Workplace Harassment Laws in Australia: Employer’s Compliance Guide

Harassment at work isn’t a buzzword - it’s a real risk to people and to your business. As an employer in Australia, you’re legally required to prevent and respond to harassment, bullying and discrimination, and community expectations are rising.

If you’re unsure what “compliance” actually looks like day to day, you’re not alone. In this guide, we explain what counts as harassment, which Australian laws apply, what “all reasonable steps” means in practice, and how to set up policies, training and processes that protect your team and your business.

The aim is confidence. With the right framework, you can meet your obligations, reduce legal risk and foster a safe, respectful workplace from day one.

What Counts As Workplace Harassment in Australia?

“Workplace harassment” covers unwelcome conduct that humiliates, offends, intimidates or threatens a person at work. It can be verbal, physical, written or online, and it can come from anyone - managers, co-workers, contractors, customers or clients.

Common Types of Prohibited Conduct

• Sexual harassment: Unwelcome conduct of a sexual nature (including requests for sexual favours, sexual comments or advances, or creating a hostile work environment because of sex).
• Sex-based harassment: Unwelcome conduct based on a person’s sex that is demeaning or intimidating, even if it isn’t sexual in nature.
• Bullying: Repeated, unreasonable behaviour that creates a risk to health and safety (for example, belittling, exclusion, threats or unreasonable work demands over time).
• Discrimination: Unfavourable treatment because of a protected attribute (e.g. sex, race, age, disability, religion, pregnancy, sexual orientation).
• Victimisation: Unfavourable treatment because someone made a complaint or helped with an investigation.

Not Every Disagreement Is Harassment - But Act Early

One-off disagreements or reasonable management action carried out in a reasonable way won’t usually amount to bullying. However, sexual harassment and discrimination can occur in a single incident, and repeated unreasonable behaviour can quickly escalate.

When in doubt, act early and address conduct before it becomes a pattern. That proactive approach is part of your legal duty to provide a safe workplace.

Which Laws Apply To Workplace Harassment?

There isn’t a single “Workplace Harassment Act” in Australia. Instead, a framework of Commonwealth and state/territory laws work together to prohibit harassment and require safe systems of work.

Core Federal and State/Territory Laws

• Fair Work Act 2009 (Cth): Prohibits sexual harassment in connection with work (Part 3-5A) and empowers the Fair Work Commission (FWC) to make stop sexual harassment and stop bullying orders. The FWC does not issue fines - monetary penalties or compensation are determined by courts and tribunals.
• Sex Discrimination Act 1984 (Cth): Prohibits sexual harassment, sex-based harassment and hostile work environments on the ground of sex. Employers have a positive duty to take reasonable and proportionate measures to eliminate unlawful sex discrimination, sexual harassment and related conduct. The Australian Human Rights Commission can now inquire into compliance and, where necessary, seek enforceable undertakings or Federal Court orders.
• WHS (Work Health and Safety) laws: Require you to provide a safe working environment, which includes managing psychosocial hazards such as bullying, harassment and occupational stress.
• State and territory anti-discrimination laws: Prohibit discrimination, sexual harassment and victimisation in each jurisdiction (e.g. NSW, VIC, QLD, WA, SA, TAS, ACT, NT).

Your Duty of Care and Vicarious Liability

As an employer, you owe a legal duty of care to provide a safe workplace. You can also be “vicariously liable” for unlawful conduct by your staff unless you can show you took all reasonable steps to prevent it. That’s why policies, training, leadership accountability and fair complaint handling are essential, not optional.

Mental Health and Psychosocial Risks

Psychological safety is part of WHS. Managing workload, role clarity, respectful behaviours and early intervention are all part of your WHS duties. If you’re building a plan, it’s worth reading about your obligations regarding employee mental health in parallel with your anti-harassment measures.

What Does “All Reasonable Steps” Look Like in Practice?

There’s no one-size-fits-all checklist, but regulators expect a blend of prevention, capability and accountability. Here’s what good practice usually includes.

1) A Clear, Accessible Policy

Set expectations in writing and make them easy to find. Your policy should define harassment, bullying, discrimination and victimisation; explain bystander expectations; outline confidential reporting options and investigation steps; set consequences; and include anti-victimisation safeguards.

