New Risk for Employers

A recently passed law means employers now have higher liability risk for sexual harassment litigation costs.

Recently the Federal Government passed another employment law change, which significantly increases the risk that employers will be liable for costs orders in sexual harassment litigation.

The new legislation now outlines that the respondent – often the employer – will be liable for the legal costs of a claimant in a sexual harassment claim under the Sex Discrimination Act 1984 (Cth) – even if only one element, not all, of their claim is successful.

The Bill is intended to remove barriers for individuals accessing legal protections and remedies in relation to sexual harassment. The legislation not only prevents a respondent from recovering legal costs against a claimant, except in severely limited circumstances, but it also expands the circumstances in which a claimant, with even a minor success, can recover their legal costs from the respondent. The implications for employers are significant, as will be the future strategy and conduct of defences in these matters.

It is important that employers are proactive in their methods of preventing sexual harassment in the workplace. There should be not just a policy and training, but the employer should review the working arrangements to ensure that the risk of sexual harassment is minimised.