Does Reasonable Management Action Count as Bullying in Australia?

As an employer, you’re expected to lead, set standards and make tough calls. But if a worker says they’re being bullied, you might worry that ordinary performance management could be misinterpreted.

A common question we hear is whether “reasonable management action” is an example of bullying. The short answer: no - when it’s carried out in a reasonable way. Getting this distinction right will help you manage your team confidently, meet your work health and safety duties, and reduce legal risk.

In this guide, we unpack what the law considers workplace bullying in Australia, what “reasonable management action” really means in practice, and how to handle performance issues and complaints safely and fairly.

What Is Workplace Bullying Under Australian Law?

Under Australia’s workplace laws, bullying generally involves repeated, unreasonable behaviour directed at a worker or group of workers that creates a risk to health and safety. It can be verbal, physical, social or psychological. Importantly, it must be more than a one-off conflict or a difficult conversation.

As a business owner, you also have a duty to provide a safe workplace. That includes managing psychosocial risks and responding to bullying complaints promptly. If you ignore warning signs or don’t have a clear process, you can face legal and reputational consequences - even if your intention was simply to “sort it out informally”.

Is Reasonable Management Action An Example Of Bullying?

This is the key distinction for employers. Reasonable management action, carried out in a reasonable manner, is not bullying.

In other words, you’re allowed to manage performance, give constructive feedback, direct work, set deadlines, decline leave, restructure teams and address misconduct - provided the action itself is reasonable and the way you implement it is fair, proportionate and respectful.

If a worker alleges bullying, the question becomes: was the behaviour unreasonable, repeated, and a risk to health and safety? And if it was management action, was it still “reasonable” in both substance and method? The nuance sits in the facts - which is why clear documentation and a consistent process matter.

Reasonable Management Action: Examples For Employers

Here are common scenarios that usually fall within reasonable management action when handled appropriately.

Setting Expectations And Providing Feedback

Explaining role duties, KPIs, deadlines, and quality standards is normal management. So is giving timely, specific feedback about gaps in a worker’s performance, including in a formal meeting.

Be clear, stick to observable facts, and agree on next steps. Provide support such as coaching or training where appropriate, and document the discussion in line with your internal Workplace Policy.

Managing Underperformance

Placing someone on a performance improvement plan (PIP) can be reasonable if there’s a genuine performance concern and you follow a fair process. Give the worker notice of the issue, a chance to respond, and reasonable time and support to improve.

Many employers find it useful to follow a structured performance management process to ensure consistency and transparency.

Lawful And Reasonable Directions

You can ask employees to follow workplace procedures, attend meetings, use certain tools or systems, work allocated shifts, or perform duties within their role (and within the scope of any award or agreement). Directions should be lawful, safe and necessary to the business.

Discipline For Misconduct

Investigating alleged misconduct and issuing proportionate disciplinary outcomes, such as a written warning, can be reasonable. Again, a fair process is critical: tell the worker the allegations, share relevant evidence, allow a support person if appropriate, and consider the response before deciding next steps. Where serious allegations arise, you may consider a “show cause” stage; this is where a show cause letter can help structure the process.

Workplace Change

Restructures, changing rosters, reallocating duties, or declining leave in peak periods may be justified. Communicate early, explain the business reasons, consult where required and consider individual circumstances.

When Does Management Action Cross The Line?

Even legitimate decisions can turn into unreasonable behaviour if they’re handled poorly. Watch for these risk factors.

Unreasonable Method Or Tone

Management action given in an aggressive, humiliating or public way can become unreasonable. So can setting unrealistic deadlines as punishment, or repeatedly criticising a person without guidance on how to improve.

Lack Of Process Or Natural Justice

Diving straight to a harsh outcome without explaining the issue, sharing the facts, or giving a chance to respond can be unreasonable. Skipping steps can also breach your own procedures and undermine trust.

Inconsistency Or Targeting

Singling out one person for rules that others don’t follow, or ignoring mitigating factors, can make otherwise legitimate action look like bullying. Apply policies consistently and document your reasons.

Frequency And Impact

Repeated unconstructive comments, microaggressions, or exclusion from necessary meetings can create a risk to health and safety. If the conduct starts affecting the worker’s wellbeing, treat it as a psychosocial risk you must address.

Remember: the law assesses what a reasonable person would consider acceptable in the circumstances. Good faith alone isn’t enough - the method must be fair.

Managing Performance And Complaints Safely: Step-By-Step

The best way to avoid disputes is to set expectations early and follow a consistent, documented process. Here’s a practical framework.

1) Ground Your Team In Clear Documents

Start with strong foundations. Make sure every staff member has the right Employment Contract, position description and access to your workplace policies. A well-designed Staff Handbook also helps new starters understand standards from day one.

Key policies usually include code of conduct, bullying and harassment, performance and grievances, leave, health and safety, and a fair investigations procedure. If you don’t have these yet, consider rolling them into a single, accessible Workplace Policy set.

2) Address Performance Early And Constructively

Raise issues promptly and privately. Describe the concern with examples, explore root causes, and agree on a plan to improve. If issues persist, move to formal performance management with clear milestones and review dates. Keep notes and confirm key points in writing.