Many businesses combine this with other key policies in a single, searchable Staff Handbook so nothing falls through the cracks.

2) Regular, Role-Appropriate Training

Induct all workers (including casuals and contractors) and refresh training regularly. Tailor extra modules for leaders and complaint handlers covering risk assessments, trauma-informed responses and procedural fairness. Keep records of who attended and when.

3) Capable, Accountable Leadership

Leaders should role-model respectful conduct, act on red flags quickly, and be accountable for team culture. This isn’t just “soft skills” - it’s part of discharging your legal duty to prevent harm.

4) Safe, Multiple Reporting Channels

Offer more than one way to speak up (e.g. manager, HR, anonymous channel, external hotline). Protect confidentiality as far as possible and make it clear that victimisation is prohibited.

5) Early Intervention and Fair Investigations

Act on concerns promptly - small issues are easier to resolve early. Where a formal complaint is made, follow a fair process (more on this below) and document your steps.

6) Ongoing Risk Management

Assess psychosocial hazards, consult workers, and track trends from complaints, exit interviews and surveys. Update controls (policy, training, supervision, rostering, work design) as your business evolves.

How Should You Handle Complaints and Investigations?

Getting the process right reduces harm and legal risk. It also shows regulators and tribunals that you take your obligations seriously.

Receiving a Complaint

• Acknowledge quickly and outline next steps and expected timelines.
• Check safety: Put immediate controls in place if needed (for example, temporary separation of parties). In some cases, a neutral suspension on pay or a change in reporting lines may be appropriate.
• Clarify the process and offer support options (EAP, trusted contact person, leave where appropriate).

Choosing the Right Response

Options range from facilitated conversations and early resolution to formal investigations by an internal or external investigator. Consider the seriousness of allegations, the wishes of the complainant, workplace safety, and whether specialised expertise is required.

Conducting a Fair Investigation

• Scope the issues and identify the alleged conduct and relevant policies or laws.
• Collect evidence efficiently and impartially (documents, messages, interviews).
• Respect procedural fairness: give the respondent a genuine opportunity to respond to the substance of the allegations.
• Make findings on the balance of probabilities, aligned to your policy definitions and legal standards.
• Decide outcomes proportionate to the findings (training, coaching, warnings, redeployment or, where justified, termination). If disciplinary steps are needed, use clear processes such as issuing show cause letters before making final decisions.

Privacy, Confidentiality and NDAs - Use With Care

Handle personal information securely and only share it on a need-to-know basis. If you use confidentiality terms or an NDA around a resolution, ensure it does not prevent lawful disclosures (for example, getting legal or medical advice, speaking to a regulator, whistleblowing where protected, or seeking support from a close family member). Never use confidentiality to silence safety concerns going forward.

Regulatory and Tribunal Pathways

Employees can apply to the FWC for stop sexual harassment or stop bullying orders. Discrimination and sexual harassment matters can also proceed through the Australian Human Rights Commission or state/territory human rights bodies and, if unresolved, to courts. Courts and tribunals (not the FWC) determine compensation and civil penalties.

What Policies, Contracts and Records Should You Have?

Your documents are the backbone of compliance. They set expectations, guide decisions and demonstrate that you took reasonable steps to prevent and respond to unlawful conduct.

Core Workplace Documents

• Anti-harassment and bullying policy: Defines unacceptable conduct, explains reporting channels, investigation steps and outcomes, and bans victimisation.
• Code of conduct: Summarises expectations for respectful behaviour, use of technology, bystander action and leadership standards.
• Staff Handbook: A central, up-to-date bundle of policies workers can easily access. Many employers maintain this as a single source of truth via a Staff Handbook.
• Privacy Policy: Explains how personal information gathered through HR processes and investigations is handled. If you collect any personal data, you’ll usually need a clear, compliant Privacy Policy.
• Whistleblower Policy (for eligible companies): Enables protected disclosures and sets up safe reporting channels; a practical safeguard against retaliation. Larger entities and certain companies should consider a dedicated Whistleblower Policy.
• Complaint handling procedure: A step-by-step process document for managers and HR, including templates and timeframes.

Contracts and Templates

• Employment Contract: Should reference and require compliance with your policies, set behavioural expectations, and include clauses that support lawful directions and confidentiality. If you’re hiring, use a tailored Employment Contract suited to the role and award coverage.
• Manager guidance and letter templates: Include caution, improvement plan and show-cause templates to help leaders act fairly and consistently.
• Resolution and settlement templates: If a matter resolves by agreement, ensure documents are tailored, lawful and do not breach whistleblowing or statutory rights. Where termination is contemplated, align your approach with your employee termination documents.

Record Keeping

Keep training attendance, policy acknowledgement, complaints, investigation notes and outcomes in a secure system with restricted access. Good records help you manage risk and evidence your “reasonable steps” if your response is ever reviewed.

Putting It All Together: A Practical Compliance Plan

Here’s a straightforward plan you can adapt to your size and risk profile.

Step 1: Assess Your Risks

Identify where issues might arise in your business (for example, client-facing roles, remote workers, isolated work, night shifts, power imbalances, alcohol at events). Consider both the likelihood and potential harm. Consult workers as part of this process.

Step 2: Update Your Policy Framework

Draft or refresh your anti-harassment policy, code of conduct, privacy settings and complaint procedure. Consolidate them in an accessible handbook and ensure your Employment Contract requires workers to follow those policies.

Step 3: Train Your Team

Run induction and refresher training for all staff and separate sessions for leaders and complaint handlers. Include clear examples, bystander actions and reporting options. Schedule annual refreshers and after any incident or policy update.

Step 4: Strengthen Reporting and Response

Offer multiple reporting channels, protect confidentiality, and establish triage criteria. Equip managers with practical guidance, including when to escalate, how to run early interventions, and when a formal investigation is required.

Step 5: Investigate Fairly and Document

For formal matters, follow a defined process: scope, evidence collection, interviews, natural justice for the respondent, findings and proportionate outcomes. Use clear correspondence and, where disciplinary action is contemplated, follow the steps associated with show-cause processes.

Step 6: Monitor, Review and Improve

Audit your controls at least annually. Track themes from complaints and surveys, refresh training content, and update your policy framework as your business grows or the law changes.

Frequently Asked Questions

Do We Need a Written Harassment Policy by Law?

There’s no single provision that says “you must have a policy,” but in practice you must be able to show you took reasonable and proportionate measures to eliminate unlawful conduct (the positive duty under the Sex Discrimination Act) and met your WHS duties. A clear, written policy and training program are the most effective - and evidentiary - way to show this.

Are Casuals, Contractors and Volunteers Covered?

Yes. Harassment laws and WHS duties cover all workers - including part-time, casual, labour-hire, contractors and volunteers - as well as people performing work in your business such as interns and work experience participants.

What Are the Consequences of Non-Compliance?

Outcomes vary, but can include FWC stop orders, compensation and civil penalties ordered by courts, enforceable undertakings and compliance notices (for positive duty breaches), legal costs and enforceable work health and safety actions. The reputational and productivity impacts of unresolved issues are often even more significant.

Can We Use NDAs to Resolve Complaints?

Confidentiality can help protect privacy and encourage resolution, but it must be used carefully. Any NDA or confidentiality clause should allow lawful disclosures to regulators, lawyers and medical professionals, and must not prevent workers from raising safety concerns or making protected disclosures under a Whistleblower Policy where applicable.

Key Takeaways

• Workplace harassment compliance is built on prevention, capability and accountability - clear policies, regular training, safe reporting and fair investigations.
• The legal framework includes the Fair Work Act (stop orders and sexual harassment prohibition), the Sex Discrimination Act (including the positive duty) and WHS laws that require you to manage psychosocial risks.
• Employers can be vicariously liable for unlawful conduct unless they can show they took all reasonable steps to prevent it - your duty of care is both legal and practical.
• Use fit-for-purpose documents such as an up-to-date Staff Handbook, policy suite, a compliant Employment Contract, and a privacy framework including a clear Privacy Policy.
• Handle complaints promptly and fairly, protect confidentiality, avoid victimisation, and use tools like show-cause processes and tailored settlement documents when appropriate.
• Review your approach regularly - culture and risks evolve, and your controls should evolve with them.

If you would like a consultation on workplace harassment laws and compliance for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.