The introduction of the positive duty under the Sex Discrimination Act 1984 (Cth), alongside increased emphasis on managing psychosocial risks under workplace health and safety laws, represents a pivotal shift in Australia’s regulatory approach to workplace culture.
In 2024, workplace sexual harassment captured national attention through high-profile cases across industries, highlighting the ubiquity of the problem and fuelling customer and shareholder demand for transparency and accountability.
Sexual harassment and toxic workplace cultures represent a real reputational and financial risk to workplaces. According to Allianz Insurance, claims for workplace harassment and bullying increased by 61% between 2019 and 2023. The average payout for psychological injuries such as these is close to three times the average payout for physical injuries: between 2019 and 2023, the average payout rose from $32,769 to $42,335. Accordingly, there is an urgent need for companies to consider the human and financial costs of psychosocial hazards in the same way as they do physical hazards. The positive duty places a further legal obligation on workplaces to proactively eliminate sexual harassment and sex discrimination.
In 2024, I supported Directors and senior executive teams across the country to meet positive duty obligations. While there is unanimous agreement that strengthening workplace culture is critical, I have found that a gap sometimes remains between this understanding and the genuine commitment of resources to foster a better culture. A strong workplace culture doesn't emerge by accident: it requires intentional effort, investment, and consistent, ongoing actions. Leaders must move beyond acknowledgment and take proactive steps to cultivate environments where safety, respect, and inclusion are deeply embedded in daily operations.
How are companies tracking?
In November 2024, the federal Workplace Gender Equality Agency (WGEA) released its first results on employer actions under the positive duty, covering over 7,000 employers. Encouragingly, 99% of employers have formal policies addressing work-related sexual harassment and discrimination and 95% have processes to disclose, investigate and manage sexual harassment. More concerningly, however, 32% of businesses don’t have anonymous reporting processes for workers to disclose sexual harassment. In my experience, offering a range of different reporting options is usually best suited to meet workers’ needs, and many workers prefer options that allow them to report concerns anonymously. Finally, while 85% of employers had their sexual harassment and discrimination policy reviewed by the CEO, only 55% had it reviewed by the Board. As I will explore further, understanding and commitment from the whole leadership team is essential to meeting the positive duty and creating a safe, respectful workplace.
Addressing key challenges in eliminating workplace sexual harassment
1. Role of leadership
Leadership is ultimately responsible and accountable for preventing workplace sexual harassment and sex discrimination and for meeting the positive duty obligations. Too often I see leaders delegate responsibility to Human Resources or People and Culture. While they can assist in implementing measures, it must, however, be driven by leadership.
Directors need to set the tone from the top, ensuring that respect, safety, and accountability permeate all levels of the organisation. Put simply, leaders need to approach cultural change as they would any other business imperative. The positive duty and workplace culture should be prioritised as a strategic objective, with clear metrics and regular reporting to track progress. Key leadership actions include: communicating the organisation’s position on eliminating sexual harassment, role modelling safe and respectful behaviour and, importantly, calling out everyday sexism and other harmful behaviour to foster a culture of accountability and awareness.
Research out of Stanford University points to a single step that leaders can take to help reduce sexual harassment: that is, to communicate to employees that prevention is a high-priority issue for their companies. Just as an organisation will take care to communicate its values to its workers, communicating a serious stance on sexual harassment will demonstrate expectations of behaviour to all employees. Conversely, if leaders are silent, they may foster a culture where sexual harassment is tolerated and will become more prevalent.
2. Underreporting of Harmful Workplace Behaviours
Underreporting of sexual harassment remains a pervasive problem in all industries. Fear of retaliation, lack of trust in reporting mechanisms, and the cultural stigma around speaking out are key drivers of this silence. It’s an enormous challenge for employers, because how can they address what they don’t know? That’s why psychological safety and building a strong speak-up culture is critical.
Companies can help cultivate a strong speak-up culture by making it easy and safe for people to report issues. They can do so by providing multiple reporting pathways that are person-centred and trauma informed, including an anonymous option. When employees feel empowered to speak up, companies gain better visibility over workplace culture and can identify and mitigate risks early.
It is important to remember that an initial increase in reports of harmful behaviour is a positive sign of change – it means your systems are working, and eventually, as behaviour and attitudes shift, those numbers will go down.
3. Diversity in leadership
Low worker diversity is a risk factor for workplace sexual harassment. Despite years of focus on gender diversity, the data shows Australia’s boardrooms remain overwhelmingly homogenous. A culture that advances gender equality, diversity and inclusion, is at the core of eliminating harmful behaviour. Companies are encouraged to use effective strategies that create a diverse workforce – this should start from the top, including ensuring diversity at the management and board levels.
4. Intersectionality
Along with gender inequality, intersectional discrimination is a key driver of workplace sexual harassment - with LGBTIQI+ workers, women of colour, First Nations and women with a disability experiencing higher rates. In 2024, a survey by Unions NSW revealed that 51 per cent of migrant women have experienced workplace sexual harassment, yet 75% did not report.
Measures to address sexual harassment often overlook how intersecting identities exacerbate harm, making ‘one size fits all’ policies ineffective and potentially exclusionary. An intersectional approach is essential to ensure that prevention strategies address the unique vulnerabilities and barriers faced by different groups, creating safer and more inclusive workplaces for all.
5. Education and Training
While some organisations have implemented respect at work education and training programs to meet their positive duty obligations, the quality and depth of these initiatives are often lacking. "Tick-the-box" compliance training may provide superficial awareness, but it fails to shift attitudes and behaviours.
True cultural transformation requires sustained, in-depth education that raises awareness of harmful behaviours, and equips employees and leaders with the tools to intervene and respond in a trauma-informed and person-centred way. Boards have a responsibility to ensure that sufficient resources are allocated for comprehensive, ongoing training tailored to their workplace’s specific context.
Looking Ahead
Workplace sexual harassment, bullying and other psychosocial hazards cost Australian companies staggering amounts each year. A 2022 study by MIT Sloan School of Management found that the biggest predictor of employee attrition isn’t pay but toxic workplace culture, in which employees feel disrespected. This underscores the urgent need for companies to prioritise meeting positive duty obligations and creating environments where respect, safety, and inclusion are embedded at every level to drive retention and long-term business success.
Latest news
Already a member?
Login to view this content