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.
Creating a safe, respectful workplace isn’t just the right thing to do - it’s a legal requirement in Australia. If you run a small business, the rules around sex based harassment have tightened in recent years, and regulators expect employers to take proactive steps to prevent it.
The good news is you don’t need a big HR department to get this right. With a clear plan, the right documents and a fair process, you can protect your team and your business - and meet your legal obligations with confidence.
In this guide, we explain what “sex based harassment” means under Australian law, your duties as an employer, the steps to prevent issues, and how to respond if a complaint is made.
What Is Sex-Based Harassment Under Australian Law?
“Sex based harassment” is unlawful conduct directed at someone because of their sex. It includes unwelcome conduct of a demeaning, offensive or intimidating nature based on a person’s sex, even if it’s not sexual in nature (for example, belittling comments or gender-based insults about someone doing a “man’s job” or “woman’s job”).
It sits alongside sexual harassment (unwelcome sexual advances, requests or conduct of a sexual nature). Both are prohibited in Australian workplaces. Importantly, Australian law now makes it clear that this protection applies to workers broadly - including employees, contractors, interns, volunteers and, in some cases, people who deal with your business like clients, suppliers and customers.
Practically, this means you should treat any complaint about sex based harassment or sexual harassment seriously and follow a consistent, fair process.
Why Small Businesses Must Act Now
There are several reasons small businesses need to be proactive, not reactive:
- Positive duty to prevent: Australian anti-discrimination law now requires employers to take “reasonable and proportionate” measures to prevent sex based and sexual harassment - not just respond after the fact.
- Vicarious liability risk: A business can be held responsible for harassment by its workers if it didn’t take reasonable steps to prevent it (for example, having no policy, no training and no complaints process).
- Broader access to remedies: Workers can seek “stop sexual harassment” orders through the Fair Work Commission, and complaints can also go to the Australian Human Rights Commission and courts.
- Reputation and culture: A single incident can seriously impact team morale, productivity and brand trust - especially in small teams where every person matters.
Taking clear, documented steps now will reduce your risk and build a safer workplace. It also aligns with your general duty of care to staff.
How Do You Prevent Sex-Based Harassment? Practical Steps
Prevention is always better than cure. Here’s a simple, scalable framework any small business can follow.
1) Set Clear Expectations (Policy + Contracts)
Start by making your expectations explicit. A tailored Workplace Policy should define sex based harassment and sexual harassment, set behavioural standards, explain how to make a complaint, and outline what happens if the policy is breached.
Reinforce those standards in each Employment Contract. Reference your policy and include obligations to follow lawful and reasonable directions, maintain respectful conduct, and comply with disciplinary processes.
2) Provide Training (Keep It Short, Regular And Practical)
Even a 30-45 minute induction module and an annual refresher can make a big difference. Cover what sex based harassment looks like, bystander responsibilities, how to raise concerns, and how complaints will be handled. Keep records of attendance.
3) Make Reporting Safe And Simple
Offer at least two reporting pathways (for example, line manager and a designated owner/HR contact). Allow anonymous reports where possible. Acknowledge complaints promptly, explain next steps, and keep people updated on timeframes.
4) Act Quickly And Consistently
Have a triage process. Some matters can be resolved informally (where appropriate and with the complainant’s agreement). Others will require a formal investigation with interim safety measures in place. Apply your policy consistently to avoid claims of unfair treatment.
5) Document, Document, Document
If it’s not written down, it’s hard to prove later. Keep records of training, policy acknowledgements, complaints, interviews, outcomes, and any follow-up actions (like coaching or disciplinary steps). Robust records help demonstrate you took “reasonable steps”.
6) Review Culture And Processes
Monitor hotspots (e.g. after-hours events, customer-facing roles, isolated work). Check your recruitment practices, rosters and leadership behaviours. Small tweaks - like clearer event guidelines or buddy systems for late shifts - can reduce risk materially.
What Should You Do If A Complaint Is Made?
When a concern lands on your desk, the way you respond matters just as much as the outcome. Here’s a practical, defensible approach.
Step 1: Ensure Immediate Safety
Consider interim measures to protect those involved while you assess the complaint. This might include adjusted reporting lines, separating shifts, remote work, or temporarily suspending an employee pending investigation on pay where appropriate.
Step 2: Acknowledge And Clarify
Acknowledge the complaint in writing. If details are unclear, ask neutral, open questions to understand the who/what/when/where. Explain your process and expected timeframes.
Step 3: Decide On The Investigation Path
For lower-level issues where the complainant seeks an apology or coaching, an informal resolution may be suitable.
