A Victorian company was fined $40K by the Melbourne Magistrates Court after being prosecuted by WorkSafe Victoria for failing to control the risks of sexual harassment in its workplace.

The prosecution followed a complaint made to WorkSafe by an employee who reported the company’s sole director had sexually harassed her on numerous occasions across several months. WorkSafe investigated and found that the company had failed to implement even the most basic systems to manage the risks of sexual harassment, including failing to:

• Establish clear and confidential mechanisms for employees to report sexual harassment;

• Provide written policies or procedures that addressed sexual harassment or committed to protecting employees from such conduct;

• Induct and train employees on workplace standards and reporting processes; and

• Train managers on their legislative obligations and responsibilities.

The company pleaded guilty to a single charge under section 21(1) of the Occupational Health and Safety Act 2004 (Vic), which requires employers, so far as is reasonably practicable, to provide and maintain a working environment that is safe and without risks to health.

Although pleading guilty, the company contested the truthfulness of the employees allegations. Following a contested plea hearing, the Court found the conduct of the company director towards the employee was proven.

In sentencing the company, the Court noted:

• The lack of remorse by the company.

• A disregard for the risks posed to employees.

• The continued offending which increased risks to employees.

• The plea of guilty was still of substantial utilitarian benefit even though it was shortly before a contested plea hearing after a protracted period and the worker was cross-examined.

• It was appropriate to convict given the seriousness of the offending despite the lack of priors. The Court was not satisfied that a conviction would impact the company’s economic prospects.

Thought List and Takeaways

This decision, and the surrounding circumstances, serves as a reminder to businesses that sexual harassment is not only a workplace relations issue but also a serious workplace health and safety risk. Employers have clear obligations to take proactive steps to prevent and respond to harassment. This should include:

• Implementing robust policies that clearly prohibit sexual harassment and outline how complaints will be managed.

• Establishing confidential reporting channels that employees can trust and access without fear of reprisal.

• Training all employees and managers regularly on their rights and responsibilities.

• Documenting compliance measures to demonstrate that the organisation has taken all reasonably practicable steps to provide a safe workplace.

• Holding directors and senior leaders accountable for their conduct and for ensuring that risk management systems are effective.

Failure to act leaves organisations exposed to prosecution, financial penalties, reputational harm, and, most importantly, ongoing risks to employee safety and wellbeing.