Employee awarded $305,000 in sexual harassment case
The Federal Court of Australia has ordered the owner of a Mad Mex franchise in Sydney to pay $305,000 to a former employee after finding he sexually harassed and victimised her.
The Court found that the manager engaged in repeated acts of sexual harassment, including making sexual comments, showing her pornography, and touching her with sex toys. After the employee complained, the employer sent two Concerns Notices (often used as precursors to defamation threats) to her, which amounted to unlawful victimisation.
The Court accepted that the employer exploited the worker’s age, visa status, and isolation, and that the workplace culture normalised sexualised behaviour toward women. The damages constitute the highest sexual harassment pay out ever ordered in Australia under the federal sex discrimination legislation.
Use of AI could worsen racism and sexism in workplaces
Australia’s Human Rights Commissioner, has warned that unregulated AI systems pose risks of perpetuating bias if not grounded in locally diverse data. She believes the pursuit of productivity gains from AI should not come at the expense of discrimination if the technology is not properly regulated.
The Commissioner advocates for laws enforcing transparency, bias testing, and human oversight in AI deployment.
What can we learn from this? Employers must implement AI responsibly by respecting rights and ensuring fairness in technology use.
Rio Tinto CEO advocates for psychological safety over toughness
Rio Tinto’s outgoing CEO Jakob Stausholm has warned that harsh, high-pressure environments can undermine employee confidence and innovation. He insists that true excellence is only possible when workers feel psychologically safe.
Stausholm noted the misperceived concept that toughness leads to high performance, stating that it actually leads to a toxic environment. During his tenure, he made cultural reform a top priority at Rio Tinto, following internal surveys in 2021 and 2024 that revealed widespread bullying and harassment.
Recently, Rio Tinto released the findings of an independent Progress Review on its workplace culture. It found that while the organisation had made ‘promising’ advances in culture, problematic behaviours remain in some areas. For example, 39% of respondents said they had experienced bullying (up from 31% in 2021).
EEO Specialists works with organisations to enable safe and respectful workplaces. We offer a range of in-person workshops as well as online courses. If you would like to have a confidential discussion about workplace behaviour and compliance, please or email franca@equalopportunitytraining.com.au
AHRC welcomes review of Disability Discrimination Act
The Australian Government is undertaking a review of the Disability Discrimination Act 1992 (Cth) (DDA) to consider options to implement the 15 recommendations from the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability.
The Australian Human Rights Commission (AHRC) has suggested that reform should include the introduction of a ‘positive duty’ on those with obligations under the DDA (such as employers) to take active steps to prevent and eliminate disability discrimination. This could operate similarly to the ‘positive duty’ recently introduced to the Sex Discrimination Act 1984 (Cth) obliging employers to eliminate sexual harassment in workplaces.
Meanwhile, employers must continue to abide by their current obligations under the DDA, including making reasonable workplace adjustments for people with disability to work safely.
New study reveals workplace gendered and racial imbalances
The recent Gender Economic Equality Study by Job Skills Australia has revealed that only one in five occupations in Australia is considered gender balanced.
The report found that occupation shortages typically worsen as gender segregation intensifies, particularly in male-dominated occupations. It found that 73% of male-dominated occupations were in shortage, compared to 47% of female-dominated jobs. It also found that First Nations women have the largest gender pay gap in Australia, with First Nations women earning 65 cents for every dollar earned by Australian men.
This is the result of the intersection between gendered and racial discrimination, which combine to create significant barriers to economic equality.
AHRC launches survey about racism at universities
The AHRC has launched an online survey to ask university staff and students about their experiences of racism.
The Race Discrimination Commissioner says that ‘the findings of the survey will be instrumental in informing recommendations to the Australian Government and Australia’s universities to help them deliver safe and racism-free learning and working environments. All current staff and students 18 years and over at participating Australian universities will be invited to take part in the survey via their university email accounts.
In 2024, the AHRC delivered an interim report to the Australian Government for the Racism@Uni project. Initial findings revealed that both interpersonal and structural racism are pervasive and deeply entrenched in Australian universities.
Employee dismissed after misgendering non-binary colleague
An employee in Perth was terminated from his job after he called a non-binary colleague ‘he’ instead of ‘they’.
The dispute arose after an exchange at a leadership training course in February, when the man said ‘he’ while introducing his co-worker to the room. Another staff member corrected him, and the man apologised to the colleague. It is reported that the colleague had earlier told the man that they wanted to be referred to as ‘they’ and the pronoun was written on their name badge.
The man was later informed by his manager that a formal complaint had been lodged, and a written apology was required. After he refused to apologise, the company launched an investigation, and the worker was ultimately terminated.
He claimed his dismissal was unlawful and brought a Fair Work action, but ultimately reached a confidential settlement with the employer. Lawyers said ‘this situation would broadly fall within equal opportunity legislation’ because the law prohibits discrimination based on gender or intersex status.
Mandatory sexual harassment training in hospitality
Following in the footsteps of NSW, mandatory training for all hospitality staff is set to be implemented in South Australia to combat sexual harassment.
The SA state government released a discussion paper to encourage consultation from the hospitality industry and other stakeholders. The paper references the fact that ‘approximately half of hospitality workers have experienced sexual harassment, assault or discrimination in the workplace’.
Submissions are open and the government says training will be finalised by the end of year.
Employee claims unfair dismissal following aggressive behaviour
The Fair Work Commission (FWC) recently examined an unfair dismissal claim involving a sous chef who was dismissed after allegedly shouting, swearing and slamming pots and pans in an unsafe manner that posed serious safety risks to staff.
The worker argued the dismissal was unfair because it followed months of alleged bullying, harassment and micromanagement from the head chef. Following the incident, management met with the worker, outlined their concerns and gave him an opportunity to respond.
The proprietor of the restaurant decided to terminate the worker’s employment with payment in lieu of notice after the worker failed to accept responsibility for his actions.
The FWC found that the worker’s conduct constituted serious misconduct that posed significant safety risks, constituting a sound reason for dismissal.