person an opportunity to respond, and making findings with reference to policy and evidence.
Where allegations are serious, you may need to separate the parties during the process. In some cases, standing down an employee pending investigation can be appropriate to manage risk while ensuring fairness.
2) Stop-Bullying Orders (Fair Work Commission)
Workers in a constitutionally-covered business can apply to the Fair Work Commission (FWC) for an order to stop bullying. The FWC’s role is to decide applications and, if satisfied bullying is occurring and may continue, to make orders aimed at prevention. It does not award compensation for bullying.
Orders are tailored to the situation. They might require changes to reporting lines, communication rules, rostering, training, or participation in a mediation or facilitated conference. Importantly, the FWC focuses on stopping the behaviour - not punishing people.
3) Work Health And Safety Pathways
Bullying is a psychosocial hazard. PCBUs must eliminate or minimise risks so far as reasonably practicable. If a business fails to manage bullying risks, state or territory WHS regulators can investigate and take compliance action. Internally, managers should proactively assess these risks, consult workers, and put control measures in place (such as training, safe reporting channels and clear policies).
4) Anti-Discrimination Complaints
If the behaviour is connected to a protected attribute, a complaint can be made to the relevant state or federal anti‑discrimination body. These matters can lead to conciliation and, in some cases, compensation or enforceable undertakings in addition to workplace changes.
5) Workers’ Compensation And Injury Management
Where bullying causes a psychological injury, workers may be entitled to workers’ compensation and support to return to work. Employers have legal obligations around early intervention, suitable duties and confidentiality. Supporting an employee through stress or mental health concerns is also simply good practice; many employers document their approach in policies alongside guidance on managing stress leave.
6) General Protections And Other Claims
Workers are protected from adverse action (like dismissal or detrimental changes to their role) because they’ve exercised a workplace right - for example, making a bullying complaint. Inappropriate retaliation can give rise to general protections claims under the Fair Work Act. In some situations, there may also be claims related to contract, privacy or defamation, depending on the facts.
Choosing the right path can be complex, especially when multiple legal issues overlap. If in doubt, it’s sensible to speak with an employment lawyer before escalating a matter externally.
A Practical Process To Respond (For Workers And Employers)
Acting early and following a clear process protects people and reduces legal risk. Here’s a structured approach that works in most situations.
Step 1: Document What’s Happening
Record dates, times, details and witnesses. Keep relevant emails or messages. If you’re a manager receiving a complaint, note your conversations and decisions as you go. Good records support a fair and defensible outcome.
Step 2: Check Your Policies And Reporting Channels
Look to your code of conduct, bullying and harassment procedures, and grievance process for the right pathway. If you don’t have a consolidated set of policies, a staff handbook can bring these together so everyone knows what to do and who to speak to.
Step 3: Attempt Informal Resolution (If Safe)
Sometimes issues can be resolved informally - a clarifying conversation, a facilitated discussion, or a manager resetting expectations. This isn’t appropriate for all cases, particularly where there’s a power imbalance or serious allegations.
Step 4: Make (Or Receive) A Formal Complaint
Where needed, lodge a written complaint or commence a formal process. As an employer, design an investigation that is proportionate to the allegations. Carefully select an investigator (internal or external), define the scope, gather evidence and keep the parties informed.
Step 5: Ensure Procedural Fairness
Everyone involved should have a fair chance to respond to evidence before findings are made. This often involves issuing a clear allegation summary and inviting a response - a stage many employers manage with a structured show cause letter.
Step 6: Decide On Outcomes And Follow Through
If bullying is substantiated, outcomes might include training, coaching, changes to duties or reporting lines, written warnings or termination in serious cases. Where termination is contemplated, ensure the process aligns with your contracts, policies and the Fair Work Act, and document your reasoning to manage unfair dismissal risk.
Step 7: Address Psychosocial Risks And Monitor
Beyond individual outcomes, consider what system issues allowed the conduct to continue. Review workloads, supervision, communication practices and training. This goes to your WHS duty and your broader duty of care as an employer.
Policies, Training And Documents Every Workplace Should Have
You can’t eliminate every conflict, but the right policies and documents make it far easier to prevent problems and respond lawfully when they arise. At a minimum, most workplaces will benefit from the following.
- Code Of Conduct: Sets the standard for respectful behaviour, including examples of bullying and harassment and clear expectations for managers.
- Bullying And Harassment Policy: Defines unacceptable conduct, outlines the complaint process, and explains how the business manages confidentiality, victimisation and support. Many businesses include protections for people who speak up through a Whistleblower Policy where applicable.
- Grievance Procedure: Explains how informal and formal complaints are handled, timeframes, investigation steps and escalation pathways.
- Employment Contracts: Align contracts with your policies, confidentiality obligations, lawful directions and disciplinary processes. Having a clear Employment Contract helps set expectations from day one.
- Staff Handbook: A central source of truth that brings your policies together and makes them easy to access and update via the Staff Handbook Package.
- Investigation And Disciplinary Templates: Practical tools such as allegation notices, interview scripts and warning letters support consistent process. Many employers maintain an Employee Termination Documents Suite so outcomes are documented clearly when required.
These documents are not a tick‑box exercise. They should reflect your culture and operations, and they should be backed by regular training for leaders and staff. Most importantly, they should be used - not just stored on an intranet.
Training And Culture
- Lead from the top: Executives and managers must model respectful behaviour and intervene early.
- Clarify roles and workloads: Ambiguity and overload are common precursors to conflict and poor behaviour.
- Enable safe reporting: Offer multiple channels to raise issues, protect against victimisation, and acknowledge complaints promptly.
- Check in regularly: Use team meetings, one‑on‑ones and pulse surveys to surface issues early.
Embedding these practices demonstrates that you take WHS and people safety seriously, and it significantly reduces the likelihood of disputes escalating to regulators or the FWC.
Key Takeaways
- Workplace bullying is repeated, unreasonable behaviour that creates a risk to health and safety; it’s different from reasonable management action carried out fairly.
- There are multiple legal pathways to address bullying in Australia: internal investigations, Fair Work Commission stop‑bullying orders, WHS regulator involvement, anti‑discrimination complaints and workers’ compensation.
- Process matters - document issues, follow a fair investigation, and use clear steps like allegation notices and show cause letters before deciding outcomes.
- Prevention starts with culture and is supported by practical tools: a code of conduct, bullying and grievance policies, robust Employment Contract terms, and a current staff handbook.
- Managing psychosocial risks is a WHS duty. Review workloads, systems and leadership behaviours regularly to meet your duty of care and protect your team.
- If a matter escalates or involves overlapping legal issues, get early advice from an employment lawyer to choose the right pathway and reduce risk.
If you would like a consultation on preventing or responding to corporate bullying and ensuring your business is legally protected, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
