New Sexual Harassment Laws In Australia: Employer Duties And Next Steps

Running a small business means wearing a lot of hats - hiring, leading your team, serving customers, and keeping everything compliant.

In the last few years, the legal landscape around workplace sexual harassment has changed significantly. If you’ve been relying on “we have a policy somewhere” as your main safeguard, it’s time to revisit your approach.

Recent reforms to sexual harassment laws in Australia are designed to push workplaces away from a reactive model (handling complaints only after something goes wrong) and toward a preventative model (actively reducing risk before it happens). For employers, that means more clarity on what’s expected - but also more accountability if you don’t take reasonable steps.

Below, we’ll break down what’s changed, what it means for small business employers, and what you should do now to protect your people and your business.

What Are The New Sexual Harassment Laws In Australia (And Why Do They Matter For Employers)?

Australia’s recent reforms come largely from the Respect@Work changes and amendments to federal discrimination law, including the Sex Discrimination Act 1984 (Cth). While the details can feel technical, the practical takeaway for employers is simple:

Sexual harassment is now treated more clearly as a workplace risk issue - and employers are expected to prevent it, not just respond to it.

Some of the most important changes that affect small businesses include:

• A “positive duty” to prevent sexual harassment and related unlawful conduct (more on this below)
• Stronger pathways for workers to take action (including, in some circumstances, applications through the Fair Work Commission’s anti-sexual harassment jurisdiction)
• More focus on systems and culture, including conduct that creates a hostile workplace environment on the ground of sex
• Greater enforcement powers for regulators in certain contexts (including the Australian Human Rights Commission’s ability to inquire into and enforce compliance with the positive duty)

If your business hasn’t updated its policies, training and processes recently, these new settings may mean your current approach is not enough.

Who Do The New Sexual Harassment Laws Apply To?

One reason these changes matter is that workplace protections are not only about your “employees” in the traditional sense.

Depending on the legal pathway and the situation, obligations and risks can extend to a broad group of people involved in your workplace, such as:

• full-time and part-time employees
• casual employees
• contractors and sub-contractors (especially where they work in your workplace or under your direction)
• apprentices and trainees
• work experience placements (in some settings)
• prospective employees (for example, harassment during recruitment)

Importantly, “the workplace” is also not limited to your physical premises. It can include:

• work-related events (including conferences and Christmas parties)
• work travel
• online work environments (Slack, Teams, email, work group chats)
• after-hours conduct with a work connection

For small businesses, this often comes down to practical risk points: informal cultures, blurred boundaries in small teams, and the fact that managers often work “in the trenches” alongside staff.

What Is The “Positive Duty” And What Does It Mean For Your Business?

One of the biggest shifts in the new sexual harassment law is the introduction of a positive duty in the Sex Discrimination Act 1984 (Cth).

In plain English, the positive duty means you have a legal obligation to take reasonable and proportionate measures to eliminate (as far as possible) certain unlawful conduct, which can include:

• sexual harassment
• sex-based harassment
• hostile workplace environments on the ground of sex
• victimisation (for example, punishing someone for raising a concern)

This is a major change because it pushes businesses to think like they would about work health and safety: identify hazards, assess risks, and implement controls.

What Counts As “Reasonable And Proportionate Measures”?

There isn’t a single checklist that fits every business. What is “reasonable” depends on factors such as:

• the size of your business
• the nature of your workplace (for example, customer-facing venues, late-night work, remote work, isolated work)
• your workforce composition (young workers, power imbalances, high turnover, reliance on casuals)
• the resources available to you (while small businesses aren’t expected to do everything a large enterprise can, you’re still expected to do what is reasonable in your circumstances)

For most small businesses, “reasonable measures” usually includes having the right documents, training, reporting pathways, and a plan for responding quickly and fairly.

Why This Matters (Even If You’ve Never Had A Complaint)

Many employers assume sexual harassment compliance is only relevant if a complaint is made. Under the new approach, the absence of a complaint doesn’t necessarily mean the absence of risk.

It’s worth treating this as part of your broader business risk management - because if an issue does arise, your response will be judged in the context of what steps you took to prevent it.

What Employers Should Do Now: A Practical Compliance Checklist

If you’re wondering what to do next, the goal is to build a system that is clear, usable, and actually followed day-to-day.

Here’s a practical checklist many small businesses use to get aligned with updated sexual harassment laws in Australia.

1. Update Your Workplace Policies (And Make Sure They’re Usable)

You’ll want a clear, written policy that explains:

• what sexual harassment is (including examples relevant to your industry)
• what behaviour is not acceptable (including “jokes”, comments, and online conduct)
• how to report concerns (and to whom)
• how your business will respond (including timelines and confidentiality expectations)
• protections against victimisation

For most small businesses, it’s also important that policies aren’t written in overly legal language. If your team won’t read it, it won’t work.

Many employers build this into a broader Workplace Policy suite, so expectations are consistent across conduct, bullying, discrimination, and performance management.

2. Put The Right Employment Documents In Place

Your policy framework works best when it’s supported by solid contracts.

For example, your Employment Contract can reinforce behavioural expectations, compliance with policies, and the consequences of misconduct.

