A new law has increased employers' liability for costs in sexual harassment litigation.
The Australian Human Rights Commission Amendment (Costs Protection) Bill stipulates that respondents, typically employers, must cover claimants' legal costs even if only part of their claim succeeds. This is the last of the 55 recommendations from the Australian Human Rights Commission’s (AHRC) 2020 Respect@Work report to be executed.
Previously, employers would only pay costs if they acted unreasonably. This new change to employment law limits respondents' ability to recover costs and broadens the circumstances under which claimants can recover their expenses. This creates a significant risk for employers, as claimants can pursue multiple claims related to a single incident, increasing their chances of recovering costs if they succeed in any aspect of their case.
It's important for employers to proactively address sexual harassment to mitigate claims and comply with their obligations under workplace laws. Mitigation strategies include:
Regularly reviewing the workplace culture and conducting WHS risk assessments to identify and prevent harmful workplace behaviours.
Providing comprehensive training to all employees on the organisation’s code of conduct.
Implementing robust policies and complaint protocols.
Managing complaints effectively, including conducting fair, unbiased investigations.
Proactive measures are essential for employers to reduce liability and foster a safe, respectful work environment. For support or more information, contact us today.
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