For serious allegations (e.g. ongoing harassment, threats, repeated slurs), conduct a formal investigation. Decide whether it will be internal or external, who will interview witnesses, and what evidence you need. Keep it fair and procedurally sound for everyone involved.
Step 4: Give The Respondent A Fair Chance To Respond
Before making findings, provide the respondent with sufficient detail about the allegations and an opportunity to respond, often via a written invitation and, where appropriate, a show cause letter if disciplinary action is contemplated.
Step 5: Make Findings And Take Action
Base your findings on the balance of probabilities (what’s more likely than not). If the complaint is substantiated (fully or in part), apply proportionate outcomes: coaching, formal warnings, performance management, changing duties or reporting lines, or termination in serious cases. If not substantiated, consider preventative steps to address any residual risks.
Step 6: Close The Loop And Follow Up
Communicate the outcome to the complainant (while respecting confidentiality) and outline any next steps. Monitor the workplace afterwards to ensure there’s no victimisation, and that behaviour improves. Keep your records up to date.
Key Workplace Documents To Put In Place
Having the right documents makes prevention, response and compliance far easier. Consider these as your core toolkit:
- Workplace Policy: Your central guide on respectful behaviour, sex based harassment and sexual harassment definitions, complaint pathways, and disciplinary processes. A tailored, up-to-date Workplace Policy is essential.
- Employment Contracts: Set expectations from day one and reference your policies. Each Employment Contract should include behavioural standards and consequences for breaches.
- Privacy Policy: Complaints often involve sensitive personal information. A compliant Privacy Policy and careful handling of records will help you meet privacy obligations and build trust.
- Investigation Framework: Internal guidelines or templates for intake forms, interview plans and outcome letters help ensure consistent, fair processes.
- Confidentiality/NDA: In limited circumstances (for example, resolving a dispute), a Non-Disclosure Agreement can protect sensitive business information. Use carefully and always allow lawful disclosures (e.g. to regulators or for protected whistleblowing).
- Disciplinary Templates: Letters for warnings, performance management and invitations to meetings (including “show cause”) support a procedurally fair approach and reduce admin time.
If a matter escalates, you may also need investigation terms of reference, suspension letters, or a settlement deed. Getting tailored support from an employment lawyer can save time and reduce risk.
Recruitment, Customers And Third Parties: Don’t Overlook These Risks
Prevention starts before someone joins your team. Review job ads and interview questions - avoid assumptions or intrusive questions about family plans, marital status or gendered capabilities. Our guide on illegal interview questions can help you reduce bias and risk at the hiring stage.
Customer-facing roles can also carry higher exposure. Make sure your policy covers harassment by customers or suppliers, train staff on de-escalation and reporting, and support managers to act promptly (for example, by banning abusive customers or escalating to security where needed).
Fair Process Without A Big HR Team: Practical Tips
Small businesses can run fair processes with a few simple habits:
- Use checklists and templates to keep steps consistent.
- Separate roles where possible (e.g. one person investigates, another decides the outcome).
- Keep notes and confirm key steps in writing.
- If in doubt, get a short advice call early - it’s often faster and cheaper than fixing a misstep later.
If you need to temporarily remove someone from the workplace while you assess a serious allegation, follow a structured approach to suspension pending investigation and maintain pay unless your contract and policy clearly allow otherwise.
Common Mistakes To Avoid
- No policy or training: Without clear standards and education, “I didn’t know” excuses become more likely and your legal risk increases.
- Inconsistent responses: Treating similar incidents differently can lead to claims of unfairness or discrimination.
- Not acting quickly: Delays can worsen harm, escalate conflict and undermine trust in the process.
- Poor confidentiality: Oversharing details can cause further harm. Limit information to those who need to know and follow your Privacy Policy.
- Skipping procedural fairness: Always give the respondent an opportunity to respond, often via a proper show cause process for serious outcomes.
- Failing to monitor after resolution: Check in to ensure there’s no victimisation and that behaviour has genuinely improved.
Key Takeaways
- Sex based harassment is unlawful in Australia and employers have a positive duty to take reasonable and proportionate steps to prevent it.
- Prevention relies on clear standards, practical training, safe reporting options, and consistent documentation.
- When a complaint arises, move quickly, protect safety, follow a fair process and keep thorough records from start to finish.
- Core documents - a tailored Workplace Policy, strong Employment Contracts, a compliant Privacy Policy and fair disciplinary templates - make prevention and response much easier.
- Small businesses can manage investigations effectively with simple tools; get early advice on tricky issues like suspension, show cause letters and outcomes.
- Embedding respect in day-to-day operations (including recruitment and customer interactions) reduces risk and strengthens your culture.
If you’d like a consultation on preventing and responding to sex based harassment in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








