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.
Running a small business means wearing a lot of hats. You’re thinking about customers, cashflow, hiring, culture and keeping your team productive. But there’s one area that can’t be left to “we’ll deal with it if it happens”: sex-based harassment in the workplace.
Even if you have a tight-knit team, good intentions aren’t enough. Sex-based harassment can show up in subtle ways, escalate quickly, and create serious legal, operational and reputational risks for your business.
The good news is that with the right workplace foundations, clear expectations, and a practical plan for responding to issues, you can significantly reduce the risk - and create a safer, more respectful workplace where people can do their best work.
This guide explains what sex-based harassment can look like, why it matters, what your obligations are as an employer, and the practical steps Australian SMEs can take.
What Is Sex-Based Harassment (And How Is It Different To Sexual Harassment)?
Sex-based harassment is unwelcome conduct that is based on a person’s sex (or sex-related characteristics) and that makes someone feel offended, humiliated or intimidated.
It’s closely related to sexual harassment, but it isn’t always “sexual” in content. Sex-based harassment can involve:
- hostile or degrading behaviour because someone is a woman or a man (or because of gender stereotypes);
- put-downs, jokes, comments or exclusion that target someone based on sex;
- behaviour that creates a hostile workplace environment for people of a particular sex.
In a small business, it can be particularly tricky because teams are close, people communicate casually, and boundaries can be blurred. What one person sees as “banter” can still be harassment if it’s unwelcome and creates a hostile environment.
It’s also important to remember that harassment can occur:
- between employees at the same level;
- from a manager to a team member (or vice versa);
- by contractors, visitors, suppliers or customers;
- in person, via text messages, social media, DMs, email or internal chat channels;
- at work events, conferences, client dinners, or even during work travel.
Sex Based Harassment Examples Australian SMEs Commonly See
If you’re trying to build policies or train your team, it helps to be specific. Below are common sex based harassment examples that can arise in workplaces - including in small teams where people know each other well.
1. Sex-Based “Jokes” Or Comments
Examples include comments or jokes that stereotype or demean a person because of their sex, such as:
- “Women are too emotional for leadership.”
- “Men are hopeless at admin.”
- ridiculing men who take parental leave or women who return from maternity leave;
- making fun of someone for not fitting traditional gender expectations.
2. Hostile Work Environment Behaviour
This can look like repeated conduct that creates an intimidating or degrading atmosphere, for example:
- constant interruptions or talking over women in meetings;
- excluding someone from projects or client work because of their sex;
- putting someone down in front of others using sex-based insults.
3. “Boys’ Club” Or “Girls’ Club” Dynamics
In SMEs, culture is often set by a few key people. Sometimes, informal cliques or group chats can result in:
- sex-based gossip or objectifying commentary;
- sharing memes or images that degrade a particular sex;
- social activities that consistently exclude people based on sex.
4. Sex-Based Harassment By Customers Or Clients
This is a big one for hospitality, retail, allied health, professional services and trades. For example:
- a customer making sexist comments to staff;
- a client repeatedly requesting a staff member of a particular sex (“send a man, he’ll know what he’s doing”);
- a client using demeaning language towards your staff because of their sex.
Even though the behaviour is coming from outside your business, you can still have obligations to take reasonable steps to protect workers.
5. Online Or After-Hours Conduct Connected To Work
Conduct can still be “work-related” even if it happens outside standard hours. Examples include:
- sex-based comments in team group chats;
- harassing DMs between coworkers related to workplace dynamics;
- sexist posts in a work-adjacent social group or forum.
If you’re unsure whether something “counts” as workplace conduct, it’s usually better to treat it seriously early and get advice before it escalates.
What Are Your Employer Obligations Around Sex-Based Harassment?
As an employer, you have a duty to provide a safe workplace. That includes psychological safety - not just physical safety.
From a practical SME perspective, your obligations usually translate into this: you must take reasonable steps to prevent and respond to sex-based harassment, and you must handle complaints in a way that is fair, consistent and timely.
Employer obligations can involve multiple overlapping legal areas, including:
- anti-discrimination and harassment laws (federal and state/territory);
- work health and safety (WHS) obligations to manage psychosocial risks;
- employment law requirements around investigations, procedural fairness, and managing misconduct.
It’s also important to be aware that, at a federal level, Respect@Work reforms introduced a positive duty under the Sex Discrimination Act 1984 (Cth). In broad terms, this means employers must take reasonable and proportionate measures to eliminate (as far as possible) unlawful sex discrimination, sexual harassment, sex-based harassment, hostile workplace environments on the ground of sex, and related victimisation - rather than waiting for a complaint to arise.
For SMEs, the biggest risk is often not just that misconduct occurred - it’s that the business didn’t have systems in place (or didn’t follow them) when something was raised.
Some common “red flag” gaps we see include:
- no clear complaint pathway;
- no written standards for behaviour and communication;
- inconsistent management responses (“it depends who it is”);
- trying to resolve serious issues informally with no documentation;
- retaliation (or perceived retaliation) against the person who raised a concern.
A strong foundation usually starts with clear documents and consistent processes. Many SMEs put these expectations into a Workplace Policy and a broader Staff Handbook so the rules are clear from day one.
How To Prevent Sex-Based Harassment: Practical Steps That Actually Work
Prevention isn’t about turning your workplace into a legal minefield - it’s about setting standards and building a culture where people know what’s okay, what isn’t, and what to do if something feels wrong.
Here are practical, SME-friendly steps that make a real difference.
1. Set Clear Expectations In Writing
Policies help you do two important things:
- tell people what behaviour is expected; and
- show you took steps to prevent harassment (which matters if issues arise later).