If you use contractors, you should also consider whether your contractor agreement includes appropriate conduct obligations and reporting pathways (contractors can create risk for your business, and they can also be exposed to risk while working in your environment).

3. Train Your Team (And Don’t Forget Managers)

Training is one of the most defensible “reasonable steps” an employer can take - but only if it’s relevant and reinforced.

As a minimum, consider training on:

• what sexual harassment and sex-based harassment can look like in your workplace
• bystander expectations (what staff should do if they see or hear something inappropriate)
• how to report concerns and what happens next

Managers should also receive additional training on handling disclosures sensitively and escalating issues appropriately.

4. Review Your Workplace Risk Points

This is where the “positive duty” mindset really becomes practical.

Common risk points for small businesses include:

• young workers and junior staff
• power imbalances (for example, one senior person managing a small team)
• workplace functions involving alcohol
• isolated work (opening/closing shifts, home visits, remote jobs)
• customer aggression or inappropriate customer behaviour in retail, hospitality, health and personal services
• online communications that become informal or out-of-hours

Once you identify the risks, you can implement controls (like buddy systems for closing shifts, clearer reporting channels, or updated event guidelines).

5. Keep Your Documents And Processes In One Place

For small businesses, the biggest failure point is often not intention - it’s organisation.

A Staff Handbook can help you keep key policies and behavioural expectations in one place, so onboarding is consistent and your team knows where to find what they need.

How To Handle Complaints, Investigations, And Discipline (Without Making Things Worse)

Even with strong prevention, issues can still arise. What you do in the first 24–72 hours after becoming aware of a concern can significantly affect your legal and commercial risk.

Your process should aim to be:

• safe (for the person raising the concern and others in the workplace)
• fair (to all parties)
• prompt (unnecessary delays can create risk)
• confidential where possible (while recognising you may need to disclose information to investigate)

Step 1: Take Immediate Steps To Prevent Further Risk

Depending on what’s alleged, you may need interim measures while you assess next steps.

This can include changing rosters, adjusting reporting lines, or (in some cases) a temporary direction not to attend the workplace or perform certain duties while an investigation occurs - but these steps need to be handled carefully and lawfully (including checking your employment contract, any applicable award or enterprise agreement, and getting advice where needed). In some situations, an employer may consider standing down an employee pending investigation where lawful and appropriate.

The key is to avoid knee-jerk decisions - but also not to leave a situation unmanaged.

Step 2: Investigate In A Procedurally Fair Way

Small businesses sometimes try to “sort it out informally” to avoid conflict. While informal resolution can work in some lower-level matters, allegations of sexual harassment should be treated with care.

Generally, a fair process includes:

• clarifying what is being alleged (what happened, when, where, who was involved)
• gathering available evidence (messages, emails, CCTV where relevant, witness accounts)
• giving the respondent an opportunity to respond
• documenting the process and outcome

If you’re considering disciplinary action, the way you communicate the allegations and give the employee a chance to respond matters.

In more serious matters, a show cause letter can help structure a fair process and reduce the risk of making a rushed decision that later becomes hard to defend.

Step 3: Take Action And Follow Through

Outcomes depend on the facts, but may include:

• training and behavioural counselling
• a formal warning
• changing reporting lines or duties
• termination (in serious cases, and only after appropriate process)

It’s also important to check whether there are any broader cultural or systemic issues contributing to the problem - particularly under the positive duty approach.

Step 4: Protect Against Victimisation

After a complaint, the risk doesn’t end when the investigation ends.

You should take steps to ensure the person who raised the concern is not punished or sidelined (intentionally or unintentionally). That includes monitoring rostering, performance management decisions, and workplace dynamics.

If you’re unsure about your legal exposure as an employer, it can help to get advice early - particularly because complaints can escalate into significant disputes and liability. This is often where employers seek help with workplace harassment and discrimination claims.

What If You’re A Small Business Without HR?

A lot of new obligations can feel like they were written with large organisations in mind. But small businesses can still meet expectations with a clear and workable system.

Here’s what “good” often looks like in a small business environment:

• Clear rules: one plain-English policy that everyone understands
• Simple reporting channels: at least two options (for example, a manager and an owner/director) so staff have somewhere to go if the issue involves their direct supervisor
• Consistent onboarding: every new starter receives the policy and signs acknowledgement
• Short refreshers: quick annual training or toolbox talks
• Written records: keep notes of training, complaints, investigations, and outcomes

Most importantly, consistency matters. A policy that’s enforced sometimes (or only for certain people) can create more risk than having no policy at all.

Key Takeaways

• Recent updates to sexual harassment laws in Australia place a stronger focus on prevention, not just responding after an incident.
• Employers should treat sexual harassment as a workplace risk issue and take reasonable and proportionate measures to eliminate it as far as possible.
• Practical steps include updated policies, manager training, clear reporting pathways, and consistent documentation.
• When a complaint arises, acting promptly and fairly - with appropriate interim measures and a documented process - can significantly reduce legal risk.
• Small businesses don’t need complex systems, but they do need workable systems that are actually followed day-to-day.

Australian Human Rights Commission guidance can help employers understand and implement the positive duty in practice. This article is general information only and not legal advice.

If you’d like help updating your workplace policies, employment contracts, or complaint-handling processes to align with the updated sexual harassment law, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.