3) If A Complaint Is Made, Triage It Quickly

Assess whether the allegation, if proven, would amount to bullying or another policy breach. Consider immediate safety issues, interim measures and who should manage the process (e.g., HR or an external investigator for sensitive matters).

If the complaint relates to a performance decision, review whether the original action and method were reasonable. You may need to pause or adjust steps if the process was flawed.

4) Run A Fair And Confidential Investigation

Tell the respondent what’s alleged and share enough detail so they can respond. Interview relevant witnesses and gather documents. Keep an open mind and avoid pre-judging. Some matters may warrant a neutral support person for interviews.

Where there are serious allegations and operational risk, consider interim arrangements. Depending on the circumstances, this could include modified duties or a short, paid pause on work while you complete inquiries. In higher-risk situations, employers sometimes look at standing down an employee pending investigation (which has strict legal criteria) - get advice before taking that step.

5) Decide And Follow Through - Proportionately

Make findings on the balance of probabilities, apply your policy, and ensure the outcome is proportionate. Options could include training, mediation, a warning, or for serious misconduct, termination following a procedurally fair process.

If you’re moving towards dismissal, revisiting your performance management process and ensuring procedural fairness can reduce unfair dismissal risk.

6) Communicate Outcomes And Monitor The Workplace

Inform those involved of the outcome on a “need-to-know” basis and outline any steps the business will take to support a safe and respectful workplace. Monitor team dynamics following the decision and check in on wellbeing.

Practical Tips To Keep Your Actions “Reasonable”

Reasonableness is about both substance and method. These day-to-day habits will help.

• Plan your conversations: Outline the purpose, key points and desired outcome. Avoid surprising someone with a laundry list of issues they’ve never heard before.
• Stick to facts: Use examples, dates and documents where possible. Avoid labels or assumptions about intent.
• Use a measured tone: Choose a private setting, allow a support person if appropriate, and avoid public criticism.
• Be consistent: Apply policies uniformly and keep written records so you can explain your decision-making later if needed.
• Offer support: Consider reasonable adjustments, training or mentoring where it may help the worker meet expectations.
• Protect privacy: Keep complaints and investigations confidential on a need-to-know basis and store records securely.
• Beware of recordings: In some contexts, workers may record meetings. If you need to understand the rules, review phone call recording laws and your own policies - and consider clarifying your expectations in writing.

If a matter is complex or high-risk, it’s worth speaking with an employment lawyer early so you can navigate the process confidently.

Policies, Training And Documents You Should Have

Clear, tailored documents help set expectations and standardise how managers act - which goes a long way to keeping things “reasonable”. Consider these essentials:

• Employment Contract: Sets role duties, reporting lines, performance expectations, confidentiality and termination processes.
• Workplace Policy: Brings together bullying and harassment, grievances, investigations, performance management, code of conduct and WHS procedures.
• Staff Handbook: A practical, user-friendly companion to your formal policies that reinforces behavioural standards.
• Performance Management Framework: Templates for PIPs, meeting notes and warnings aligned with your policy and any industrial instrument.
• Show Cause Letter (when required): Structures serious disciplinary processes and gives employees a fair chance to respond.
• Manager Training: Regular training on giving feedback, running fair processes and recognising psychosocial hazards.

If bullying or discrimination claims do arise, having the right processes and representation in place can make a significant difference. Where needed, engage support that focuses specifically on workplace harassment and discrimination claims (for employers).

Common Employer Scenarios: Reasonable Or Not?

Declining Leave In Peak Season

Generally reasonable if it’s based on genuine operational needs, applied consistently, and communicated clearly. Offer alternatives where possible.

Moving A Worker To A Different Team

Often reasonable if there’s a legitimate business reason (e.g., restructuring or capability alignment). Consult the worker, consider their circumstances and document the change.

Publicly Criticising A Worker’s Mistake

Usually not reasonable. Provide feedback privately and focus on how to improve rather than assigning blame.

Skipping The “Warning” Stage And Dismissing Immediately

Only reasonable in cases of serious misconduct where a fair, prompt process still occurs. Otherwise, a staged approach with warnings is safer.

Reprimanding Someone For Making A Complaint

Not reasonable. That can amount to victimisation and increase legal risk. Make sure your policies encourage speaking up and outline a fair triage process.

Key Takeaways

• “Reasonable management action” carried out in a reasonable manner is not bullying - substance and method both matter.
• Examples include setting expectations, giving constructive feedback, lawful directions, fair performance management and proportionate discipline.
• Management action can become bullying if it’s aggressive, inconsistent, procedurally unfair, repeated, or risks health and safety.
• Protect your business with clear documents and training: an Employment Contract for each role, a comprehensive Workplace Policy, and a structured performance management process.
• When complaints arise, act quickly, investigate fairly, keep records and communicate outcomes proportionately.
• For high‑risk or complex matters, getting advice from an employment lawyer early can help you manage risk and move forward confidently.

If you would like a consultation on managing performance and workplace bullying risks in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.