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Workplace Sexual Harassment Laws Guide 2025

Workplace sexual harassment continues to pose serious risks to both individuals and businesses across Australia. In response, the Australian Government has strengthened legal protections and clarified the responsibilities of employers and employees through new laws introduced by:

In this guide (updated in August 2025), our employment lawyer explains the latest legal changes, employee rights, and practical employer obligations for 2025 and beyond.

Key Takeaways

  • Employers now have a positive duty to take all reasonable steps to prevent sexual harassment 
  • Penalties for non-compliance have increased, with substantial fines for both individuals and corporations 
  • Employees have clear rights to a harassment-free workplace, to make complaints, and to seek compensation 
  • Practical steps for both employers and employees are outlined for effective compliance and protection 
Farrah Motley is the Legal Practice Director of Prosper Law and a highly experienced lawyer

What is Workplace Sexual Harassment?

Sexual harassment is defined under section 28A of the Sex Discrimination Act 1984 (Cth) as:

“Any unwelcome sexual advance, request for sexual favours, or conduct of a sexual nature that a reasonable person would expect to cause offence, humiliation, or intimidation.”

Common Examples of Sexual Harassment

  • Quid pro quo harassment (e.g. promotion in exchange for sexual favours) 
  • Hostile work environment (e.g. repeated sexually explicit jokes) 
  • Unwanted physical contact 
  • Sexually explicit comments or jokes 
  • Displaying offensive material or making suggestive gestures 
  • Cyber-harassment (e.g. explicit messages) 
  • Discriminatory harassment based on sex, gender identity, sexual orientation, or other protected attributes 

To better understand the broader legal framework, read our comprehensive guide on sexual harassment law in Australia.

Key 2025 Legal Changes: What’s New?

1. Broader Definition of Sexual Harassment

The definition now covers a wider range of behaviours, including any unwelcome or offensive conduct of a sexual nature (regardless of intent) occurring in a work-related setting. 

Characteristic 

Old Definition 

New Law (2025)

Scope 

Specific behaviours only 

Wider range of behaviours 

Intent 

Must be intended as sexual 

Intent not required if unwelcome 

Context 

Not always work-related 

Must occur in work-related setting 

2. Positive Duty for Employers

Employers are legally required to take all reasonable steps to prevent sexual harassment before it occurs, not just respond after the fact.

This includes: 

  • Clear and up-to-date policies

  • Workplace training for all staff

  • Safe and confidential complaint procedures

  • Promoting an inclusive, respectful work culture

  • Monitoring for risks and acting on early warning signs

3. Increased Penalties

Penalties for non-compliance have been significantly increased: 

Offender Type 

Previous Maximum Penalty 

New Maximum Penalty 

Individuals 

$66,000 

$132,000 

Businesses 

$33,000 

$66,000 (up to $315,000 for corporations in serious cases)

Stephen Motley is a former Queensland licensed builder and the Legal Operations Manager of Prosper Law

Employer Obligations Under Australian Law

To stay compliant, employers must:

  • Have a written sexual harassment policy in place

  • Provide regular and documented staff training

  • Respond promptly and fairly to complaints

  • Maintain confidentiality and anti-victimisation protections

  • Support victims with counselling and legal resources

  • Show that “all reasonable steps” were taken to prevent harassment

Important: Failure to act may result in vicarious liability, meaning the business is legally responsible for its employees’ actions.

Employers should also stay informed about their general obligations under the Fair Work Act to ensure full compliance with Australian employment laws.

Employee Rights and Responsibilities

Rights

  • To a workplace free from sexual harassment 
  • To make complaints to the employer, Fair Work Commission, or Australian Human Rights Commission (AHRC) 
  • To protection from victimisation after making a complaint 
  • To seek compensation for losses suffered due to harassment 

Responsibilities

  • Report acts of harassment as soon as practicable
  • Cooperate with investigations 
  • Support the employer’s efforts to maintain a respectful workplace 

For insights into the role of employees during investigations, explore our article on witnesses and workplace investigations.