At a minimum, you should have written guidance covering respectful behaviour, anti-bullying/harassment expectations, reporting pathways, and consequences for breaches. You can also embed these expectations into your Employment Contract so behavioural standards and disciplinary consequences are aligned with your employment framework.
2. Train Your Leaders (And Don’t Forget Supervisors)
In a small business, supervisors and team leads often set the day-to-day tone. Training doesn’t need to be overly complex, but it should cover:
- what sex-based harassment is (including examples);
- how to respond if someone raises an issue (and what not to say);
- how to avoid victimisation or retaliation;
- when to escalate to HR/legal support.
Even a short, regular training session can reduce risk - especially if you include scenarios relevant to your workplace (customer-facing work, group chats, work events, etc.).
3. Make Reporting Safe And Simple
People often don’t report harassment because they fear:
- they won’t be believed;
- it will harm their job or shifts;
- they’ll be labelled “difficult”;
- nothing will change anyway.
To address this, consider offering multiple reporting options, for example:
- their direct manager (where appropriate);
- a different manager or business owner;
- an external person (for example, your outsourced HR provider);
- a dedicated email address for reports.
In SMEs, the “manager is the problem” scenario is also real. Alternative reporting paths are critical.
4. Think Beyond The Office: Customers, Contractors And Events
If your staff deal with the public, your prevention approach should include customer conduct. That might mean:
- scripts for staff to use when a customer is inappropriate;
- a clear escalation process (e.g. “call the duty manager”);
- your right to refuse service where appropriate;
- documenting and banning repeat offenders where needed.
For work events, set expectations beforehand (including alcohol-related boundaries), and ensure managers understand they’re still “on duty” in terms of maintaining a safe environment.
5. Keep Records (Without Turning Everything Into A Trial)
Good documentation doesn’t have to be complicated. The goal is to keep a clear record of:
- what was reported and when;
- what steps you took to respond;
- any interim measures (like separating staff on shifts);
- the outcome and any follow-up actions.
This is particularly important if the issue escalates into a formal complaint or dispute later.
What To Do If A Sex-Based Harassment Complaint Is Made In Your Business
When a complaint lands on your desk, it can feel confronting - especially in a small team where everyone knows each other.
But the way you respond in the first 24–72 hours matters. A calm, structured approach helps protect your team and reduces legal risk.
Step 1: Take It Seriously And Respond Promptly
You don’t need to decide immediately what “really happened” - but you do need to acknowledge the complaint and explain what the process will look like.
Avoid common mistakes like:
- dismissing it as a misunderstanding;
- making promises about outcomes before investigating;
- telling the person to “sort it out” directly with the other party for serious issues.
Step 2: Consider Interim Safety Measures
If there’s a risk of ongoing harm or conflict, you may need interim measures while you work out next steps, such as:
- adjusting shifts or reporting lines;
- moving workstations;
- directing no contact (where appropriate);
- standing someone down in serious circumstances (only with care and advice).
The aim is safety and fairness - not punishment before you have the facts.
Step 3: Follow A Fair Process (Procedural Fairness)
Even if you’re confident someone has acted inappropriately, you still need to manage the process properly. That often includes:
- clarifying the allegations;
- giving the respondent an opportunity to respond;
- considering evidence (messages, witnesses, CCTV where relevant and lawful);
- making findings based on what is more likely than not (in most workplace investigations);
- deciding outcomes proportionate to the conduct.
For more serious matters, employers often use formal correspondence to set expectations and outline the allegations clearly. Depending on the situation, that may include show cause letters as part of a compliant disciplinary process.
Step 4: Decide Outcomes And Document Them
Outcomes can range from training and warnings through to termination, depending on severity, history, and the surrounding circumstances.
Make sure any outcome is:
- consistent with your policies and employment documents;
- applied consistently across your business (as much as possible);
- documented clearly;
- communicated carefully, with confidentiality in mind.
If termination is on the table, it’s worth getting advice early. Ending employment incorrectly can create a separate legal risk, even if the underlying misconduct is serious. Support from an Employment Lawyer can help you manage the process properly and reduce the risk of an unfair dismissal claim or adverse action issues.
Step 5: Prevent Retaliation And Rebuild The Workplace
After a complaint is handled, you should still think about the broader workplace impact. Practical follow-up steps can include:
- checking in with the person who raised the concern (without pressuring them);
- reminding relevant staff about confidentiality;
- refreshing team expectations (sometimes a short training or toolbox talk is enough);
- reviewing whether your policies and reporting pathways are actually working.
Sometimes the best long-term risk reduction is to strengthen your written processes after the first incident - so you’re in a better position if another issue arises.
Key Takeaways For Small Business Owners
- Sex-based harassment can include sexist jokes, stereotyping, exclusion, hostile conduct, and customer behaviour - it’s not limited to overtly sexual conduct.
- Your obligations as an employer generally include taking reasonable steps to prevent harassment, responding promptly to complaints, and providing a safe workplace (including psychological safety).
- At a federal level, the Sex Discrimination Act also includes a positive duty to take reasonable and proportionate measures to eliminate sex-based harassment and related unlawful conduct, which means prevention measures matter even if no complaint has been made.
- Clear written standards (like a Workplace Policy and Staff Handbook) help set expectations and show you’ve taken prevention seriously.
- Training leaders and making reporting pathways simple reduces risk - especially in SMEs where power dynamics and informal culture can be strong.
- If a complaint is made, focus on safety, fairness and documentation, and consider formal steps (including show cause letters) for serious matters.
- Where outcomes may include termination or high-risk management action, getting support from an Employment Lawyer can help you handle the process properly and reduce legal exposure.
If you’d like help reviewing your approach to sex-based harassment, updating workplace policies, or managing a complaint, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








