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Can Companies in Australia Be Fined for Sexual Harassment?

Yes. Companies can be fined, sued, and held legally responsible for sexual harassment in the workplace under Australian law.


Workplace sexual harassment is not just a personal issue between individuals — it’s a legal and organisational issue. Employers have a duty of care to prevent harassment, and failure to do so can lead to serious financial, legal, and reputational consequences.



What Is Considered Sexual Harassment?


Under the Sex Discrimination Act 1984, sexual harassment is any unwelcome conduct of a sexual nature that makes someone feel offended, humiliated or intimidated. This includes:

• Unwanted physical touching

• Sexual jokes or comments

• Inappropriate emails, messages or images

• Requests for sexual favours

• Behaviour that creates a hostile or uncomfortable work environment



Employer Responsibility Under Australian Law


Workplaces are legally required to:

• Provide a safe work environment free from sexual harassment

• Take proactive steps to prevent harassment from occurring

• Respond appropriately to complaints when they arise


Under recent reforms - including the Respect@Work legislation - employers now have a positive duty to eliminate sexual harassment, not just respond after the fact.


This means that a company can be found liable even if no formal complaint was made - if it failed to take reasonable steps to prevent harassment.



Legal Consequences and Fines


Companies that breach their obligations may face:


1. Fines and Penalties


The Australian Human Rights Commission (AHRC) can investigate claims of workplace harassment and refer serious breaches to the Federal Court or Federal Circuit Court, where:

• Employers can be fined

• Compensation can be awarded to victims

• Enforcement orders may be issued to change workplace practices


2. Compensation Orders


Employees who’ve experienced sexual harassment can be awarded financial compensation, which may include:

• General damages for distress and humiliation

• Loss of income

• Medical or psychological costs


Payouts can range from a few thousand to hundreds of thousands of dollars, depending on the severity and impact of the conduct.


3. Public Investigations and Reputational Damage


The AHRC may conduct public inquiries or investigations. If a company is found to have systemic issues, the reputational fallout can lead to:

• Loss of clients

• Public backlash

• Impact on recruitment and retention

• Shareholder consequences (for listed companies)


A Landmark Shift: Respect@Work Reforms


The Respect@Work Report (2020), led by Sex Discrimination Commissioner Kate Jenkins, prompted major changes to workplace sexual harassment laws, including:

• A positive duty on employers to actively prevent sexual harassment

• Powers granted to the AHRC to investigate and enforce compliance

• Stronger penalties for non-compliance and systemic failure


These reforms came into effect through the Sex Discrimination and Fair Work (Respect at Work) Amendment Act 2021 and further strengthened in 2022 and 2023.



Can Individuals Also Be Held Responsible?


Yes. Both the individual harasser and the employer can be held liable. If a manager, co-worker or contractor engages in harassment, and the company has not taken reasonable steps to prevent it, both parties can be named in a legal action.


Sexual harassment in the workplace is not just a personal matter, it is a legal risk for employers and a clear breach of workplace health and safety standards.


Companies that ignore or mishandle sexual harassment complaints not only face fines and lawsuits, but also risk damaging their brand, losing staff, and attracting ongoing legal scrutiny.


The message is clear: Prevention is no longer optional — it’s a legal obligation.



Helpful Resources

• Australian Human Rights Commission (AHRC)

• Respect@Work Guidelines

• Fair Work Ombudsman

• Safe Work Australia – Sexual Harassment as a WHS Issue

 
 
 
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