For Employees: Complaint Procedures and Remedies

Making a Complaint

  • Report to your employer through internal procedures first 
  • If unresolved, escalate to the Fair Work Commission or AHRC 
  • If still unresolved, apply to the Federal Court of Australia within 60 days of termination of the AHRC process 

Available Remedies

  • Compensation for lost wages, medical expenses, and pain and suffering 
  • Reinstatement to employment 
  • Apologies and other non-monetary remedies 
  • Aggravated and exemplary damages in serious cases 
Prosper Law is an Australian law firm. Our Melbourne business lawyers are experienced and qualified legal practitioners who have helped hundreds of Australians with their legal matters

Practical Steps

For Employers

Business should:

  • Draft and regularly review a written sexual harassment policy 
  • Conduct ongoing training for all staff 
  • Respond promptly and thoroughly to complaints 
  • Take disciplinary action where necessary 
  • Monitor workplace culture and address risks proactively 

For Employees

Employees should:

  • Document all incidents with dates, times, and witnesses 
  • Report the behaviour using your employer’s procedures 
  • Seek support from trusted colleagues or unions 
  • Escalate the complaint if unsatisfied with your employer’s response 
  • Consult a workplace lawyer for advice on your rights and options 

If you need advice on workplace sexual harassment laws or assistance with compliance or complaints, contact our employment law team today. We provide tailored legal solutions for employers and employees across Australia. 

What’s to Come: Future Developments in Sexual Harassment Law

A recent report by the Australian Human Rights Commission signals a stronger regulatory approach to workplace sexual harassment, calling for tougher enforcement, transparency, and victim support across Australian workplaces.

Key developments on the horizon:

  • Stronger Enforcement of the Positive Duty: The Australian Human Rights Commission (AHRC) is expected to take a more proactive role in monitoring and enforcing employers’ compliance with their positive duty to eliminate sexual harassment, as outlined in recent legislative updates.

  • Public Reporting and Accountability Measures: Future reforms may introduce mandatory reporting requirements, where large employers must disclose sexual harassment complaints, resolutions, and preventive actions taken.

  • Stricter Use of Confidentiality Clauses: Calls for stronger measures, including limiting the use of non-disclosure agreements (NDAs) that silence victims or obscure systemic issues.

  • Greater Support for Victims and Whistleblowers: Expanded access to legal aid, trauma-informed complaint processes, and whistleblower protections are likely to be prioritised in upcoming reforms.

  • Increased Penalties and Legal Consequences: Lawmakers are considering further increases to civil penalties, particularly for organisations that fail to take genuine preventative steps or ignore complaints.

These changes signal a shift from reactive compliance to proactive cultural leadership. Employers who invest now in policy development, staff training, and internal reporting mechanisms will be best placed to avoid liability and foster a respectful workplace.

Allison is a Senior Paralegal at Prosper Law

Frequently Asked Questions

What constitutes workplace sexual harassment under Australian law?

Workplace sexual harassment includes any unwelcome conduct of a sexual nature that could reasonably offend, humiliate or intimidate someone at work. This covers physical, verbal, visual, and online behaviours. 

What should an employer do if they receive a complaint?

Employers should investigate promptly, maintain confidentiality, protect the complainant from victimisation, and take appropriate corrective action. 

Can an employee be penalised for making a complaint?

No. The law prohibits victimisation of anyone who makes or participates in a complaint process. 

What are the penalties for employers who fail to comply?

Penalties include substantial fines for both individuals and corporations, as well as orders to pay compensation to victims. 

How long do employees have to lodge a complaint?

Generally, complaints must be lodged with the AHRC within 12 months of the alleged incident. The Federal Court application must be made within 60 days of AHRC process termination. 

About the Author

Picture of Farrah Motley
Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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