Sexual Harassment Reporting At Work

Running a small business is busy enough without having to worry about complex workplace laws. But when it comes to workplace sexual harassment laws, “not knowing” isn’t a defence - and the consequences of getting it wrong can be serious.

The good news is you can take practical steps to reduce risk, protect your team, and build a safer workplace culture. And in many cases, good legal compliance also supports retention, performance and your reputation in the market.

In this guide, we’ll walk you through what Australia’s sexual harassment in the workplace legislation means for small businesses, what your legal duties look like in practice, and what you can put in place now to protect your business.

What Counts As Sexual Harassment Under Australian Law?

Sexual harassment is more than just “bad behaviour” or an awkward joke. Under Australian law, it generally refers to unwelcome conduct of a sexual nature where a reasonable person would anticipate the behaviour could offend, humiliate or intimidate someone.

For small businesses, the key point is that sexual harassment isn’t limited to obvious physical conduct. It can include verbal, written, visual, online, or indirect behaviour.

Common Examples In A Workplace Setting

Sexual harassment can take many forms, including:

unwelcome touching, hugging, kissing or physical contact
staring, leering, or intrusive comments about someone’s appearance
sexually suggestive jokes, remarks or “banter”
asking intrusive questions about someone’s sexual history or relationships
displaying pornographic or sexually explicit material (including on phones or laptops at work)
sending sexual messages, images or requests via text, email, social media, or workplace chat tools
repeatedly asking someone out after they’ve said no
making employment benefits (shifts, promotions, pay rises) conditional on sexual conduct

Importantly, conduct can still be sexual harassment even if the person involved says they “didn’t mean it,” or if they claim it was “just a joke.” The legal focus is on whether the conduct was unwelcome and whether a reasonable person would expect it could cause harm.

It Doesn’t Have To Happen In The Office

Many small business owners are surprised to learn that sexual harassment can happen in contexts connected to work, including:

work functions and Christmas parties
conferences, networking events and client entertainment
work travel
work-related group chats and social media
remote work environments (including video calls and messaging platforms)

If it’s connected to the workplace or work relationships, it can still fall within sexual harassment in the workplace legislation.

Which Sexual Harassment In The Workplace Legislation Applies In Australia?

Australian sexual harassment obligations don’t come from just one place. Your duties can arise under a mix of:

federal anti-discrimination laws (including the Sex Discrimination Act 1984 (Cth))
state and territory anti-discrimination laws
the Fair Work Act framework (including Fair Work Commission stop sexual harassment orders and adverse action risks)
work health and safety (WHS) laws (psychosocial risks, bullying and harassment hazards)

In practice, you don’t need to memorise every Act to run your business properly - but you do need to understand what your business is expected to do.

The Core Idea: Employers Must Prevent And Respond

Across the legal framework, the consistent expectation is that workplaces should be safe and respectful, and businesses should take steps to:

prevent harassment from occurring (not just react after the fact)
respond appropriately if an issue is raised
avoid victimisation (for example, punishing someone for making a complaint)
manage workplace risks, including psychosocial risks

In addition, under the Sex Discrimination Act 1984 (Cth), many employers and persons conducting a business or undertaking (PCBUs) have a positive duty to take reasonable and proportionate measures to eliminate, as far as possible, sexual harassment (and related unlawful conduct) in connection with work.

This is where small businesses can either significantly reduce risk - or accidentally increase it - depending on whether they have clear processes in place.

Why “We’re A Small Team” Isn’t A Free Pass

Many small businesses operate like a close-knit group, and that can be a huge strength. But legally, informality can become a vulnerability if it means:

there are no clear behaviour standards
complaints are handled ad hoc
managers aren’t trained on what to do
there’s no written record of decisions

Even if your workplace is friendly, you still need structured guardrails. A properly drafted Employment Contract and workplace policies can help set expectations early and reduce ambiguity if something goes wrong.

What Are Your Obligations As A Small Business Owner Or Employer?

