$90,000 fine for failing to prevent sexual harassment
No policy. No action. A costly lesson in managing psychosocial risk.
Oz 22 Painting Pty Ltd has been convicted and fined after a manager (who was previously a company Director and is the husband of the sole current Director) engaged in inappropriate behaviour towards a worker over a two-month period. The business had no policy in place to address workplace behaviour or sexual harassment. The case highlights serious lapses in duty of care and offers critical lessons for other businesses.
An investigation by WorkSafe Victoria’s Psychosocial Operations Inspectorate followed a worker’s complaint and revealed that the conduct occurred over a 61-day period, culminating in a serious incident that led to the worker’s resignation.
Timeline of Events
30 May 2022 – Trial Shift
The worker commenced a trial shift. TK (a manager at the time, and former Director/husband of the sole Director) began making comments about her hair and asking personal questions.
June–July 2022 – Escalation
TK’s behaviour escalated to repeated, unwanted requests to spend time together, comments about her appearance, and on one occasion, putting his arm around her neck. Some interactions were recorded by the worker.
29 July 2022 – Serious Incident and Resignation
Believing she was attending a job in Bundoora, the worker met TK at a train station. Instead, he drove her around for 1.5 to 2 hours, pressuring her to spend the day with him, go to a hotel, and exchange massages. The worker recorded several conversations and resigned immediately after.
29 July 2022 – Complaint Made
Later that day, the worker contacted WorkSafe Victoria’s Psychosocial Operations Inspectorate to report the conduct.
WorkSafe Investigation and Court Outcome
WorkSafe’s investigation confirmed that the business had no sexual harassment policy or procedures in place to manage workplace behaviour.
The court found that Oz 22 Painting Pty Ltd had failed to provide a safe system of work, failed to ensure the workplace was safe, and failed to provide safe means of entering and exiting the workplace. The company did not participate in the legal process, and the case proceeded ex parte. The court found the business guilty and, with conviction, imposed a fine of $90,000 and ordered it to pay $6,792 in costs.
Key Lessons for Businesses
Businesses must have clear systems and policies in place to prevent and respond to inappropriate workplace behaviour, including sexual harassment and other psychosocial risks. It’s not enough to simply have a policy—managers and workers must also be trained to recognise, report, and respond appropriately.
Psychosocial risks are a recognised WHS obligation, and failing to manage them can have serious legal and financial consequences.
If your business needs support to review workplace behaviour policies, deliver staff training, or improve how psychosocial risks are managed, our team can help.
Further Information
WorkSafe Victoria has clear guidance on preventing workplace sexual harassment, including practical steps for employers:
👉 Let’s be very clear about sexual harassment – WorkSafe Victoria
Safe Work Australia has published a national Code of Practice on Sexual and Gender-Based Harassment (December 2023), outlining legal duties and practical controls to manage this psychosocial hazard: