Respect@Work: The cost of ignoring your obligations

Australian employers are now legally required to prevent sexual harassment, not just respond to it. 

That shift, introduced through the Respect@Work reforms, is being actively enforced, and recent court decisions show that the financial consequences of getting it wrong are significant.

Here's what your business needs to know.

What changed, and why it matters

Respect@Work emerged from the Australian Human Rights Commission's 2020 National Inquiry into Sexual Harassment in Australian Workplaces. The reforms that followed represent the most significant overhaul of Australian workplace sexual harassment law in decades.

Under the amended Sex Discrimination Act 1984 (Cth), and reinforced through work health and safety legislation, employers now carry a positive duty to take reasonable and proportionate steps to eliminate:

• Sexual harassment
• Sex-based harassment
• Sex discrimination
• Conduct that creates a hostile workplace environment on the grounds of sex
• Victimisation

That word eliminate is doing a lot of work. This is not a ‘respond when something goes wrong’ obligation. It is a ‘take action before it does’ one. The Australian Human Rights Commission (AHRC) now has the power to investigate, conduct inquiries, and enter into enforceable undertakings with employers who are not meeting the standard.

What enforcement actually looks like

Since the Fair Work Act amendments took effect in March 2023, formal complaint volumes have climbed. The AHRC is receiving around 30% more complaints annually than pre-pandemic levels, and 2024-25 marked the first full year of the Commission operating as an active regulator of the positive duty.

But formal complaints are just the surface. The AHRC's Fifth National Survey on Sexual Harassment found that of the one in three people who experienced workplace sexual harassment, only one in five ever made a formal report. It is clear there is a significant gap between the reality and what regulators can respond to.

We are seeing enforcement play out in the courts, and they're sending a clear message to employers.

What the courts are saying

Recent decisions under the Sex Discrimination Act show a marked upward trend in damages, with general damages awards now commonly ranging from $70,000 to $160,000.

MAGAR v KHAN

Damages - $305,000 total

$160,000 in general damages (the highest such award in Australian history) plus $130,000 for economic loss.

A landmark decision that set the new benchmark.

RICHARDSON V ORACLE CORPORATION AUSTRALIA PTY LTD

Damages - $130,000 total

Ms Richardson was initially awarded $18,000. On appeal, the Full Federal Court increased this to $100,000 in general damages plus $30,000 for economic loss. Oracle was found vicariously liable because its policies and online training were deemed inadequate. They did not meet the legal threshold of taking "all reasonable steps" to prevent harassment.

What training should look like

Meeting your positive duty obligations requires more than a one-off online induction. To satisfy the "all reasonable steps" defence, training needs to be:

• Regular and ongoing. Workplace culture is built over time. Training should be repeated at meaningful intervals, not treated as a one-and-done exercise.
• Practical and scenario-based. People need to understand what harassment looks like in real situations relevant to your workplace, not just a formal definition.
• Role-specific for leaders. Managers and supervisors carry additional responsibilities under both the Sex Discrimination Act and WHS legislation. They need targeted training on how to identify, respond to, and escalate concerns.
• Backed by clear policies and reporting pathways. Training alone is not enough. It needs to sit alongside accessible, trusted reporting mechanisms and documented workplace policies.
• Reinforced through culture. Leadership modelling, regular communication, and visible commitment from the top all contribute to genuine compliance.

The AHRC's Positive Duty Compliance Framework sets out what good looks like across seven standards, including leadership, knowledge and capability, and risk assessment.

The bottom line

Respect@Work has fundamentally changed what is expected of Australian employers. The regulator has enforcement powers and is now actively using them, with the courts awarding damages at a level that should get every business leader's attention.

Our Workplace Relations team can assist you with compliance and deliver on-site training customised to your industry, your workforce, and your legal obligations. Contact Alan Doyle on 03 9864 6000 or visit our website to find out more.