If you engage workers - including employees (casual, part-time and full-time) and often contractors or labour hire workers, depending on the relationship and the laws that apply - you should assume you have obligations to take reasonable steps to ensure the workplace is safe and free from harassment.

This is not just about avoiding claims - it’s also about running a stable, professional business where people can do their best work.

1) You Need To Take Reasonable Preventative Steps

“Reasonable steps” (and under federal law, “reasonable and proportionate measures”) will depend on your business size and risk profile, but commonly includes:

having a clear sexual harassment and respectful workplace policy
training staff and managers (including what sexual harassment looks like)
setting clear reporting lines and options (not just “tell your manager”)
responding quickly when issues are raised
documenting actions taken

For example, if your business has late-night shifts, close physical work (like hospitality, retail, trades, healthcare or beauty services), or a younger workforce, you may need to be more proactive because the risk profile is higher.

2) You Must Handle Complaints Properly (Even If They’re Informal)

Small businesses often receive concerns as “quiet comments” rather than formal complaints. It might sound like:

“Can I talk to you about something awkward?”
“I don’t want to cause drama, but…”
“Please don’t tell anyone, but…”

These moments matter. If you brush them off or delay, you may escalate legal and cultural risk. You don’t need to jump straight to dismissal, but you do need to treat the issue seriously, gather information carefully, and take proportionate action.

3) You Need To Avoid Retaliation Or Victimisation

Even if you think a complaint is exaggerated or mistaken, you should avoid responses like:

reducing shifts
cutting hours
excluding the person from work activities
creating a hostile environment

These kinds of actions can create additional legal exposure and can be more damaging than the original incident. If roster or role changes are genuinely required, document the business reasons and consider getting legal advice first.

What Practical Steps Can You Put In Place To Reduce Risk?

Complying with sexual harassment in the workplace legislation isn’t just a legal box-ticking exercise. The right foundations make it easier to manage issues calmly, fairly and consistently if they arise.

Step 1: Set Clear Standards From Day One

Start by setting expectations about behaviour and respect at work. You can do this through:

employment agreements that reference workplace policies and behavioural expectations
onboarding documents and inductions
regular reminders (especially before events like parties or conferences)

This is also where having a robust set of workplace policies can help. Many businesses include them in a broader handbook or policy suite. If your business also handles sensitive workplace information (like complaint reports), it’s worth thinking about privacy and confidentiality settings as well - especially if records are kept digitally.

Step 2: Train Managers (Not Just Staff)

In small businesses, a “manager” might be a team leader, a senior staff member, or even you as the owner-operator. Whoever is receiving complaints needs to understand:

how to listen without making promises they can’t keep (like “I won’t tell anyone”)
how to record concerns factually
when to escalate the issue
how to avoid bias and victimisation

Training doesn’t need to be complicated, but it should be consistent and documented.

Step 3: Create A Clear, Safe Reporting Pathway

A good reporting pathway gives people options. For example:

report to a direct manager
report to an alternative contact (in case the manager is involved)
report to a director or external HR advisor

Even in a small team, having at least two reporting options can make a big difference.

Step 4: Investigate Fairly And Proportionately

Not every complaint requires a full formal investigation, but every complaint should be handled seriously.

Depending on the situation, a proportionate response might include:

informal resolution (only where appropriate and safe)
formal warnings
training or coaching
adjusting reporting lines or supervision arrangements
disciplinary action, including termination in serious cases

If you’re considering termination, it’s important to approach it carefully and in line with employment law processes. Issues around misconduct, procedural fairness and documentation can quickly become complicated.

Step 5: Keep Records (Without Creating A Gossip File)

Good records help show you took the complaint seriously and responded responsibly. But they must be handled confidentially and stored securely.

