Sexual Harassment Law in Australia: What Employers Need to Know

Creating a safe, respectful workplace isn’t just the right thing to do - in Australia, it’s a clear legal requirement. If you manage people, suppliers or contractors, sexual harassment law now places a positive duty on you to take reasonable and proportionate steps to prevent harassment before it happens.

For small businesses, that can feel daunting. The good news is that a practical, step-by-step approach can set you up for success so you protect your people and reduce legal risk at the same time.

In this guide, we’ll break down what sexual harassment law requires in Australia, what “reasonable and proportionate” prevention looks like for small teams, and how to respond if a complaint lands on your desk.

What Counts As Sexual Harassment Under Australian Law?

Sexual harassment is any unwelcome conduct of a sexual nature that a reasonable person would anticipate could make someone feel offended, humiliated or intimidated. It covers more than obvious physical behaviour - it includes verbal comments, jokes, images, messages, and conduct online or via apps.

Key points for employers:

• It applies to everyone connected with work: employees, contractors, interns, volunteers, labour-hire workers and even customers or clients in many cases.
• It can occur at work, at work-related events, during work travel, in remote/online settings and in group chats used for work.
• Repeated conduct is not required - a single incident can be sexual harassment.

Australian law also now addresses hostile work environments on the basis of sex (for example, sexist banter or imagery) and victimisation (treating someone badly because they made or supported a complaint).

Your Legal Duties As A Small Business Employer

Several laws work together to set your obligations. Here’s what matters most in practice.

1) Positive Duty To Prevent Sexual Harassment (Sex Discrimination Act)

Following the Respect@Work reforms, employers have a positive duty to take reasonable and proportionate measures to eliminate sexual harassment, sex discrimination and hostile work environments, as far as possible. The Australian Human Rights Commission (AHRC) can now monitor and enforce this duty.

What is “reasonable and proportionate” depends on your size, resources and risk profile. For a small business, this typically includes a clear policy, regular training, leadership commitment, simple reporting channels, and timely, fair handling of issues.

2) Workplace Health and Safety (WHS)

Sexual harassment is a health and safety risk (a psychosocial hazard). As a person conducting a business or undertaking (PCBU), you must identify harassment risks, implement controls and review them. That might include supervision at events, managing alcohol service, setting expectations around online tools, and providing safe, private reporting options.

3) Fair Work Act Protections

Workers can apply to the Fair Work Commission (FWC) for “stop sexual harassment” orders and other remedies. The Act also prohibits adverse action against someone because they made a complaint (or exercised a workplace right). Managing complaints fairly and avoiding victimisation is critical.

4) Vicarious Liability

Your business can be held liable for harassment by your workers unless you can show you took all reasonable steps to prevent it. This is where up-to-date policies, training, leadership messaging and prompt response to concerns become your best defence.

5) Duty Of Care

Beyond specific statutes, employers have a general duty of care to provide a safe workplace. If someone is harmed because reasonable protections were missing, you could face legal and insurance consequences.

How To Prevent Sexual Harassment: A Practical Plan For Small Teams

Prevention is both a legal obligation and your best risk management strategy. You don’t need a large HR team - you just need clear, consistent steps that match your business.

Set Expectations In Writing

• Adopt a short, plain-English Workplace Policy covering sexual harassment, bullying, discrimination, hostile work environment, and victimisation. Include how to report, how you’ll handle reports, potential outcomes, and support options.
• Embed conduct standards and disciplinary processes in your Employment Contract and contractor agreements (e.g. code of conduct, use of devices and communications, event behaviour).
• Bundle your policies in a simple Staff Handbook so onboarding is consistent. A centralised Staff Handbook helps ensure everyone sees the same rules from day one.

Train And Talk Regularly

• Run short, practical training (e.g. 45 minutes annually) covering what sexual harassment looks like, bystander tips, how to report concerns, and anti-victimisation. Keep attendance records.
• Train managers on early intervention, trauma-informed responses and procedural fairness (how to avoid prejudging and how to document actions).
• Reinforce expectations at team meetings and before events. Leadership tone is a key control measure.

Design Safer Workplaces And Events

• Plan work events with risk in mind (clear behaviour expectations, responsible alcohol service, designated contact person, safe transport options).
• Set rules for online tools and group chats (appropriate channels, no off-hours banter that can cross lines, reporting function if something goes wrong).
• Manage lone-working or isolated scenarios (e.g. client visits) with check-in processes and practical safety steps.

Offer Multiple Reporting Options

• Allow staff to report to a manager, a senior leader, or a designated email/phone. Provide an option to report anonymously, noting limits to what can be investigated.
• Make it easy for witnesses to speak up (bystander reporting). Emphasise no retaliation.
• Publish a simple one-page “What happens when you report” guide so people know what to expect.

Audit And Improve

• Review incidents, near misses and feedback quarterly. Are certain locations, rosters or clients higher risk?
• Update controls accordingly (e.g., supervision, rostering changes, additional training modules, clearer signposting at events).
• Document your assessments and updates - this shows you are meeting your positive duty.

Hiring, Culture And Everyday Practices That Reduce Risk

Prevention starts before day one and carries through everyday decisions.

• Use structured interviews and avoid illegal interview questions that could signal bias or expose you to complaints.
• Reference-check managers and supervisors carefully - leadership behaviour drives culture.
• Onboard thoroughly: policy acknowledgement, conduct expectations, reporting options and who to contact if something feels off.
• Lead by example: managers should model respectful language, intervene early and praise bystander action.
• Follow up after events or trips: ask “Did everyone feel safe? Anything we should change next time?”

