Record sexual harassment payout - employer obligations and strategies

A recent Federal Court decision awarded $305,000 to a former employee in a sexual harassment case. The judgment details the conduct, organisational failings, and legal breaches involved.

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This newsletter covers

• Federal Court decision: case facts
• Related enforcement action highlighting regulator priorities
• Employer measures to prevent harassment
• Sample survey questions and follow up process for workplace monitoring

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Federal court decision – key facts

A former employee of a Mad Mex franchise was awarded $305,000 in damages by the Federal Court after being subjected to repeated sexual harassment and victimisation.

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Read full story here

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Key facts

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Related enforcement action – common failures across cases

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The Mad Mex case is not isolated. In July 2025, WorkSafe Victoria charged a caravan park and its director following allegations of sexual harassment of a female employee.

In both the Federal Court decision and the caravan park prosecution, the absence of clear prevention measures was central.

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These matters show that different regulators apply similar expectations across industries: employers must have documented policies, provide training, conduct risk assessments and ensure staff know how to report harassment.

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Employer Measures to Prevent Harassment

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Employers are required to take proactive steps to eliminate sexual harassment under the Sex Discrimination Act and work health and safety laws.

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Workplace survey – example questions

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Sample questions to include in staff surveys to assess risk levels:

1. I feel safe and supported to report harmful behaviour
   1. Strongly disagree to strongly agree
2. Have you witnessed behaviour or comments that could be considered harassment?
   1. Yes, I have experienced it
   2. Yes, I have observed it
   3. No
   4. Prefer not to say
3. I am aware of the procedure to report workplace harassment
   1. Strongly disagree to strongly agree
4. I believe reports of this behaviour are taken seriously and addressed fairly
   1. Strongly disagree to strongly agree

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Interpreting and following up the results

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Do you have operations in QLD?

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We have summarised the mandatory harassment prevention plan code of practice for you into one simple excel. Reach out to info@skodel.com if you are interested in getting access.

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We hope you found this helpful and as always, thank you so much for reading