Respect@Work Act 2022: Consequences for non-compliance

The Anti-Discrimination and Human Rights Legislation Amendment (Respect@Work) Act 2022 is a new law in Australia that was passed in 2022 with the aim of addressing and preventing sexual harassment in the workplace. The act is intended to create a safer and more inclusive work environment for all employees by changing the way sexual harassment is handled in the workplace.

With more funding into monitoring non-compliance, Australian businesses will have until December 2023 to comply with these new laws, or else they could face dire penalties, reputation damages and as well as publicly being named for not complying.

What’s New in the Respect@Work Act?

  • Definition of Sexual Harassment: The Respect@Work Act expands the definition of sexual harassment to include non-physical forms such as online harassment.
  • Liability for Harassment: The definition of who can be held liable for harassment has been expanded to include non-employers such as contractors and volunteers.
  • Complaints to the Commission: The act expands the jurisdiction of the Australian Human Rights Commission to include sexual harassment complaints, allowing employees to make a complaint directly to the Commission.
  • Proactive Measures for Employers: Employers are required to take proactive measures to prevent harassment, including developing and implementing policies, providing training and education for employees, and taking appropriate action when incidents are reported.
  • Criminal Offence for Victimisation: The act makes it a criminal offence to victimise a person for making a complaint of sexual harassment or cooperating in an investigation.
  • Complaint Handling Procedure: It is mandatory for all employers to have a complaint handling procedure in place.

Consequences of Non-Compliance

  • Legal Liability: Employers who fail to comply with the Respect@Work Act may be held liable for any incidents of harassment or discrimination that occur in the workplace, leading to financial penalties and damages awarded to affected employees.
  • Job Loss and Reputation Damage: A failure to comply with the laws could result in negative publicity and damage to an employer’s reputation, leading to a loss of business, loss of job and difficulty in attracting and retaining employees.
  • Short-term and Long-term Shareholder Value: Negative impacts to your brand can also negatively impact your short-term and long-term shareholder value.
  • Employee Complaints and Legal Action: Employees who experience harassment or discrimination may file complaints with the Australian Human Rights Commission, leading to investigation and potential legal action.
  • Increased Insurance Costs: Non-compliance with the laws may result in higher insurance costs for employers.
  • Difficulty in Attracting and Retaining Employees: A workplace culture that does not prevent harassment and discrimination may be less attractive to potential employees, leading to a loss of talent and difficulty in finding and retaining high-quality employees.
  • Loss of Productivity: Harassment and discrimination can create a hostile work environment, leading to employee dissatisfaction and loss of productivity.

 

Penalties and Damages under the Sex Discrimination & Work, Health and Safety Act

Businesses that breach the legislation may be subject to:

  • Breaches: Breaches of the Sex Discrimination Act do not contain an upper limit of damages and the court may consider various heads of damages, including for humiliation and hurt. Compliance notices and enforceable undertakings can also be issued for breaches, with employers in breach able to be publicly named.
  • Hostile Work Environment: Subjecting a person to a hostile workplace environment on the ground of sex is now unlawful. Employers have a duty to eliminate, as far as possible, sex-based harassment, sexual harassment, conduct subjecting a person to a hostile work environment, sex discrimination, and victimisation related to complaints of the above.

In addition, they face severe penalties under the Work Health and Safety Act.

  • Psychosocial Hazards: A person conducting a business or undertaking must now eliminate (or minimise if impossible) psychosocial hazards as far as reasonably practicable. Failure to do so will contravene this section and result in penalties.
  • Penalties: Failure to comply with a health and safety duty that exposes a person to risk of death or serious injury or illness:
State Individual Corporation
Victoria $332,856 $1,664,280
NSW $185,923 $1,860,843
SA $150,000 $1,500,000
Queensland $150,000 $1,500,000
Tasmania $150,000 $1,500,000
ACT $150,000 $1,500,000
Western Australia $170,000 $1,800,000
Northern Territory $150,000 $1,500,000

What next?

It’s essential for employers to be aware of their obligations under the Respect@Work Act and to take the necessary steps to ensure compliance. By developing a culture of respect in the workplace, employers can help ensure that all employees feel safe and valued, and incidents of harassment.

You can learn more about the legislation and further recommendations on the Respect@Work website or watch our on-demand webinar to hear more about the new changes, preventive measures you can start implementing and more.

To discuss any aspect of this new legislation or any other compliance topic, please book an appointment today with one of our experienced compliance consultants.

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