What To Do If You Receive A Sexual Harassment Complaint

Timely, fair handling is crucial for safety, trust and legal compliance. Here’s a practical approach.

1) Prioritise Safety And Support

• Check immediate safety and separate the parties if needed. Adjust shifts, move desks or reassign work temporarily.
• Offer support options (HR/owner contact, counselling, medical care). Make it clear there will be no retaliation for reporting.

2) Acknowledge And Record

• Thank the person for speaking up and explain next steps in plain English.
• Take a neutral, factual note: who, what, when, where, any witnesses or documents (screenshots, messages).

3) Decide How To Handle It

• Low-level conduct might be resolved through early intervention (if the complainant agrees). More serious or disputed allegations should be investigated.
• If there’s a serious risk or potential evidence tampering, consider standing someone down pending investigation (check the contract or applicable industrial instrument first).

4) Investigate Fairly

• Appoint an impartial investigator (internal or external, depending on complexity and perceived bias).
• Give a clear allegation letter and a fair chance to respond. Keep interviews confidential and respectful.
• Collect relevant evidence (documents, messages, CCTV where lawful, witness statements). Apply the balance of probabilities standard.
• Make a finding and record your reasoning and outcome.

5) Take Outcome Actions

• If substantiated, decide on proportionate outcomes: training, warnings, role changes or termination following a fair process (often via a show cause letter and an opportunity to respond).
• If not substantiated, consider risk controls (separation of parties, training, closer supervision) to maintain a safe workplace for everyone.
• Close the loop with both parties and remind them of anti-victimisation protections.

If the conduct may be criminal (e.g. sexual assault), support the person to contact police if they wish. Seek legal advice on your reporting obligations and next steps.

Consequences Of Getting It Wrong (And Right)

Getting this wrong can be costly - financially and culturally. Potential outcomes include:

• Orders and compensation through the Fair Work Commission or courts.
• AHRC enforcement action for failing the positive duty.
• Workers’ compensation claims, lost productivity and turnover.
• Reputational damage and lost tenders or contracts.

Getting it right reduces risk and builds trust. A respectful culture is also a proven driver of retention and performance - which matters even more in small teams.

Essential Documents To Support Compliance

Strong, tailored documents help you meet your positive duty, set clear expectations and respond consistently if issues arise. Most small businesses should consider:

• Workplace Policy (Harassment, Bullying & Discrimination): Defines unacceptable conduct, reporting options, investigation steps, confidentiality, anti-victimisation and potential outcomes. A concise, accessible document works best - this sits alongside your other Workplace Policy suite.
• Employment Contract: Builds in conduct, lawful directions, confidentiality, device/communications rules, disciplinary processes and event expectations. Start new hires with a clear, current Employment Contract so there’s no ambiguity.
• Staff Handbook: Centralises your key policies (harassment, leave, social media, IT, grievance) in one place. A streamlined Staff Handbook makes onboarding and compliance reliable.
• Investigation Templates: Allegation letters, interview outlines, confidentiality acknowledgements and outcome letters help ensure procedural fairness and consistent processes.
• Contractor Clauses: Mirror behavioural standards and reporting obligations in contractor and supplier agreements, especially where your people work on third-party sites.
• Event Management Guidelines: A short checklist for higher-risk activities (alcohol service, transport, designated contact, signage about reporting) demonstrates proactive control.

If you’re already dealing with allegations or claims, our team supports employers with workplace harassment and discrimination claims, helping you manage risk and respond lawfully.

Frequently Asked Questions

Do small businesses really need formal policies and training?

Yes. The positive duty applies to all employers. For small teams, “reasonable and proportionate” doesn’t mean complex - it means clear policies, practical training and simple reporting channels that actually work in your business.

Can I deal with a first complaint informally?

Sometimes. If the conduct is low-level and the complainant prefers an informal resolution, early intervention can work. Always document what you did, confirm anti-victimisation protections, and keep the option open to investigate if issues continue or escalate.

Do I have to suspend someone during an investigation?

Not always. Consider risks, the seriousness of allegations and available controls (separation of duties, supervision). Where needed, follow a lawful process for standing an employee down pending investigation.

What if a customer or supplier harasses my staff?

Your duty extends to risks from third parties. Plan for this in your policies and contracts, empower staff to report issues, and take reasonable steps (warnings, removing access, reassigning staff). Document the steps you take.

Are group chats and DMs covered?

Yes. If a platform or chat is linked to work, the same standards apply. Set rules, provide reporting options and intervene early if you see concerning behaviour.

Key Takeaways

• Australian sexual harassment law gives employers a positive duty to prevent harassment, sex discrimination and hostile work environments - prevention is not optional.
• Reasonable steps for small businesses include clear policies, practical training, leadership messaging, safe reporting and timely, fair responses to issues.
• Sexual harassment is also a WHS risk; assess psychosocial hazards and put proportionate controls in place, then review them regularly.
• Set expectations in writing with a Workplace Policy, strong Employment Contract terms and a simple Staff Handbook to support compliance and culture.
• Handle complaints with safety first, impartial investigation and procedural fairness; use tools like show cause processes and consider stand down only where necessary.
• Good documentation, consistent action and continuous improvement reduce legal risk and build a respectful, high-performing workplace.

If you’d like a consultation on sexual harassment law and setting up the right policies, contracts and processes for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.