Records might include:

dates and times of reports
what was alleged (in factual language)
steps taken to investigate
outcomes and actions taken

If your business uses workplace surveillance or recordings (for example CCTV), be careful: the privacy and surveillance rules can vary by state, and there are strict rules around recordings. If this is relevant to your workplace, it’s worth reviewing your approach to CCTV laws and ensuring your policies match what you actually do in practice.

What Legal Documents And Policies Should Small Businesses Have In Place?

If something goes wrong, one of the first things regulators, tribunals or lawyers will look at is: What did the business have in place to prevent this?

While documents aren’t the whole answer, they’re an essential part of reducing risk - and they help you act consistently and confidently.

Depending on your business, you may want to consider:

Employment Contract: sets out the relationship with staff, including expectations and pathways for managing misconduct (an Employment Contract should be tailored to your role types and awards).
Workplace Behaviour / Anti-Harassment Policy: defines sexual harassment, gives examples, and explains reporting and investigation steps.
Work Health And Safety Processes: identifies and manages psychosocial risks (including harassment risks) as part of your WHS system.
Performance And Disciplinary Process: outlines how you issue warnings, investigate allegations, and handle misconduct consistently.
Privacy And Confidentiality Controls: explains how complaint information is handled and stored, particularly if you’re collecting personal information in the business more broadly (many businesses also need a Privacy Policy for customer and employee-facing practices).
Workplace Surveillance / Camera Policy (If Applicable): sets expectations about cameras and monitoring (this should align with your obligations around cameras in the workplace and how footage is used).

Not every business needs every document above. But if you’re employing staff, it’s worth getting your foundations reviewed so you’re not relying on generic templates that don’t reflect your actual workplace.

Common Compliance Mistakes Small Businesses Make (And How To Avoid Them)

Small businesses rarely set out to get this wrong. The problems usually come from moving fast, relying on trust, and trying to “handle it quietly.” Here are some common traps we see.

1) Waiting Until There’s A Problem

If your first policy is written after a complaint, you’ve already missed a key prevention step. Even a simple, clear policy and induction process can significantly reduce confusion and improve reporting.

2) Treating Sexual Harassment As A “Personality Issue”

Sexual harassment is not the same as two staff members “not getting along.” If you minimise it as interpersonal conflict, you risk failing to meet your obligations and damaging workplace trust.

3) Not Taking Action Because The Person “Didn’t Complain Formally”

Many people do not want to put something in writing. They may fear job loss, shifts being cut, or being labelled “difficult.” If you only act on formal complaints, you may miss early warning signs.

4) Letting Seniority Or Revenue Influence Decisions

Sometimes the person accused of harassment is a high performer, a manager, or someone who brings in clients. From a legal and risk perspective, that’s exactly when you need a consistent process.

5) Poor Documentation

If a complaint escalates, not having records can make it hard to show you responded appropriately. Keep notes, follow your process, and store information securely.

As a general rule, if your business is already working on broader workplace compliance (like rosters, leave, pay and disciplinary processes), it can be a good time to do a wider employment law check-up. For example, ensuring your approach to workplace breaks and other conditions aligns with your contracts and awards can reduce disputes that often sit alongside harassment complaints.

Key Takeaways

Sexual harassment in the workplace legislation applies to small businesses across Australia, and expectations include prevention as well as response (including, under federal law, a positive duty to take reasonable and proportionate measures to prevent sexual harassment).
Sexual harassment can include verbal, physical, visual and online conduct, and can occur at work events, during travel, or in work-related communications.
As an employer, you should take reasonable steps to prevent harassment, provide safe reporting pathways, and respond promptly and fairly to concerns (and be aware the Fair Work Commission can make stop sexual harassment orders in appropriate cases).
Clear policies, manager training, and proper documentation reduce risk and make it easier to handle issues calmly and consistently.
Strong legal foundations - including a tailored Employment Contract and practical workplace policies - help you set expectations and protect your business if a complaint arises.

If you’d like help reviewing your workplace policies or putting the right documents and processes in place for sexual harassment compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Sexual Harassment Reporting And Response Steps For Small Business Employers